Set off of business loss with speculation profit

This query is : Resolved

Guest

Guest (Querist)

18 December 2010 Dear Friends / Experts,

Please express your views on the following :

A, an individual engaged in Shares Trading.

Query

A has profit on speculative transactions of Rs.65000/-.

A has loss on delivery based transactions of Rs.85000/-.

Whether A can set off this loss of Rs.85000/- with speculation profit of Rs.65000/-.

Ans : ...................

I shall wait for your views with any relevant IT sections / provisions.

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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18 December 2010 Delivery based transactions are classified under the head "Capital Gains"....
and Speculative Transactions are categorised under "Business Income"....

Losses under the head “Capital gains” cannot be set off against income under other heads of income.