F&O

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This discussion addresses concerns about filing tax returns when experiencing losses in Futures & Options (F&O) trading. It clarifies that while losses below a certain threshold or turnover might not require reporting, F&O transactions themselves generally need to be declared. The advice also covers situations involving Tax Deducted at Source (TDS) on investments like Fixed Deposits, explaining how to file a belated return to claim refunds. For those with significant derivative turnover and losses, the presumptive taxation scheme is suggested as a way to report a notional profit and avoid showing the actual loss.

Harshit Agrawal

Harshit Agrawal (Querist)

16 July 2020 I have done f&o trading from my grandfathers money and i have no income and have lost 8 lakh in f&o trading my turnover is less than 1 crore so should i require to present my loss as i have no income

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 July 2020 No need to present loss.

Harshit Agrawal

Harshit Agrawal (Querist)

16 July 2020 Thank you but i also want to ask as i have to file return showing f&o transaction or just file a nil return not showing f&o transaction

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 July 2020 You have to show f&o transaction.

Harshit Agrawal

Harshit Agrawal (Querist)

16 July 2020 If i do not show f&o transaction will there be any problem as it becomes difficult and hefty and it contains only loss no profit so why should i report it

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 July 2020 Yes, loss income need not be reported.

Harshit Agrawal

Harshit Agrawal (Querist)

16 July 2020 Thank you sir but which itr i should file as i am under exemption limit of 2.5 lakh and i am not salaried and will i need to get a balance sheet prepared or just file the return without balance sheet as i am not reporting loss.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 July 2020 In such a case no need to file any return. Still you want to file no need of balance sheet.

Harshit Agrawal

Harshit Agrawal (Querist)

17 July 2020 Thank you sir but i have received a message your pan has been flagged for not filing of itr for the financial year 2018-2019. Tax has been deducted on fd which is matured in 2018-2019. Is it because of tax deduction?
i was having fd of 150000
In bajaj finance on which tax has been deducted.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 July 2020 Yes, it's because of TDS file belated ITR before the end of the month and claim TDS refund.

Harshit Agrawal

Harshit Agrawal (Querist)

18 July 2020 Thanks for the support sir i will file for tax refund

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 July 2020 Welcome....................

Harshit Agrawal

Harshit Agrawal (Querist)

31 July 2020 I have no income and I am under 2.5 lakh exemption limit but i am having 15 lakh loss in f&o in 2019-2020 also. So should i file itr in 2019-2020 my overall turnover including equity and equity derivatives is 75 lakh.I have used grandfather and my father money in f&o so will this income club.

Harshit Agrawal

Harshit Agrawal (Querist)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2020 No need to file return in such a case. When any query is raised reply to it as source of related to father.

Harshit Agrawal

Harshit Agrawal (Querist)

05 August 2020 Sir i have 60 lakh derivative turnover and 15 lakh loss can i take presumptive taxation scheme and avoid loss showing in itr by showing 6% profit as all transaction are digital in my trading account.please tell will it be right or will i get notice for this

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 August 2020 Yes it will be right and you will not receive any notice.

Harshit Agrawal

Harshit Agrawal (Querist)

05 August 2020 Thanks you for helping me a lot in itr filling.

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