Requirement of Tax Audit to carry forward losses under F&O

This query is : Resolved

NB (Querist)
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21 April 2024 I am salaried individual. Filing ITR2 for past several years. This is first year I have been involved in F&O trading (nifty index options trading). I have incurred a loss this year. Plan to carry forward this loss to next year. I understand I need to file ITR3. My F&O turnover is less than 2 Cr.

Can the experts advise if incurring an F&O loss and wanting to carry forward this F&O loss makes it mandatory to maintain books of accounts and get a tax audit done. There are conflicting opinions of experts on the internet. So clarification will help. Thanks.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 April 2024 you may not required an audit., But you need to maintain books of accounts and file ITR-3 to claim carry forward of loss.

Happy to help you in case you need assistance for filing of the return.