Taxation regarding F&O losses.

#1
Hi,
I have seen this posted in many places, but haven't found any satisfactory response yet. So I'll post it here.

I am a salaries individual with small capital gains as the only other taxable income. I made a loss trading in F&O in the last Financial Year. What do I gain by reporting it in my returns? Can I adjust these losses against any gains made this year or the next?
 

anuragmunjal

Well-Known Member
#2
hi
You can carry forward that loss to next year(I am not sure the exact No. of years u can can carry it forward). the advantage u get is that, in case u make a profit next year, u can offset this loss wiith that profit.. u would be able to save tax on next year's profit upto the amount of present loss..

regards
 
#3
Thanks a lot for your reply! I have some more questions:

When calculating my F&O losses, do I take into account STT, brokerage, tax on brokerage, exchanges charges, demat account etc? For example, if I bought an option for Rs. 100 and sold it for Rs. 80, thereby incurring a loss of Rs.20. Say the other charges is Rs 10. Can I add these charges to losses?

My second question:
While filing I have the following heads of income -
1. Salary (I have a TDS certificate)
2. Savings bank account interest
3. Capital gains from shares held for less than 1 year
4. F&O losses
5. Divided received (Taxable but not reportable)

Which IT return forms do I have to fill? Is it just ITR 4, or I have to fill ITR 1 and 4, or ITR 1,2,3 and 4? It would be helpful if someone could briefly explain the purposes and the differences between the different ITR forms.

Thanks in anticipation.
 

anuragmunjal

Well-Known Member
#4
Thanks a lot for your reply! I have some more questions:

When calculating my F&O losses, do I take into account STT, brokerage, tax on brokerage, exchanges charges, demat account etc? For example, if I bought an option for Rs. 100 and sold it for Rs. 80, thereby incurring a loss of Rs.20. Say the other charges is Rs 10. Can I add these charges to losses?

My second question:
While filing I have the following heads of income -
1. Salary (I have a TDS certificate)
2. Savings bank account interest
3. Capital gains from shares held for less than 1 year
4. F&O losses
5. Divided received (Taxable but not reportable)

Which IT return forms do I have to fill? Is it just ITR 4, or I have to fill ITR 1 and 4, or ITR 1,2,3 and 4? It would be helpful if someone could briefly explain the purposes and the differences between the different ITR forms.

Thanks in anticipation.
hi Bridgeplayingcat

I would not be able to comment upon which ITR form to fill. my CA does that and a CA wd be the best person to guide u there.
one thing I can tell u is that while calculating ur loss, u can calculate ur net loss..inclusive of brokerage and other charges. u should have a statement frm ur broker which shows the amount paid and the amount recieved back(or due)..if it is negative, whatever amount u have 'lost' is a loss.

I wd state here that all information I have provided is to the best of my knowledge, pls crosscheck with ur CA before taking any desicion.

regards
 
#5
Hi bridgeplayingcat,

You need to fill ITR-4 form.
As such I have some doubts while filling ITR-4 form. Have you been able to get your ITR-4 form filled. I would like to know how to hanlde gross receipts under PL sheet.

Sameer.
 

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