Derivative - F&O Loss Set off
This query is : Resolved
21 September 2009
Whether derivative transaction is treated as speculative transaction?
I think it is not as speculative transaction?
If no,Profit & loss from trading in F&O ie Derivatives can be adjusted against normal profit & loss in Business income?
Whether there is any particular section or case law in Income Tax which deals with the above case?
I think it is not as speculative transaction?
If no,Profit & loss from trading in F&O ie Derivatives can be adjusted against normal profit & loss in Business income?
Whether there is any particular section or case law in Income Tax which deals with the above case?
21 September 2009
As per proviso (d) to sub clause 5 of section 43 of The income tax act,1961, trading in derivatives is not a speculative transaction. Therefore, loss arising there from can be adjusted against other business income.
21 September 2009
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