Set off of losses in trading equity shares

This query is : Resolved

cssunnyarora (Querist)
Follow

23 June 2013 Dear Expert,

I have already got my form 16, working in a MNC, in previous year 2012-13, I have incurred a loss of 60000, in intraday and less than 1 year scrips.
Pls suggest whether it can be claimed while filling returns so that my taxable income gets reduced by this amount.

Regards,

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

23 June 2013 Loss from trading equity shares is the speculative loss, cannot be adjusted with the Salary income. can be carry forward for 4 years and adjust with speculative income only

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

23 June 2013 Intraday means 'with a day'. Then you said scrips are one year old.

i) If it is intraday trading, with out taking delivery, follow the observation of Ramesh Ji.

ii) If the scrips are delivery based, since you said holding for 1 year, the loss is 'normal business loss' which can't be set off against salary income as per section 71(2A) of the Income tax Act,1961.

Upgrade to CAclubindia Pro. Subscribe Now!

cssunnyarora

cssunnyarora (Querist)
Follow

23 July 2013 Which ITR needs to be filled for Carry forwarding Speculative Loss