Tax impact for future and option trading

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s.karthikeyan (Querist)
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26 June 2014 sir,

i am a salaried person within a slab limit of 2 lakhs to 5 Lakhs.And also i am receiving insurance commission around 10,000 per annu and also deducting TDS.

i am having demat account with 3 brokers.
doing intraday and options trading.

i met loss in future and option for the year 2014 and 2015( in the month of April, May and June 2014)

my question are
1. can i adjust the loss from option trading? and howlong it can be carry forward?

2. which type of return should file?

3. is it come under Business or profession?

pls advice me

thanks
Karthik

CA R SEETHARAMAN online

CA R SEETHARAMAN online

(Expert)
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05 July 2014 Option trading loss is a speculation loss which can be carried forward for 4 years, adjustment against such speculative gain.

It will come under business, so relevant return has to be filed with tax audit.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 August 2014 have to disagree. Options trading is not speculative income. please refer proviso to section 43(5). such losses/incomes shall be considered as normal business loss/income and shall be available for carry forward upto 8 assessment years.

CA R SEETHARAMAN online

CA R SEETHARAMAN online

(Expert)
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12 August 2014 I agree with Nikhil Kaushik.

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