ITR due date extension not occurring. Can you set off stock market losses against salary?

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If you a salaried employee and trading in stock markets then ITR is not going to be extended this year, you cannot set off your stock trading losses against salary income.

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The government does not plan to extend the ITR deadline this year as it expects most declarations to be submitted by that deadline.

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Employees who have not filed their ITR can still still set off their losses from stock markets and file a return before the due date.

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According to tax rules, stock market transaction are either Capital Gains or Business Income based on, trading, investment, volume and frequency of transactions, holding period, etc. 

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Capital gains are again classified as long-term and short-term capital gains based on their holding period. 

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Business can also be classified as speculative income eg. on account of intra-day exchanging. Trading/stock market losses are permitted to be adjusted based on the rules applicable to income heads.

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A long-term capital loss is allowed to be adjusted only against the long-term capital gains. But a short-term capital loss is allowed to be adjusted against both short-term and long-term capital gains.

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In intra-day trading a loss could be adjusted only against speculative income from commodities or intra-day trading in the current year or the next four years.

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Any business loss from shares other than intra-day trading can be adjusted against all other incomes except salary income. Therefore, the taxpayers cannot set off their trading/stock market losses against their salary income.

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