CAN PROFIT IN STOCK(DERIVATIVE) US MKT BE OFFSET WITHC/F LOSSES IN DERIVATIVE INDIAN MKT, Income Tax

[satinder chadha]

X is an Indian  proprietary concern which has c/f losses in Indian derivative market .  X trades in United States derivative market as an individual and has profits. Can X offset his proprietary concern derivative losses with profits from individual account in derivative trading in USA?

Posts / Replies

[Deepak Nagori]

Dear Satinder,

Income tax Act does not make any distinction for profits / losses in India or in foreign countries for residents. So assuming X is a resident, he can offset the losses in India from profit in foreign country. Also derivative transactions are not speculative transactions u/s 43(5). Hence b/f losses upto 8 years before are eligible for set off against the foreign profits.

Regards

CA Deepak Nagori

[satinder chadha]

Thank you sir.I am overwhelmed by  the pain you have taken to answer the question.Thank you sir  once again.