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F&o loss

bhanu (student) (37 Points)

24 June 2017

I have incurred a loss of Rs.40 lakhs in F&O trading.My turnover i.e Sum of credit & debits is Rs.76 Lakhs.Where should I show this (In which column of ITR-4) so that I can carry forward these losses.Am I liable for 44AD or Audit?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 24 June 2017

"Am I liable for 44AD?"

No, unless you declare 6% profits over your Turnover

"Or Audit?"

Yes, as you wish to carry forward the losses.....and ......ITR 3 should be filed.........

chetanptl1993@gmail.com (11 Points)
Replied 24 June 2017

You shouldn't filed ITR 4 coz now you're doing f & o there should be fall in speculation business so should be filed compulsory ITR 3 and in case loss of speculation business there should be set off in relevant year.

dipti sharma (117 Points)
Replied 24 June 2017

section 43(5) specifically excluded F&o transactions from being treated as speculative transactions, as such they are to be treated as normal business income, and dealt with accordingly