Currency derivative trading

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VJ (Querist)

27 July 2012 Hi,

I have a loss of Rs. 796.14 in Currency Derivative Trading,
1. Under what head I have to mention this losses?
2. Can I Carry Forward this losses?

CA Rahul Gupta

CA Rahul Gupta (Expert)

27 July 2012 With the insertion of Section 43(5)(d), eligible transactions on notified stock exchanges have been rendered non-speculative in nature. So far only BSE, NSE and MCX-SX have been notified for this purpose. Therefore, trading in commodity and equity derivatives traded on stock exchanges other than those mentioned above, is still treated as speculative, the loss wherefrom cannot be adjusted against any other sources of income.

Losses from derivatives are eligible to be carried forward for a period of four years.

VJ (Querist)

27 July 2012 Thanks Rahul,

I have done "Currency Future Trading" in NSE stock exchange in the financial year 2010-2011. So will it come under "Speculation Losses" or "Business Losses"?

aadish

aadish (Expert)

27 July 2012 It is a speculation loss and can be carry forward for 4 years and if some one have a business of trading then, it will become business loss and can be carried forward for 8 years.

CA Rahul Gupta

CA Rahul Gupta (Expert)

27 July 2012 It will be treated as Business Loss as per sec 43(5)(d)

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