Section 73 of ITA, 1961 : Section 73: Losses In Speculation Business

Explanation using Example

Imagine a trader, Mr. A, who engages in speculative trading in the stock market. In the financial year 2022-2023, Mr. A incurs a loss of INR 100,000 from his speculative trading activities, which is considered a speculation business under the Income-tax Act, 1961. He also has a separate textile business that made a profit of INR 200,000 in the same year.

Under Section 73(1) of the Income-tax Act, Mr. A cannot set off his speculative loss of INR 100,000 against the profit of INR 200,000 from his textile business because the loss is from a speculation business and can only be set off against profits of another speculation business.

Since Mr. A does not have any othe...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.