hi
this is pinky prajapati from ahmedabad.
my qyery is :
An individual generates loss from speculation of shares. whether this loss can be considered as normal business loss and can be set off against profit from other business or profession?
if there is any circular or notification in this regard, please refer.
Thank u.
Speculation loss only can be set off with speculation income..
As per section 73 loss from a speculative business can be set off only against income from a speculative business (it may be the same or some other speculative business).
Pinky what do u mean by speculation of shares.........?
What do you mean by Speculation of Shares? Whether transactions entered into are in the nature of intraday trading or future and option?
If it is intraday trading - Speculative Business - Loss can be set off against Speculative Income only.
If it is future and option - Does not amount ot speculative transaction (Ref. Section 43(5) of the Act) - Normal Business Income. Loss from it can be set off against normal business income as well as speculative income.
| Originally posted by : Ravindra Manek | ||
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What do you mean by Speculation of Shares? Whether transactions entered into are in the nature of intraday trading or future and option? If it is intraday trading - Speculative Business - Loss can be set off against Speculative Income only. If it is future and option - Does not amount ot speculative transaction (Ref. Section 43(5) of the Act) - Normal Business Income. Loss from it can be set off against normal business income as well as speculative income. |
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speculation business loss can be set of againt speculation business only n can be carry forward only for 4 years
Sanjeev,
If the person has only salary income and does some intraday share trades, how should he report the loss from dattrading of shares.
Is that transaction termed as "speculative transaction" or it is " Speculative Business". The person is an employee and does not have any business.
What ITR form needs to be filed and where should the speculative loss be reported in the ITR form.
Thank you
NTP
CAclubindia
