What is income tax rule for speculative income

Dear Sir,

 

What is the Income Tax rule for speculative Profit/loss ...I mean is it possible to set off the loss from equities (short-term/bought/sold same day or within 10-15 days) against profit from Futures/options ?

Actually,  I made a loss of 8  lacs in spectulation of equities whereas on the other hand I made profit of Rs. 5-6 lacs in futures/options , now the position is I am in net loss & want to carry-over the loss to next year, but my accountant says the loss from equity can not be set of against profit from futures......., I have to pay the tax on profit from F&O and may carry over the  loss to next year.  

 

Regards.

Replies (3)

Yes your CA is absolutely right!.

The definition of sepculatiive is very clearly laid down in section 43(6) where the gist is that wherever the trnsactions of buy/sell are settled by paying the difference instead of actual delivery of the goods/shares etc. such transactions are speculative.

Futures/Options i.e derivatives are specifically excluded from the ambit of speculative transactions.

 

FUTURE & OPTIONS   ( F & O ) IS NOT A DELIVERY BASE TRADING SO IT IS CLEARLY SPECULATIVE INCOME AS PER SECTION 43 (5) AND AS PER SECTION  73 YOUR ANOTHER INCOME DERIVES FROM SPECULATION  CAN BE SET OFF WITH  F & O INCOME . 

Thanks Rajgopal Krishan R  Jee & Subhash Jee.

 

  

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