Set off of speculation loss (trading in shares) next year.

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Narendra Shah (Querist)
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15 November 2010 When you have loss in any year from trading (business loss from buying and selling shares) which is treated as speculation loss u/s 73 and in subsiquent next year you have profit , now the question is whether this loss is setoff aginst the profit in the next year's profit (business profit form buying and selling shares) which is from the same activity, which is now not u/s 73?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 November 2010 Dear Narendrabhai,

Loss from share trading is not always a speculation loss. Loss from Intra-day Transactions where no delivery of shares is taken is treated as Speculation Loss.
Loss from trading in shares on delivery basis is a normal business loss.

Speculation Loss can be set off against the speculation profits of the next year. For this, you have to file your return showing the loss to be carried forwarded within the prescribed time limit.

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