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Short Term and Long Term Loss Claim

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Mohit Gupta

11 Points Posted on 12 July 2023

This is regarding stock trading where in short term there is profit of 90k and in long term there is loss of 2.50 Lakhs in last financial year. During the last FY, I have done margin trading whereon interest of Rs 1.25 Lakhs(Additional Loss) was charged by trading firm. So my query is can i carry forward this additional loss of 1.25 Lakhs along with Long term loss so that in future I can set off this loss in case of long term profit which I assume to come around 5 Lakhs in current year.

Replies (5)

Quick Summary

This discussion clarifies how to handle stock trading losses for tax purposes. It addresses a scenario with short-term profits and a significant long-term loss, including margin trading interest. The advice explains that margin interest can be treated as a speculative business loss, which can be offset against future speculative business profits within four years, but not against long-term capital gains.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 12 July 2023

No. Not with LT capital loss...

But you can carry forward as speculative business loss.

Mohit Gupta

11 Points Posted on 13 July 2023

If I carry it as business speculation loss then can it be adjusted against business profit if I earn profits in shares this current year. But this profit will be long term capital gain but yes in shares.

Means speculation business profit.