Speculation Loss vs. Capital Loss?
This query is : Open
18 November 2008
What is the difference between Speculative Loss & Capital Loss?
Under what circumstances loss on sale of shares be considered as speculative loss and when shall it be Capital Loss?
Regards,
Shefali.
Under what circumstances loss on sale of shares be considered as speculative loss and when shall it be Capital Loss?
Regards,
Shefali.
18 November 2008
Loss from a speculative business is speculation loss while loss suffered by in a sale cum transfer of a capital asset is capital loss.
Profit from a business of shares may be classified as Speculative and Non-speculative Profit/loss.
Profit from delivery transactions and derivative trades is Non-speculative while profit or loss from jobbing is speculative in nature.
Profit from a business of shares may be classified as Speculative and Non-speculative Profit/loss.
Profit from delivery transactions and derivative trades is Non-speculative while profit or loss from jobbing is speculative in nature.
18 November 2008
If an assesee owns the business of dealling in shares & securities then treat it as Speculative Business and if it an investment then it is capital assei for an assessee
18 November 2008
Dealing in shares without actual delivery of the same is speculation business u/s 43(5) of the act. The loss arises from the said is speculative loss otherwise capital loss.
18 November 2008
speculative loss is the end result of speculative business .It is arising out of speculative transaction.
Where as capital loss arising out of transfer of capital asst less than its cost of acquisition or fair market value.
Capial loss can be classified as long term capital loss and short term capital loss
Where as there are no classification of speculative loss as long term and short term speculative loss.
The capital loss can be set off against other income.
The speculative loss can be set off against sspeculative income only and not any other income as it is treated as separate transaction.
If the assesee is held the capital asset as investment then loss can be classifed as speculative
Where as the share is held as business asset then the loss shall goes to profit and gains from business and profession.
Where as capital loss arising out of transfer of capital asst less than its cost of acquisition or fair market value.
Capial loss can be classified as long term capital loss and short term capital loss
Where as there are no classification of speculative loss as long term and short term speculative loss.
The capital loss can be set off against other income.
The speculative loss can be set off against sspeculative income only and not any other income as it is treated as separate transaction.
If the assesee is held the capital asset as investment then loss can be classifed as speculative
Where as the share is held as business asset then the loss shall goes to profit and gains from business and profession.
18 November 2008
speculative loss is the end result of speculative business .It is arising out of speculative transaction.
Where as capital loss arising out of transfer of capital asst less than its cost of acquisition or fair market value.
Capial loss can be classified as long term capital loss and short term capital loss
Where as there are no classification of speculative loss as long term and short term speculative loss.
The capital loss can be set off against other income.
The speculative loss can be set off against sspeculative income only and not any other income as it is treated as separate transaction.
If the assesee is held the capital asset as investment then loss can be classifed as speculative
Where as the share is held as business asset then the loss shall goes to profit and gains from business and profession.
Where as capital loss arising out of transfer of capital asst less than its cost of acquisition or fair market value.
Capial loss can be classified as long term capital loss and short term capital loss
Where as there are no classification of speculative loss as long term and short term speculative loss.
The capital loss can be set off against other income.
The speculative loss can be set off against sspeculative income only and not any other income as it is treated as separate transaction.
If the assesee is held the capital asset as investment then loss can be classifed as speculative
Where as the share is held as business asset then the loss shall goes to profit and gains from business and profession.
18 November 2008
Thanks to all for the clearing the doubt.
19 July 2009
IF capital loss can be set off against any other income..
then
most of the loss in forex/commodity is only a capital loss.
and
it can very be adjusted in any other income..
Vow..!! wondering.. it cannot' be..
Please refer and get us back..
then
most of the loss in forex/commodity is only a capital loss.
and
it can very be adjusted in any other income..
Vow..!! wondering.. it cannot' be..
Please refer and get us back..
19 July 2009
IF capital loss can be set off against any other income..
then
most of the loss in forex/commodity is only a capital loss.
and
it can very be adjusted in any other income..
Vow..!! wondering.. it cannot' be..
Please refer and get us back..
then
most of the loss in forex/commodity is only a capital loss.
and
it can very be adjusted in any other income..
Vow..!! wondering.. it cannot' be..
Please refer and get us back..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
