Set off of losses
This query is : Resolved
Alisha Agarwal
(Querist)
17 August 2011
A person is carrying business of share trading(not day trading) and F&O through NSE .Can we set off loss from F&O from income of share trading??
IF after such set-off still loss comes then can it be set off from commodity profit income.Please guide.
IF after such set-off still loss comes then can it be set off from commodity profit income.Please guide.
chetan soni
(Expert)
17 August 2011
Let me try this one;
Share profit (not intraday)then it will be classified as STCG or LTCG.
F&O Profit & Commodity Profit: It will be classified as speculative income
Now considering your question:
Now in your case the person carrying on the business of share trading then the profit from such business is classified as business income.
Profit form F&O & Commodity market classifies as income from speculative market hence speculative business income. Now speculative business loss can not be set-off against other (non speculative business income). It can be only set-off against speculative business income only. You can carried forward the speculative loss to 4 yrs & can set-off against speculative profit in future years.
Share profit (not intraday)then it will be classified as STCG or LTCG.
F&O Profit & Commodity Profit: It will be classified as speculative income
Now considering your question:
Now in your case the person carrying on the business of share trading then the profit from such business is classified as business income.
Profit form F&O & Commodity market classifies as income from speculative market hence speculative business income. Now speculative business loss can not be set-off against other (non speculative business income). It can be only set-off against speculative business income only. You can carried forward the speculative loss to 4 yrs & can set-off against speculative profit in future years.
Alisha Agarwal
(Querist)
18 August 2011
but i have heard that F&O trading through recognised stock exchange is non-speculative
Dhirajlal Rambhia
(Expert)
09 October 2021
Yes, F&O & derivative tradings in commodity are non-speculative business & loss of one can be set off with gain of other.
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