STCG query

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I was done shares trading in STCG. so
loss in intra day and short term shares sell
so shall I shown in tax return in CG sheet
as loss under STCG. pl help with more details
Replies (4)

Speculative Business income: Profit from intraday trading is categorized under speculative business income.Tax treatment is similar to your Business income tax. It istaxed as per the tax slab you fall in while losses can be offset only against speculative gains.

YES U HAVE TO SHOW THE LOSS AND ONLY CAN BE SET - OFF ONLY INTRA HEAD WITH SPECULATIVE BUSINESS

Intra Day Share Trading Loss is Speculative Business Loss under PGBP Head. 

Short Term Share Trading Loss is Short Term Capital Gain Loss under Capital Gain Head. 

Show the loss under the respective head as above and carry according to Income Tax Act. Speculative Loss carry forward for 4 years and set off against profit of the speculative business. Short Term Capital Loss set off against Short Term Profit. 

 

Prepare a consolidated STCG excel statement of showing your share tradings during the Financial year where the shares were held less than one year.

Assemble all STCG buy line items in upper table.

Assemble all STCG sell line items in lower table.

Sum both the table. Net STCG will be available for you to report in Schedule CG.

Remember that Short Term Capital Gains can be offset with only Short Term Capital Loss of that year or previous 7 years.

You maybe able to Carry Forward STCL ahead.


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