Set Off

This query is : Resolved

Rajesh Goyal (Querist)
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25 November 2009 Dear Experts,
An assessee is having Future and Options business loss of Rs. 20 lacs and capital gain worth Rs. 10 lacs.

Can such business loss be set off against capital gains...????

C.A.Amitabh Gupta

C.A.Amitabh Gupta (Expert)
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25 November 2009 The loss from Futures & Options ( Derivative trading ) business is not a speculation business but and a regular business as per section 43(5) w.e.f AY 06-07. Hence Loss from it can be set-off from Capital Gain as per proviso of section 71

rgds/
CA AMitabh Gupta
Indore
09893276187

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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25 November 2009 agree

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Juzer Sadikot

Juzer Sadikot (Expert)
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25 November 2009 Dear Mr. Rajesh,

Setoff would be allowed only incase the loss is incurred on transactions of Derrivate (F&O) value of which are derrieved from underlying Securities.

Loss from transaction of Future in MCX shall be considered as Speculative and shall not be allowed to offset only agains speculative gain.

Regards
Juzer