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Can the loss incurred on the futures market be set off against normal business profit?

April 26, 2017Business Futures incurred loss market normal profit

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Can the loss incurred on the futures market be set off against normal business profit?

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Loss incurred in futures market by entering into contracts for hedging purposes can be set off against normal profit. The loss incurred on account of speculative transactions in futures market cannot be set off against normal business profit. This loss is however allowed to be carried forward for eight years, during which it can be set off against speculative profit.