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Regarding share trading taxes

24 March 2019

I have made a loss of Rs.383000 in short term equity trading(not intraday)-STT paid trades
And made profits of Rs.172000 in f&o trades in same financial year

I have to pay any taxes,As overall I am in loss.

Can I club loss and profits from the above cases??

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6 Replies

Mayur Patil (Article) (1276 Points)
Replied 25 March 2019

STCL can only setoff against STCG & LTCG

Section 43(5) which provides certain transactions not considered as speculative transactions, hence f&o income consider as business income on which you've to pay tax.

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Nikhil Kaushik (Fellow CA) (86516 Points)
Replied 19 April 2019

Not sure the linkage you have drawn between 43(5) and your understanding of set off losses within the same financial year is flawed.

The F&O income (business income) can be set off against LTCL in the same financial year. No additional tax is pauable and the balance loss shall be carried forward.

Nikhil Kaushik (Fellow CA) (86516 Points)
Replied 19 April 2019

Not sure the linkage you have drawn between 43(5) and your understanding of set off losses within the same financial year is flawed.

The F&O income (business income) can be set off against LTCL in the same financial year. No additional tax is pauable and the balance loss shall be carried forward.

Mayur Patil (Article) (1276 Points)
Replied 22 April 2019

sorry sir, kindly refer sec 70(2) & 70(3) LTCL can only be setoff against LTCG and STCL can only be setoff against any capital gain even in same financial year.

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