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Income tax help

Chintan (Executive) (24 Points)

06 June 2011

My income is close to income tax limit if i have loss in stock trading then should i deduct the loss from income? and as insurance agent insurance company had deducted tds from commision. I want to claim that tds is it compoulsory to file a return?

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4 Replies

M. N. JHA (CA) (8316 Points)
Replied 07 June 2011

U not mention source of income and nature of stock trading loss. . . . so if u want to know about setoff mention it. And for claiming tds return filling is compoulory. . . . . . . . .

SAMAR JEET SINGH (CA) (72 Points)
Replied 07 June 2011

Hi Chintan,

I agree with Mr. Jha it is difficult to answer with limited details.

However I will try to answer your query as to set-off by taking assumptions

1. Assuming the loss is short term or long term loss (trading in stock) and commission income exceeds the exemption limit. As per section 74 Short term capital loss can be set off against any other short term or long term capital gain and Long term loss can be set off against only Long term capital gain. Such losses can be carried forward for next 8 Yrs.

2. Assuming losses falls under the speculation business (trading in stocks without taking delivery) than too they cannot be deducted against the commission income, as per section 73 they can be set off against the income from any other speculation business income or if not possible than carry forward for next four years.

I hope that will be of some help to you.

Warm Regards.

amit jain (Chartered Accountant) (532 Points)
Replied 12 June 2011

well loss on stock trading cannot be setoff against any other heads and to claim refund of tax you need to file return

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 13 June 2011

Originally posted by : Chintan
	My income is close to income tax limit if i have loss in stock trading then should i deduct the loss from income? and as insurance agent insurance company had deducted tds from commision. I want to claim that tds is it compoulsory to file a return?