Declaring losses

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Venkatesh (Querist)
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05 July 2014 I am Salaried person and have transaction in Equities and F&O; I am going file ITR 4. I have loss in F&O as well as in Equities (Short term and Long term). Question is whether Shall I show all the losses in Equities and F&O as Business loss or Should I show F&O loss as "Business loss" and Equities as "Capital loss". Please suggest.

Venkatesh

Venkatesh (Querist)
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05 July 2014 Please suggest

CA Mohit Bansal

CA Mohit Bansal (Expert)
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06 July 2014 Mr. Venkatesh,

F&O loss would be treated as business loss and loss in equity shares would be capital loss for Income Tax purposes

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Venkatesh

Venkatesh (Querist)
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06 July 2014 Mr. Mohit,
Thank you for your reply, Since I am declaring myself as "Trader" and going to file ITR 4 along with my form 16 which I got from my employer.

The below mentioned links guide like "Any income from buying and selling shares even if more than a year is considered as a business income." If I declare as "Trader". Please clarify whether I am right on this.

If I could show the long term loss as business loss; Then only I can set off in future years profit.

Could you visit https://zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified#comment-9933

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