Gain or loss on forward contract
This query is : Resolved
Prakash Jasani
(Querist)
10 November 2008
Dear Experts,
Under forward contract how many types of losses or gain covered.I mean to say for business purpose or speculation purpose.
Whether gain or loss on forward contract covered under section 72(i.e.business loss) or covered under section 73(i.e.speculation loss)
Pls.clarify the doubts.
Regards,
Prakash Jasani
Under forward contract how many types of losses or gain covered.I mean to say for business purpose or speculation purpose.
Whether gain or loss on forward contract covered under section 72(i.e.business loss) or covered under section 73(i.e.speculation loss)
Pls.clarify the doubts.
Regards,
Prakash Jasani
11 November 2008
Forward contracts in Securities are not speculative. The hedging transactions in commodities market are also not speculative in nature. Section 43(5) may be referred in this regard. Any loss arising from speculative trades will be carried forward u/s 73 while loss from non-speculative trades will c/f u/s 72 as a normal business loss.
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