Commodity trading as capital gains

section 73 of the Income Tax Act 1961 states about speculation business loss.It states that Loss from speculation business can be carried forward and setoff only against income from speculation business in the subsequent years. Such loss can be carried forward upto 4 assessment years immediately succeeding the assessment year for which the loss was first computed.

In short you cant set off loss of speculation business of previousd year in the income of capital gains in the current year.

Please verify and answer me if the capital gain is long term capital gain or short term capital gain?

Advice 

Make sure that loss occurred to you in the previous year is from speculation business?

Explanation to Section 73 states that, this section doesnot apply to shares acquired as an investment.It applies only if shares are purchased and sold i.e, when they held as stock in trade. So to become a speculation business you have to purchase and sale the share as a stock in  trade. If you treated it as an investment it wasnt a speculation loss.Please verify this. It if was investment and the loss occurred is capital loss you can revise previous year's return as capital loss, if and only if the return of the previous year is made in time as specified in section 139(1). Then such capital loss can be carry forward and setoff against current year's capital gain as per section 73A of the Income Tax Act 1961. 

Please verify and answer me if the capital gain is long term capital gain or short term capital gain? You have an another solution if it is a long term capital gain.

Hemanth, thanks for detailed info. But my issue is specific to Commodity trading which is always in F&O.

Till last year Commodity F& O trading was coming under Speculative business [because of reasons like CTT and all] but this year govt. has changed the rule and it now will be part of Capital gains.

My problem is how do i set off last 3 years losses against this years profits as income category has changed.