Loss from trade of options in nifty and bank nifty (index)in stock market

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This discussion addresses whether losses incurred from trading Nifty and Bank Nifty options can be adjusted against other business income, such as iron and steel trading or commission income. The advice clarifies that option trading losses are generally adjustable against business income, unlike intraday share trading losses. This is particularly relevant for a GST-registered proprietorship firm for the financial year 2022-2023.

ARUN GUPTA

ARUN GUPTA (Querist)
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29 July 2022 We have suffered losses from trade of options in NSE IN intraday of about Rs250000/ . Can we adjust our business income from trading of iron and steel or commission income from above lossess. Will income tax allow adjustment of losses? We are gst registered proprietorship firm. Please advise us for fy 2022-2023 about the rules of income tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 July 2022 Yes, you can adjust the loss in case of options trading and not in case intraday trading of shares. in other business income including commission income.

ARUN GUPTA

ARUN GUPTA (Querist)
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29 July 2022 Yes we have traded in options in intraday also so we we can adjust these losses with commission income or interest income or business income from trading of iron and steel materials? Please clarify?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 July 2022 Yes you can adjust..........

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