Answer

1. F

   Facts

   Speculation loss can be set off only against speculation income, in the same year or carried forward for up to 4 years. It cannot be set off against F&O profit, salary or any other income.

2. P

   Provisions and law

   • Sec 73 (now Sec 113)Speculation loss set off only against speculation income, carried forward up to 4 years
   • Sec 80 (now Sec 121)Loss can be carried forward only if the return is filed by the due date
3. A

   Analysis

   If next year you make ₹50,000 in intraday, ₹50,000 of the old loss is used and ₹30,000 continues, until the fourth year. If you never make intraday profit, the loss lapses. The return for the loss year must be filed by the due date, or the loss cannot be carried forward.

4. C

   Conclusion

   1. 1Report the speculation loss in Schedule BP
   2. 2Carry it forward in Schedule CFL
   3. 3File by the due date
   4. 4Track it year by year for 4 years

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