Profit adjustment

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This query is : Resolved

RAJU MAL BARDIA (Querist)

11 March 2014 I want to know the rate of income tax on profit made Dollar trading profit,Derivatives market,commodities profit, ncdx transactions & adjustment of loss on each activities whether inter adjustment of loss or profit being permitted or not

sourabh tukliya

sourabh tukliya (Querist)

11 March 2014 i invested over the last three yeara 5 lacs a year (total 15 lacs) in an insurance scheme...the returns were very poor..as a consequence liquidated the policy...the 15 lac investment shrank to about 14.5 lacs ...a loss of 50000. can this loss be written off against profits ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

11 March 2014 transaction carried out through a recognised exchange shall be considered as business transaction. and inter-head adjust can be permitted for such transactions.

however, transaction done off-stock exchange shall be considered as speculative transactions and set off wont be allowed

Nikhil Kaushik

Nikhil Kaushik (Expert)

11 March 2014 Sourabh,

First, did you claim any deduction under 80C against this insurance scheme/policy? if yes, the deduction shall be reversed and taxed in the current year as income.

with regards to returns, if the policy is covered under EEE model, then any loss shall also be exempt and accordingly not available for set off.

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