Suraj (819 Points)
05 May 20111) Suppose, a person has Short term capital loss of Rs. 8 lacs and speculation income from day trading of shares is of Rs. 2 lacs then how the tax is computed? at what tax rate?
2) Which ITR is to be used?
3) Instead of short term capitla loss, had it been short term capital gain of Rs. 8 lacs from shares and speculation income from day trading of shares is of Rs. 2 lacs then how the tax is computed?at what tax rate?
ABHISEK TOSNIWAL
(CA in Practice)
(638 Points)
Replied 05 May 2011
LOSS ON ACCOUNT OF SPECULATION CAN BE SET OFF ONLY AGAINEST PROFIT FROM SPECULATION. AGAIN SHORT TERM CAPITAL LOSS CAN BE SET OFF ONLY AGAINEST SHORT TERM CAPITAL GAIN AND LONG TERM CAPITAL GAIN. THEREFORE THE SHORT TERM CAPITAL LOSS CANNOT BE SET OFF AGAINEST SPECULATION PROFIT AND NOR THE SPECULATION LOSS BE SET OFF AGAINEST SHORT TERM CAPITAL GAIN.
REGARDS.
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