Loss in F & O trading

Hi All,

In last FY I have loss of Rs. 100,000/- in F & O which I want to show in Tax return. wants to know how to do this. As I am salaried class person. I asked this on another thread and Shravan told me I need to file ITR 4 and my loss need to be variefied by CA. So wants to know how to do that. I don't have any CA.

Regards,

Chintan

You can carry forward that loss and set it off against profits from future years.But you have to file IT returns in ITR-4 and get the accounts audited. Contact any CA as the last date for filing return if you have to carry forward the loss is 31st July...if the return is filed late, loss cannot be carried forward.

Smart_trade

Thanks ST,

Do I need to show all the contract notes to him.

I also wanted to ask the same question.

1. If a person is in share trading, having turnover less than 1 crore and incurs loss/shows net profits less than 8% of the turnover, does he need to maintain books of accounts and get an audit report ? (As per section 44AD of Income Tax Act)

2. If yes, then does this apply to all categories of share trading i.e. Equity (Intra-day & Short term delivery), F&O, Currency and commodity?

3. If an audit report u/s 44AD of Income tax Act is required, will the due date of return filing still be 31st July and not 30th September?

Regards
Shailender Bali

I heard that if one's profit is less than 8%/loss, then the deadline is september.
http://finotax.com/income-tax/info/return-filing

1. Yes, he has to maintain books of account. And yes, turnover audit is must.
2. http://zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified
3. Recently, I heard about it. I am not sure about it.

Any Law is there to be twisted, misread and mis interpreted. More so if it is Taxation matter.

Please consult any CA for clear cut and dependable answers.

Please do not waste time here and act before the Due Dates.

These are professional matters , so consult a CA. Dont depend on Traderji posts in such important things. CAs will charge around Rs 10,000 -12,000 for audit and IT return but we have to pay and get it done.



Smart_trade

Isko kehte hain nuksaan pe nuksaan

One is already in loss from many thousands to some lakhs and he has to go for compulsory audit and on it, one has to pay the fees of a CA, to increase his losses further :annoyed:

I do not know, how true it is, but it is said that F&O traders, cannot go for presumptive tax (paying income tax on 8% profit of your turnover), like other businesses irrespective of quantum of loss or profit.

Otherwise, 30-40 lakhs is a good big turnover for a retail F&O trader and paying nominal tax on 2.4 - 3.2 lakhs of presumptive income will be the best option for them, than all these hassles. Even the small F&O traders of 15-20 lakhs turnover, are not kept outside of this hassles (who will otherwise, be below the taxable limit, as their presumptive income will be 1.2 - 1.8 lakhs respectively).

OK. I have asked even if it is September, we get it done before July 31st. I better meet again and see the progress. I guess two weeks is good enough time to make the book, right?