Hi There, Two questions: 1- I have gains from US (<1 year investment time) and some losses in F&O in India. Can these gains (from US) and losses (from F&O) be combined? 2- Can I include short term gain from US (<2 Yrs) in presumptive tax filing (which allows 6% taxation) in India? Thanks, Vishal

Hi @vishal_singh Here are the answers to your questions. 1. Income from the sale of foreign shares is a [Capital Gains Income](https://learn.quicko.com/capital-gains-and-tax#:~:text=Capital%20Gain%20is%20simply%20the,will%20have%20a%20capital%20loss.) as per the Income Tax Act. Hence, yes, you can set off your US gains against the FnO losses in India if both events have occurred in the current year. Here's a read on https://learn.quicko.com/income-tax-on-foreign-shares-us-equity-in-india#5-carry-forward-loss-for-sale-of-foreign-shares for your reference. 2. If short-term gains can be reported as business income depends on the intent of the trader. If the intent was doing trading and not investing then it can be reported under Income from Business and Profession and if the turnover is under the specified limit then you can opt for [presumptive scheme](https://learn.quicko.com/presumptive-taxation-scheme) taxation as well. Hope this helps!

Hi, I have also received demand notice for setting off current year normal business loss against first from capital gain and then from other sources. what is current year business loss set off order? ur article is not helpful in this matter. can u plz provide specific advice with proper supporting? ![susma|639x500](upload://qFCRk9jKAcT4RtPmCijjT2RI2kf.jpeg)

Hi @CA_ABHISHEK_PODDAR Section 115BBE is for tax at a special rate on income. As per the snippet attached by you, we can see that ITD is demanding tax on income chargeable under section 115BBE and could not find anything related to the set off of loss. Hope this helps.

i have Short Term Capital Loss in shares. Can we Reconcile it with STCL Against LTGC.

Hi @Aadil_Nakhwa, Yes, you can set off STCL i.e. short-term capital loss against short-term capital gain (STCG) as well long-term capital gain (LTCG). Hope it helps.

I trade in F&O both Intraday and overnight position. I do not have any other income and trade from home. I want to start a retail business and I have some question regarding taxes. 1. If I lease commercial retail property for retail business and if I do not make profit from that business, can I deduct all the expense (i.e. rent, employees salary, electricity bills) from my F&O income profit for that particular financial year? 2. F&O Intraday and overnight position both are consider non-speculative income. right?

Hi @Private 1. Income from F&O Trading & Overnight Trading is a **non-speculative** business income 2. Income from Intraday Trading is a **speculative** business income Retail business is considered a non-speculative business. As per the Income tax rules for carry forward and set off of losses, there can be inter-head set off of losses. So, profit from only FnO & Overnight trading can be set off against retail business as both are non-speculative business incomes. Read more about https://learn.quicko.com/set-off-carry-forward-loss-income-tax Hope this helps!

[quote="Shrutika_Shah, post:113, topic:345"] * F&O Trading & Overnight Trading is a **non-speculative** business income * Income from Intraday Trading is a **speculative** business income [/quote] if trade in f&o is done intraday ; then ; it is ; **speculative** or **non-speculative** ? @Shrutika_Shah @Muskan_Balar

that was my question. I think both consider as non-speculative income.

Can I set off F/O losses against capital gains?

Income Tax Act 1961 Income from Business or Profession

Nireka August 24, 2021, 12:21pm 60

Hi @NotAtAllSatwik,

In case the profit is below 6% of the turnover, and turnover below the threshold and total taxable income less than the basic exemption limit - tax audit it not applicable.

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