General Trading Chat

[travi]

I have a small doubt. In the financial year, I make 3K in getting IPO and then selling it on the listing day. Over the course of the financial year, I lose 3000 in options. Am I supposed to declare the same while filing returns? And as overall there is no profit no loss, I dont have to pay tax, right?

The unfortunate part of this post is that it wont go your way.

Sell and Gain from IPO is a sale of EQ which is Speculative income while loss/gain from F&O is non-speculative.
They cannot be offset against each other.

 

[Smart_trade]

I have a small doubt. In the financial year, I make 3K in getting IPO and then selling it on the listing day. Over the course of the financial year, I lose 3000 in options. Am I supposed to declare the same while filing returns? And as overall there is no profit no loss, I dont have to pay tax, right?

Yes,both to be declared in your Income Tax returns in my view.

3 K profits made is a short term profit and you have to pay tax on it. 3K loss is options loss or derivative loss which is a business loss which can be adjusted against business profits or carried forward for 7 years I think.

Smart_trade

 

[Sidz]

The unfortunate part of this post is that it wont go your way.

Sell and Gain from IPO is a sale of EQ which is Speculative income while loss/gain from F&O is non-speculative.
They cannot be offset against each other.

In this case, if I lose 3000 selling other stocks, then?

 

[travi]

In this case, if I lose 3000 selling other stocks, then?

See, what your intent was is correct, only the direct offset is what I was explaining.
So if you make 3k gain and 3k loss from options, both are added to your other income and finally your IT is computed. Here they will set-off.

What will be noted is that you have gained inr. 3k from STCG which is flat 15% for gain from delivery based EQ which is also non-speculative.

A small correction to earlier post, I referred to it as speculative which was actually supposed to be STCG. So what I meant is STCG should be applicable if the transaction occurred within 1yr.

In this case, if I lose 3000 selling other stocks, then?

The earlier assumption by me was intraday EQ trades.
Just to be clear, Intraday EQ trade is speculative including STBT/BTST but
Delivery based EQ is also non-speculative.

Speculative losses/gains can be offset only by other speculative gains/losses for upto 4yrs.

 

[timepass]

A new listing will probably not end up in F&O, hence hypothetical question

 

[manoj2012]

Reliance Industries Becomes First Company To Cross Rs. 6 Lakh Crore Market Cap

Reliance Industries shares closed 1.22 per cent higher at Rs. 952.30 on the BSE. During the day, they had jumped 1.76 per cent to Rs. 957.40.

 

[manoj2012]

GST woes: CAIT calls for CBI inquiry against Infosys, others for poor tax portal

Denying claims made by CAIT, Infosys in an email response to Moneycontrol said, “the information you have received is completely inaccurate.”

 

[manoj2012]

Bitcoin skyrockets above $7,000 for first time ever

Bitcoin has seen eye-watering gains in recent months and has more than doubled in value in the past seven weeks alone. It hit as high as $7,066.44 on the Luxembourg-based Bitstamp exchange on Thursday.

 

[vagar11]

First method of multi - account works but does bidding for multiple lots (from 1 a/c) increase the probability of getting atleast 1?

There is no benefit of applying multi lot from a single acct. Infact, there is a risk of getting multi lots in a undersubscribed ipo.

 

[Raj232]

Now its working fine..

Ok thanks.