speculation loss

This query is : Resolved

JAWAHAR (Querist)
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09 August 2010 My client is doing the business as franchisee of a stock broker. In the last year he is having good profit in this concern. In the meantime he has done share business of his own and incurred huge loss and Rs.47000/ deducted as STT. If he set off his loss with business profit what is to be done. Even he set off with current years business profit it will be again C/F loss. Can he claim STT? His major loss came from doing business as Futures and Options for which he can claim the loss ? If we C/F the loss to future year can he set off this from business income of next year? Or will get benefit from speculation profit in the next year? What is the actual way of showing this loss and to get benefit for him this year?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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09 August 2010 First of all kindly provide us the details whether the assessee is a company, firm or an individual to check the applicability of Section 73 and secondly what do u mean be share business whether it is intra day trading or delivery trading?

Without that we would not be in a position to comment on the above.

For the second part of the query now STT is an allowable expenses in share trading business, and will be added to the loss.

F & O loss is normal business loss and can be set off against business profits of franchisee business in case of any type of constitution and STT will also be an allowable expenditure.

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