InvestorQ : Can losses from intraday trading also be carried forward like other losses on STCG and LTCG?
Lavanya Subramanian made post

Can losses from intraday trading also be carried forward like other losses on STCG and LTCG?

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Aashna Tripathi answered.
3 years ago
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Intraday trading is not done with the objective of making gains in the long term and is done without the intent of taking delivery of shares. That is what it means when you select MIS order, it clearly means that you don’t intend to take delivery and want to square off the same day. Therefore, it is considered speculation. Therefore, income from intraday trading is either speculation gain or loss, which comes under the business income category.
While capital gains from equity are taxed at concessional rates or are exempt from tax, gains from speculation in the equity market are taxed at normal slab rates. Also, losses arising from intraday trading are allowed to be set off only against profit from any other speculative business. If you are unable to set off losses from speculative investments in the year of occurrence, you can carry forward it to the next 4 assessment years. Watch the difference here. It is not carried forward for 8 years like in STCG and LTCG. You can carry forward speculative losses only for 4 years and only write them off against speculative income. To carry forward the losses, you must disclose them in your ITR. If speculative losses are not shown in the ITR then the claim for loss write off will be clearly rejected.
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