TREATMENT OF LOSS ON TRADING SHARES

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2011 I have a salary income 9 lacs and pension income of 60000 for 2010-11. On retirement I have takenup online trading and incurred a net loss of 30,000 till now.

Can I carry forward or take the net loss on trading by reducing the taxable income for the year 2010-11

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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31 March 2011 As far i think you have to carry forward that losses to next year as it is speculative losses that can be adjusted toward only speculative income . As you indicate that your income consists of only salary income and pension income that can not be utilized for setting off of this losses .
In the financial year 2012-13 you can adjust it with the income if you generate any income from speculative activities .

Thanks

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Pankaj Jhawar

Pankaj Jhawar (Expert)
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16 April 2011 Will this MCX circular is of any relevance????

NOTIFICATION NO
46/2009, Dated: May 22, 2009
In exercise of the powers conferred by clause (ii) in the Explanation to clause (d) of the proviso to sub-section (5) of section 43 of the Income-tax Act, 1961 (43 of 1961), read with rule 6DDB of the Income-tax Rules, 1962, the Central Government hereby notifies MCX Stock Exchange Ltd. as a recognized stock exchange for the purpose of the said clause with effect from the date of publication of this notification in the Official Gazette.
2. MCX Stock Exchange Ltd. shall separately maintain data regarding all transactions registered in the system in which client codes have been allowed to be changed for periodical inspection by the Director-General of Income-tax (Investigation) having jurisdiction over such exchange and provide copies of the relevant information as and when required.
3. The Central Government may withdraw the recognition granted to MCX Stock Exchange Ltd. if any of the conditions specified in rule 6DDA of the Income-tax Rules, 1962, subject to which the recognition is granted, is violated.
4. This notification shall remain in force until the approval granted by the Securities and Exchange Board of India is withdrawn or expires, or this notification is rescinded by the Central Government as provided in sub-rule (5) of rule 6DDB of the Income-tax Rules, 1962.

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