INCOME TAX9 Sept 2026
₹34 lakh tax relief for F&O trader: Why ITAT Delhi rejected the ‘speculative loss’ tag
Delhi ITAT ruled for a Mathura trader who earned ₹8.64 crore from real estate and lost ₹34 lakh in F&O. The Tribunal said exchange-traded derivatives aren't speculative under Section 43(5)(d), and Section 73's rule doesn't cover F&O. So the loss can offset business income. F&O traders facing similar tax disputes should see if this ruling applies to them.
Key Statutory Highlights
- The Income Tax Appellate Tribunal, Delhi ruled in favour of the taxpayer on July 10, 2026.
- The Tribunal held that Section 73's deeming provision applies to purchase and sale of shares, not to futures and options.
- Derivative transactions on a recognised stock exchange are excluded from speculative transactions under Section 43(5)(d).
Actionable Advice for Taxpayers / Founders:If you are an F&O trader whose losses were treated as speculative, consult a tax advisor and check whether this ITAT ruling supports claiming a business loss set-off in your ITR.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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