Loss in share market offset against investment ....

Dear All,


I have few question in my mind can any1 of pl clarify...?

1) I have made a loss of 20,000 rs in furure trading(Derivative) and my annual CTC is 2.5 lakhs rs so can i offset this loss in my taxable income?if yes under which section?

2) Suppose even if i can/cant offset this against my taxable income then what documents are require to file in income tax return to show my loss ?(I have heard that we can carry forward this kind of loss upto 4 years,is it true)

3)On other side i have made profit in delivery share of 2000 Rs so where should i consider this?


Please advice me...this is very urgent...I will be grateful to you all....

Profit or Loss from market falls under "Income from other soruces" category. The loss can be offset only with the income in this category. You can't offset it with Income from Salary.

From IT perspective, they only look at short term capital gain/loss which is less then 1yr holding and long term capital gain/loss where holding period is > 1yr.
Short term loss can be adjusted against short term gain in following years.. They can't be adjusted with Long term gain.

I am not sure about the documentation that is required as per rules. but my CA has been attaching the transaction summary for long term txns and short term txn summary along with my returns.

PS - I am not qualified person, but just an experienced person. Please consult some qualified person.

Dear Harsh,

It should go in business income and loss and not income from other sources....Further salary is not allowed to be set off from business income...

Thanks both of u 4 replying

Is it possible to set of the long term equity and mutual funds capital loss ?

Thank you
Santhakumar