Set off of loss under other head

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2012 i have losses through trading of shares in
my trading account n i have salary income also. can i adjust such loss from income from salary ? if no what is the tax treatment.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 May 2012 Loss under the head Capital Gain CANNOT be set off against income under any other head.

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2012 but this trading loss can i adjust in anyway in return and short term loss other than section 111A can be adjusted from other heads

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 May 2012 Is this loss non-delivery based loss? Is it speculation loss?

If it is speculation loss, it shall come under the head Income from Business or Profession.

Loss under the head income from business CANNOT be set off against salary income.

Further, Section 71 provides that loss under the head Capital Gain CANNOT be set off against income from any head.

So, long term or short term (section 111A or other) loss under the head capital gain CANNOT be set off against any income.

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2012 it is delivery based loss. No intra day is done in shares.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 May 2012 Since it is delivery based loss it is short term capital loss. This loss cannot be set off against any income. It will be carried forward to the next year.

Next year if you have income under the head Capital Gain, this loss will be set off from such income.

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