NISM Series XIII Common Derivatives Certification Exam Notes
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Set-off and Carry Forward: Business losses from exchange-traded derivatives can be set off against any business income but not against salary income.
Carry Forward Period: Unabsorbed business losses can be carried forward for up to 8 assessment years.
Due Date Requirement: Losses can only be carried forward if the return is filed on or before the due date.
Speculative Transaction Exclusion: Section 43(5) excludes eligible derivatives from the definition of speculative transactions if traded on a recognised stock exchange.
Tax Deductibility: Administrative expenses related to derivatives trading are deductible.
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