CAN PROFIT IN STOCK(DERIVATIVE) US MKT BE OFFSET WITHC/F LOSSES IN DERIVATIVE INDIAN MKT

[satinder chadha]

X is an Indian  proprietary concern which has c/f losses in Indian derivative market .  X trades in United States derivative market as an individual and has profits. Can X offset his proprietary concern derivative losses with profits from individual account in derivative trading in USA?

AI Summary

Indian Derivative Losses Can Offset U.S. Profits; Section 43(5) Allows Carry-Forward for Eight Years An Indian proprietary concern, referred to as X, has carry-forward losses in the Indian derivative market and profits from trading in the U.S. derivative market as an individual. The query is whether X can offset these Indian losses with U.S. profits. The response clarifies that for residents, the Income Tax Act does not differentiate between domestic and foreign profits or losses. Therefore, X can offset the Indian losses against foreign profits. Additionally, derivative transactions are not considered speculative under Section 43(5), allowing losses to be carried forward for up to eight years for set-off purposes.