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Loss in future/option trades and income tax

pr br (317 Points)

27 February 2021  
can we show future/option loss to reduce the tax liability?

If person have business income along with that he is doing future/option trades.

so can we reduce our tax from future/option losses against business income ?

 8 Replies

Sourav (Student) (23912 Points)
Replied 28 February 2021

No you cannot claim or set off loss from futures/option from business income. As it is a speculation loss it should be set off from any speculation income

pr br (317 Points)
Replied 28 February 2021

Originally posted by : Sourav
No you cannot claim or set off loss from futures/option from business income. As it is a speculation loss it should be set off from any speculation income

bro please check again, I read that future & options trading loss can be filed as  business loss, they are not under speculative. 

other senior members of CAclub please guide. please

Sourav (Student) (23912 Points)
Replied 28 February 2021

Yes as future and options loss are derivative in nature they can be adjusted as business loss
1 Like

Kapadia Pravin (17209 Points)
Replied 28 February 2021

Future options is a trading activity and hence it is normal business profit or loss. The said loss can be set off against any other business profit.

SUSHANT BIDAYE (503 Points)
Replied 28 February 2021

Yes. Future &option is business activity and loss can be set off like any other business loss.

pr br (317 Points)
Replied 01 March 2021

future option trades under MIS intraday segment is also considered non speculative ?

Originally posted by : SUSHANT BIDAYE
Yes. Future &option is business activity and loss can be set off like any other business loss.

 

future option trades under MIS intraday segment is also considered non speculative ?

Practitising CA (57 Points)
Replied 01 March 2021

It is considered as Business loss so you can claim it as Business loss.
1 Like

pr br (317 Points)
Replied 01 March 2021

@ practising CA , future option in all segments is under non speculative , sir ?

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