ITR submitting: Can I set off inventory market losses in opposition to my wage?

Can I set off the losses incurred by me on inventory market transactions in opposition to my wage whereas submitting earnings tax returns? 

The earnings from inventory markets transactions can both be taxed beneath the top “Capital good points” or “Profits and gains of business and profession” relying on whether or not the transactions are of funding in nature or are carried out as enterprise exercise. 

Whether the identical could be taxed as enterprise earnings or capital good points would rely upon varied elements like common holding interval of the investments, supply of cash invested, the quantity of the transactions, the intention behind making the investments and many others. It can solely be selected the idea of the information of every case. Intraday transactions (the place the transactions are squared up with out precise supply) in shares are handled as a speculative transaction and any loss if incurred on intraday transactions can solely be adjusted in opposition to another speculative transaction whether or not on commodity or on shares.

This can not even be adjusted in opposition to earnings out of your common enterprise actions. Any loss aside from intraday transaction in shares will be set off in opposition to earnings from another head besides in opposition to your wage earnings in case such transactions are handled as enterprise and never as an funding. If the transactions are handled as investments any loss from such transaction can solely be set off in opposition to capital good points and can’t be set off in opposition to another head. 

So any loss incurred by you out of your share transaction beneath each the top “Capital good points” and “Profits and Gains of business or Profession” can’t be set off in opposition to your wage earnings throughout the present 12 months. However, any loss beneath each the heads which can’t be set off throughout the 12 months are allowed to be carried ahead for set off in opposition to the earnings beneath the identical head for the prescribed interval. 

Balwant Jain is a tax and funding skilled and will be reached on jainbalwant@gmail.com and @jainbalwant on Twitter.

Subscribe to Mint Newsletters * Enter a sound e-mail * Thank you for subscribing to our publication.

Never miss a narrative! Stay linked and knowledgeable with Mint.
Download
our App Now!!