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 ?
Replies (8)
Quick Summary
This discussion clarifies whether losses from future and option trades can be used to reduce tax liability when an individual has business income. Initially, it was suggested that these are speculative losses and can only be offset against speculation income. However, further input indicates that future and option trades are generally considered a business activity, meaning losses can be treated as business losses and offset against other business profits, including those from a primary business.
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
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