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Itr filing required or not?

Vijit (Self Employed) (57 Points)

09 July 2016

Hello everyone,

Please help, Do I need to file ITax return. Below is the case-

- I have 2.5+ lacs of profits (short term) through stock markets. But after adding losses (short term) for the same year, it comes down at around 50,000/- something. So, income for FY 2015-16 becomes below 2.5 lacs. Apart from this NO other source of income this FY.

So, please guide me, do I require to file return this FY?

Thanks in advance.

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14 Replies

Dinesh Mertiya (PROFESSIONAL) (761 Points)
Replied 09 July 2016

your income, before giving deduction for the year, is below taxable limit, then it is not mandatory to file return as per income tax act

Vijit (Self Employed) (57 Points)
Replied 09 July 2016

Thanks Dinesh for your quick reply.

So here income means profit+loss correct or only profit?

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 09 July 2016

VIJIT SIR AS YOU SAYS THAT YOU PROFIT 2.5 + PLUS ( ABOVE 2.5 LAC) THAN YOU SHOULD FILE ITR OTHER THAN YOU PROFIT BELOW 2.5 LAC THAN NOT NEED TO FILE GOOD LUCK

Vijit (Self Employed) (57 Points)
Replied 09 July 2016

Thanks Tanush sir, but my main confusion is whether only profit is counted as income or profit-loss will be counted as income?

Pattabhi Ramarao Mothadugu (Working) (44 Points)
Replied 09 July 2016

Net short term capital gain is considered. Which is profits less losses.

Jatin Gada (searching job) (151 Points)
Replied 09 July 2016

Profit + Loss are consiered in case of Speculative Transaction. In Speculative Transaction We have to consider Profit + loss figure. And if it is below 2.5 lakh then there is no need to File Income tax return.

manoj (student) (5205 Points)
Replied 09 July 2016

You have to file ITR before Due date otherwise you cant claim loses

Minesh Rawat (Article) (199 Points)
Replied 09 July 2016

your short term capital gain after set off short term loss does not exceed the maximum amount chargeble to tax so you are not required to file return... but I would suggest to file nil return of income even if you are not required to....it can be helped in many ways in future.. .so file it yourself...Its very easy

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mohammad rasool baig (Management Consultant) (1026 Points)
Replied 10 July 2016

If equity shares are sold within 12 months from the date of purchase, then the short term capital gain tax of 15% is applicable irrespective of the personal tax slab (10%, 20% etc). If investor’s other income excluding short-term capital gain is less than basic exemption limit then he can take benefit of such shortfall in basic exemption limit. Any short-term capital loss from equity trading can be set off against any short-term capital gains. The important points to note here is that long-term capital gain arising on shares sold directly to a friend without routing it through Indian stock exchange are not exempted from tax as STT is not paid on such shares.

It is not mandatory to file returns but it is advisable to file income tax returns.