Share market income tax calculation.

Hello,

A software professional makes a revenue of 20lakhs in a year. Will use 44ada for this.
So profit is at 10lakhs.

She also does share trading.
Intraday profit: 1lakhs.
Short term capital Loss: 2lakhs.
Future and Options Loss: 3lakhs.

She used margin trading, so she was charged interest of total 2.5 lakhs.

How does this work? Which losses can be carried for how many years so it can cover next years profit(if any).

Also, where can this margin trading interest be deducted from?

Thanks for your help.

Replies (3)

yes he can use 44ada (technical consultancy and  Information technology )

both the losses u can carred forward for 4 years 

but for 44 ada conditoin is appled when loss is there or under tax audit 

loss from speculation business can be carry forward to only 4 years

Thanks for replying.

4hrs both for Short term capital losss and speculative loss?

I heard 7years for some. What is that then?

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