Скачать или смотреть Is F&O loss speculative in nature??

‪@Financewithishant‬ ‪@zerodhaonline‬ ‪@nikhil.kamath‬
Tax Treatment of F&O Transactions under the Income-tax Act, 1961 (India)
✅ 1. F&O Transactions Not Speculative – Section 43(5)(d)
As per Section 43(5) of the Income-tax Act, 1961:

A "speculative transaction" means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips.

Provided that, for the purposes of this clause—
(d) an eligible transaction in respect of trading in derivatives referred to in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956, carried out in a recognized stock exchange shall not be deemed to be a speculative transaction.

Therefore, Futures and Options (F&O) transactions on platforms like NSE or BSE are classified as non-speculative business transactions.

✅ 2. Set-off of F&O Losses – Sections 70 & 71
Under Section 70 (intra-head set-off) and Section 71 (inter-head set-off):

A non-speculative business loss (such as F&O losses) can be set off against:
Any other business income
Income from other heads except salary income
This means F&O losses can be adjusted against capital gains, house property income, or other business/profession income in the same assessment year, but not against salary income.

✅ 3. Carry Forward of Loss – Section 72
As per Section 72(1):
If a non-speculative business loss is not fully set off in the current year, it can be carried forward for up to 8 assessment years, but it can be set off only against business income in those future years.

Important Conditions:

The return must be filed on or before the due date under Section 139(1)
The loss cannot be set off against capital gains, income from house property, or any other heads in future years
#FandO #IncomeTaxIndia #Section43 #BusinessLoss #TaxPlanning #CarryForward #SetOff #FuturesAndOptions #TaxFiling #StockMarketIndia #ITR2025 #IndianTaxLaw #capitalmarkets