adjustment of salary income agt losses from derivatives

This query is : Resolved

Vilas Waghule (Querist)
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21 July 2009 Can derivatives losses be shown as income/(loss)from other sources so as to adjust agt salary income?Business income cannot be adjusted agt salary income.

Abhishek Mohta

Abhishek Mohta (Expert)
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21 July 2009 Hi Vilas,

Derivative Transactions have been declared as Speculative Transactions in Income Tax Act.

So the losses from derivative have to be claimed under the head Profits and gains from Business or Profession and can be adjusted against Gains from such transactions only. Moreover, these losses can be carried forward for next 4 assessment year only.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 July 2009 Loss from derivative transaction cannot be set off against salary income since the said loss should be considered under the head 'Income from profits and gain of business or profession'. Moreover such transactions comes under normal business and not speculative business.

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