Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(171558 Points)
Replied 30 March 2018
Its not deduction, but loss adjustment.
F&O transaction are treated as business income under head 'PGBP'
Loss incurred under the head, ‘Profit and gain of business or profession' in any assessment year is allowed to be set off from income under any other head except income from salary, as per Section 71(2A) of the Income Tax (IT) Act, 1961.
Also, if loss under, ‘Profit and gain of business or profession' cannot be set off in the same assessment year because the assessee does not have any other income or the income was less than the loss, then such loss can be carried forward and set off only against business income of the subsequent assessment year, as per Section 72 of the IT Act. Such carry forward is permissible for eight years.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
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