Comment on Taxation Simplified

Nithin Kamath commented on 08 Feb 2013, 04:12 AM

Thanks Vinay,

Yes you can change yourself from a trader(trading as a business) to an investor or vice versa when filing your returns from one year to another. But to do this there has to be some kind of justification, in your case if you stop trading, definitely you can say that you have gone from being a trader to an investor.. Our advise is to not do it frequently and not to do it for mere tax planning, it will show up in the future..

Since you have already filed your loss, you can keep netting it off even when you convert yourself from trader to investor.. You anyways get the benefit for the next 8 years to set off your losses.

Yes you can adjust your trading losses to dividend and interest income.

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