09 July 2009
Please tell me the treatment of F&O trnsactions.Whether it is a speculation business or an ordinary one for carry forward of business losses.Kindly specify notification no (if any) in this regard.
09 July 2009
More specifically proviso (d) to section 43(5) of the IT Act,1961.
Dealings in derivatives is a kind of transaction which does not involve any purchase and sale of securities and,therefore, loss/profit on a/c of F&O transactions cannot be treated as speculative.
Citation:-RBK Securities(p) Ltd Vs. ITO 13 DTR 255(Mum-Tri).
CAclubindia
