Capital gain

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 Mr. x has suffered share FNO loss of 5 lac..(turnover i.e addition of individual profit n loss is 11 lac)
der is short term capital gain of 7 lac.

now how income will b calculated

1st option.. net income 2 lac .. not taxable return
2nd option.. FNO loss covered U/s 44AD ie 8% of 11 lac Plus STCG n tax thereon.

is it compulsory to opt 2nd option..

plz reply
thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2014 it is not compulsory. you can choose first option too. One view is that once you choose first option, section 44AA and 44Ab will become applicable. However, you can argue that audit and maintenance of books shall apply only if total income does exceed basic exemption limit.

regardless, you will need to file ITR4.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 Sir with due respect.. u want to say.. I can file itr 4 with out audit n books while going with opt 1 ..

dat means I can show fno loss in ma IT return without getting ma account audited n set off such fno loss with other head inome

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