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Loss in future trading

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Vinod Kumar

prop

21 Points Posted on 13 March 2009

A proprietor client has professional business income during the year

He also has loss in Future Options trading which is one time only.Will the loss be treated as business loss and can it be set off against the professional loss

Also does it make a difference if the person is resident or non resident or NOR

Replies (2)

Kiran Kumar V

C.A. Final

177 Points Posted on 13 March 2009

Hello Mr. Vinod Kumar,

Your client transaction comes under the Definition" An adventure in the nature of trade", therefore it is taxable as business income or loss.

CIT Vs M. Krishna Rao 1978 A.P. H.C.

Your client Business is a speculative business. Speculative business loss can be set off only against Speculative business profit as per section 70 of I.T. Act.

Regards,

Kiran Kumar V