Calculating short term, speculative and f/o income.

M Agarwal (Consultant) (228 Points)

06 June 2017  

Hello,

A person has a source of professional income.

He makes some money in short term and speculative trading, but looses money in Futures and Options.

Charges incurred during the process:
a) Brokerage on sale and purchase.
b) Service Tax on brokerage.
c) STT.
d) Stamp Duty
e) Other charges( Sebi turnover charges etc)
f) Demat Charges.
g) Interest on margin trading.

My question are:
1)which items from the above can be deducted from the trading income. I understand STT is not deductable, what about others. Specially the interest paid is a huge amount which turns all the trades into a loss.
2) Can the F/Q loss be carried forward? If not, can it be crossed with some other income?

Please provide relevant sections if you know them.

Thank you.