Question: My wife deals in future and options in shares and also does some intraday transactions on stock exchanges. I want to know how the income tax liability in respect of these transactions is calculated. However, if no interest is charged on the loan given, the tax officer can apply Section 60 of the Income Tax Act and club her income with your income. Since no delivery is involved in intraday transaction such transactions are treated as speculative transactions. Such loss will have to be carried forward for four years to be set off against speculative income of those years.

Source: Mint June 05, 2021 05:28 UTC