Declaring losses

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Venkatesh (Querist)

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)

05 July 2014 Please suggest

CA Mohit Bansal

CA Mohit Bansal (Expert)

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

Message likes : 1 times

Venkatesh

Venkatesh (Querist)

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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