set of loss

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Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2011 can loss of commodities will be set off against profit of depreciable assets in the same year

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 January 2011 Loss of commodities, if it is not a speculative loss, or it is a loss incurred in MCX, can be set off against STCG
in the same year.

Juzer Sadikot

Juzer Sadikot (Expert)

30 January 2011 Respected Paras Bafna Sir

Would like to have your expert opinion on whether:
1) Loss incurred in MCX (without actual delivery) would be Speculative loss?
2) If not, under what circumstances?

Thanks and regards
Juzer

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 January 2011 MCX is now a Recognised Stock Exchange.
*
By the virtue of S.43(5) eligible transactions of trading in derivatives in recognised stock exchanges are not treated as speculative business transactions.
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Hence loss incurred in MCX is not a speculative loss.
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You can say it is at par with loss incurred in F&O.

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