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Futures loss

21 January 2013

A company engaged in business of trading shares has incurred a loss in futures trading...can it be booked as loss in P&L or is it a speculative business loss? Reply asap

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BRILLIANT STUDENTS ACADEMY (.) (35 Points)
Replied 21 January 2013

speculative income in case of companies.

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CA. Kunal Lakhotia (ACA) (1006 Points)
Replied 22 January 2013

u mean speculative loss? it can't be booked in P&L of a share trading co.???

BRILLIANT STUDENTS ACADEMY (.) (35 Points)
Replied 22 January 2013

yes sir it can be set off against speculative income only.

CA. Kunal Lakhotia (ACA) (1006 Points)
Replied 23 January 2013

But if a co is dealing in all this as it's business then it can book it in p&l

Parimel (Administration) (41 Points)
Replied 23 January 2013

please check section 43(5)(d) of the income tax act and if the transaction falls under that category, the transaction will not be a speculative transaction.

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