Case AQ - Can we set off the business loss of share trading (STT paid) with LTCG in the same year. Since company is a investing company and share trading is included in the other objectives of the company. Solution - By Amlan Dutta If it investing company , then shares form a part of stock in trade ...so income from it shall be treated as business income ...however note that LTCG (STT paid ) is exempt ....in such case , then business loss cannot be set off ...however if LTCG is without payment of STT , then business loss can be set from LTCG ....( now please also understand that when you say business i am presuming business which is non speculative and non specified ----i.e i am considering ordinary business --- note for purposes of the act , Futures and options / commodities trading is considered ordinary businesss whereas intraday trading is cosnidered speculative business ----implying F &O losses can be set of from permissible heads whereas specuiative losses can be set of only from speculative gains ) .....(Note,business losses can be set of from any head other than salary ...so it can be set of from capital gains head ...however if the CG is exempt , then no ! So figure that part out and you shall have your asnwer !
Posted on: Wed, 20 Aug 2014 09:40:23 +0000
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