Forex loss tax deductible

Forex loss tax deductible

/8/21 · By Taxscan Team - On August 21, am The High Court of Bombay in a recent decision held that the foreign exchange loss is not a “notional” or “speculation” loss and is allowable as a deduction. According to the division bench, the same is eligible for deduction Estimated Reading Time: 2 mins /6/1 · Section taxes FOREX gains and losses like ordinary income, which is at a higher rate than the capital gains tax for most earners. An advantage of Section treatment is that any amount of ordinary income can be deducted as a loss, where only $3, in capital gains losses can be blogger.comted Reading Time: 5 mins /3/9 · "Section ordinary loss treatment can be a problem if the trader doesn’t have trader tax status (business treatment) and has negative tax income. In that case, the excess forex ordinary losses are wasted and can’t be included in capital loss or business net operating loss carry backs or forwards."

Can I claim my forex losses?

According to the division bench, the same is eligible for deduction under section 37 of the Income Tax Act. While upholding the order of the ITAT, forex loss tax deductible, the […]. The Assessing officer completed the assessment by disallowing the above claim for the reason that it is a contingent liability. Being aggrieved, the assessee filed an appeal before the Commissioner of Income Tax Appeals in which the said order was sustained. However, the Appellate Tribunal, on second appeal, allowed the claim of the assessee by holding that it is covered under section 37 of the Income Tax Act.

Against the said order, the Revenue approached the High Court. The division bench comprising of Justice M S Sanklecha and Justice A K Meon found that, the impugned order was passed by the Tribunal following te decision in Commissioner of Income Tax Vs. Woodward Governor India P Ltd, forex loss tax deductible. Before the High Court the Revenue contended that, subsequent to the above decision the CBDT forex loss tax deductible Instruction no.

The Court also opined that the said circular is not applicable to the instant case since the loss was not on account of derivatives but are in fact losses and gains in foreign exchange relating to the purchase and sales transactions i. creditors and debtors outstanding as on 31st March, By Taxscan Team - On August 21, am.

Ltd section 37 of the Income Tax Act. Related Stories.

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Treatment of Exchange Fluctuation under Income Tax Laws

/8/21 · By Taxscan Team - On August 21, am The High Court of Bombay in a recent decision held that the foreign exchange loss is not a “notional” or “speculation” loss and is allowable as a deduction. According to the division bench, the same is eligible for deduction Estimated Reading Time: 2 mins The forex realisation loss A Co makes is deductible in the income year under section The gain or loss made on the forward exchange contract that A Co entered into with B Co is worked out separately to the gain or loss made on the sale of goods contract /5/31 · Can I claim my forex losses? This is my first year trading in the forex market and I invested a total amount of $ and I never withdrew any capital and lost ALL my money in the forex market (I have documentation of my trades). My question is can I claim all that under investment losses and get that money back on my tax return?