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F&O -Loss whether STCL/BL

Patricia (C.S.- Professional) (sdd) (197 Points)

09 July 2009

I indulge in day trading in the cash market and also in the futures and option (F&O) segment. Under which head of Income, the same is considered. My Loss is Rs. 1.70 lacs in the last FY 08-09?

Is is Short Term Capital Loss or Non-Speculative Business Loss ??? What is Speculative Activity and Non_Speculative Activity ? How I ‘ll treat this loss in my IT Return ?

Thanks and regards,

Deepak Vats

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3 Replies

CA Shailesh +91 9393926464 (Chartered Accountant) (2088 Points)
Replied 09 July 2009

Dear Mr. Vyas,

Loss from F & O Trading is to be considered as non-speculative business loss

and

Profit/Loss from day trading in cash market is to be considered as speculative business loss

and accordingly the Return need to be prepared. Also, there are chances that ur business turnover crosses the limit for tax audit. So, determine that also....