Itr form for derivatives trader

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Mayank

Manager

28 Points Joined July 2016

I am having salary income and I also sometimes do trading in Stock derivatives. Last year I suffered loss of around 2 Lakhs. I want to show it and carry forward it to next year so that I can set if off in coming years. Wanted to know which ITR form do I need to fill? Do I need to maintain books of account and audit it? I only have a statement of Business Income/Loss from my Broker. Can anyone give genuine advise in this matter. I feel it is really very stupid of IT department to ask for Books of account and auditing etc from an individual who does not have any established business or does some part time work where he earns profit or loss. Request someone to advise urgently as due date for filling is very near. Thank you

Replies (3)

Ajit Hegde

CA - Final

1367 Points Joined September 2009

If the turnover exceeds Rs. 1 crore you have get your accounts audited under sec 44ab. For this purpose a simple trading / profit / loss account can be prepared. Turnover is to be calculated on the aggragate difference of the transactions (even negative differences to be taken). Show as normal business loss (not speculation) under itr4.

Mayank

Manager

28 Points Joined July 2016

Thanks Ajit. My total turn over is 8.5 Lakhs(profit + loss) only and loss is around 2 lakhs. Can I file ITR-4 myself or need CA to file it. I think if audit is not applicable in my case then I can file it myself.

If my understanding is correct and I can file it myself just need clarification on Balance sheet and Profit & Loss section.

If Books are not maintained I need to furnish details in Item 6. What is Sundry debtors, creditors, total stock in trade, cash balance?

In P & L section I need to fill Item 53. Does Gross receipts is total turn over above? Gross profit I will mention the amount in negative.

I know how to fill Salary details, TDS etc as per ITR 1. Do I need to fill any other tab in ITR 4?

Also from other blogs I read that if my total income exceeds exemption limit, I need to go through audit u/s 44AB. As my salary income exceeds exemption limit do I need to go through audit?

Thank you very much for the help.