Specific query regarding taxation

General
1

Hi All,

I have gone through the zerodha varsity taxation modules and the blog as well. I am looking for a specific answer to the below question. If anyone could answer and provide the reference to it, I would really appreciate it. Looking for an answer urgently!

I have considered myself as a trader…
Q1. Can Speculative business profit be set-off against Non-speculative business losses in the same year?
For Ex, I have X amount of speculative profit and -Y amount of Non-speculative loss. So, can I show X-Y as resulting loss, provided |X| < |Y| and carry it forward to coming years?

Q2. Also, can Non-speculative business profit be set off against Speculative business losses in the same year?

Regards,
Mangesh

2

hElLO tRaDeR,

1) YES. 

2) NO.

Source

1 Like
3

Hi portfolioplus911,
Thank you for answering the questions!!!
Is it possible for you to provide a reference as well?
Regards,
Mangesh

4

Hi, Reference ?

5

Hi portfolioplus911,
This helps… Thank you so much!!!
Regards,
Mangesh