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Regarding share trading taxes

303 views 6 replies

Natraj Vaithianathan

31 Points Joined December 2017

I have made a loss of Rs.383000 in short term equity trading(not intraday)-STT paid trades
And made profits of Rs.172000 in f&o trades in same financial year

I have to pay any taxes,As overall I am in loss.

Can I club loss and profits from the above cases??

Replies (6)

Mayur Patil

Article

1276 Points Joined October 2018

STCL can only setoff against STCG & LTCG

Section 43(5) which provides certain transactions not considered as speculative transactions, hence f&o income consider as business income on which you've to pay tax.

Nikhil Kaushik

Fellow CA

86876 Points Joined June 2009

Not sure the linkage you have drawn between 43(5) and your understanding of set off losses within the same financial year is flawed.

The F&O income (business income) can be set off against LTCL in the same financial year. No additional tax is pauable and the balance loss shall be carried forward.