Comment on Taxation Simplified

Nithin Kamath commented on 14 Mar 2013, 10:32 AM

Hi Venky,

Firstly, if you are working in central Govt/PSU, you need to first check if your allowed to trade in the stock markets. Certain govt organizations don’t allow you to.

The thing to remember is you cannot declare yourself as a trader/investor just to plan your taxes. If you have been investing into the markets ( long term, holding for more than 1 year) you ideally should not suddenly declare yourself as a trader just because there was a loss that you want to adjust with your other income.

Yes you can declare yourself as a trader with the above condition in mind.

As a trader you can set off the losses against interest income, but as an investor if this is your long term loss you cannot set it off against anything else.

Long term losses cannot be carry forwarded as well.

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