Equities and f&o trading loss

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Venkatesh (Querist)

28 June 2014 I have long term capital loss in equities, can I claim it as business loss along with Equities trading and F&O loss. Please suggest If I need to use ITR 4; can I do it for myself or should I contact any CA firm to do for me (Since the Turn over is less than 1 crore; No need of Audit). Please suggest.

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 June 2014 Dear Venkatesh,

Yes you would need to file ITR4.

However, the most important thing for F&O loss is the computation of turnover. As long as you are able get it right and that your profit is more than 8% of the turnover so computed or where the profit is less than 8% but the total income is less than Rs 2 lakhs, there is no need for audit.

Otherwise audit shall be necessary.

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Venkatesh

Venkatesh (Querist)

28 June 2014 I do not have profit. But loss in F and O and loss in Equities. In this case, Shall I file the return in ITR 4 by myself without audit.

1. Can I show all the losses (F&O and Long term / Short term loss in Equities) as business loss ( I am a salaried person as well).

2. I would like to set off this loss in futures. So need to file properly.

Please suggest. Thank you for your help

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 June 2014 Venkatesh,

once your total income (from all sources) exceed Rs 2 lakhs, to claim loss you shall have to get the audit done.

no set off can be done against salary. So you need to carry forward the loss to set off in future years.

Venkatesh

Venkatesh (Querist)

28 June 2014
Thanks for your reply.

If considered salary Income. It exceeds. Otherwise not.

Should I consider the salary too; along with trading loss.

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 June 2014 you have to consider total income including salary...

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