Given that remuneration taken from LLP is treated as business income, does it mean that a person can offset loss form derivatives trading with remuneration taken as a partner of LLP?
Partner Remuneration is treated as a business income in the hands of the partner. Loss from derivatives trading is a non-speculative business loss. Non-Speculative Loss can be set off in the current year against any income except Salary. Thus, it can be set off against remuneration income. The remaining loss can be carried forward for 8 years. You can read more about set-off and carry forward of loss here.