Losses in Speculation Business - Section 73

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..... t year only against the income of any speculation business. Such loss is allowed to be carried forward for 4 AYs immediately succeeding the AY for which the loss was computed. Section 43(5): defines a Speculative Transaction to mean a transaction in which a contract for purchase or sale of any commodity, including stocks and shares is periodically or ultimately settled otherwise than by actual de .....

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..... business to the extent to which the business consists of sale and purchase of shares. This shall not apply to the following companies: * Investment Company i.e. the company whose total income mainly consists of income from House Property, capital gains and income from other sources. * Company whose principal business is of Banking or of granting loans and advances. * Company whose principa .....

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..... or sale and purchase of shares. The said explanation is not applicable if the company is in the business of sale and purchase of units, debentures. Exceptions to Speculative Transactions: * Hedging contract in respect of raw materials or merchandise * Hedging contract in respect of stocks and shares * Forward contract * Trading in derivatives * Trading in commodity derivatives
Manual .....

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