can we show future/option loss to reduce the tax liability?
If person have business income along with that he is doing future/option trades.
so can we reduce our tax from future/option losses against business income ?
8 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 28 February 2021
No you cannot claim or set off loss from futures/option from business income. As it is a speculation loss it should be set off from any speculation income
pr br
(319 Points)
Replied 28 February 2021
| Originally posted by : Sourav | ||
 |
No you cannot claim or set off loss from futures/option from business income. As it is a speculation loss it should be set off from any speculation income |  |
bro please check again, I read that future & options trading loss can be filed as business loss, they are not under speculative.
other senior members of CAclub please guide. please
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 28 February 2021
Yes as future and options loss are derivative in nature they can be adjusted as business loss
Kapadia Pravin
(17259 Points)
Replied 28 February 2021
Future options is a trading activity and hence it is normal business profit or loss. The said loss can be set off against any other business profit.
SUSHANT BIDAYE
(597 Points)
Replied 28 February 2021
Yes. Future &option is business activity and loss can be set off like any other business loss.
pr br
(319 Points)
Replied 01 March 2021
future option trades under MIS intraday segment is also considered non speculative ?
| Originally posted by : SUSHANT BIDAYE | ||
|
Yes. Future &option is business activity and loss can be set off like any other business loss. | |
future option trades under MIS intraday segment is also considered non speculative ?
Practitising CA
(57 Points)
Replied 01 March 2021
It is considered as Business loss so you can claim it as Business loss.
pr br
(319 Points)
Replied 01 March 2021
@ practising CA , future option in all segments is under non speculative , sir ?
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