Comment on Taxation Simplified

Santosh commented on 01 Feb 2013, 05:05 PM

Appreciate this initiative to support members with their taxation queries 🙂

My question is related to declaring the loss in derivative trading. It is mentioned above that “Any loss is a business loss and this can be net off against any income other than salary either in the same year or if you file your losses in time anytime in the next 8 years. So if you made Rs 10,00,000 loss trading derivatives and Rs 20,00,000 in other income (excluding salary), your taxable income would be on Rs 20,00,000-Rs10,00,000 = Rs 10,00,000 only.”
– Say, I have a loss of Rs 50,000 in derivative trading. I have bank deposits which return Rs 75,000 as annual interest. So, can I declare my income from sources other than salary as Rs 25,000 (75k – 50k) now?

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