Answer

1. F

   Facts

   Intraday trades in shares, settled without delivery, are speculative transactions. Their profit or loss is speculative business income, kept separate from F&O and delivery trades.

2. P

   Provisions and law

   • Sec 43(5), Income-tax Act 1961Speculative transaction means one settled without delivery; derivatives on a recognised exchange are excluded
   • Sec 73 (now Sec 113)Speculation loss set off only against speculation income, carried forward up to 4 years
3. A

   Analysis

   If intraday profit was ₹60,000 and F&O loss was ₹2,00,000, the F&O loss can be set off against the intraday profit, since non-speculative loss can be set off against speculative income. But if intraday made a loss of ₹60,000 and F&O made a profit, the intraday loss cannot reduce the F&O profit. Report speculative income separately in Schedule BP.

4. C

   Conclusion

   1. 1Get intraday P&L separately from the broker
   2. 2Report it as speculative income in Schedule BP
   3. 3Apply set off rules: speculation loss only against speculation income
   4. 4Carry forward any speculation loss for up to 4 years

Sec 43(5) has no confirmed 2025 Act number in our mapping; cite the 1961 section for past years.

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