F&O Loss: Claiming TDS Refunds & Filing Returns

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If you've incurred F&O losses and want to claim TDS refunds, it's crucial to report these correctly in your tax return. Losses from delivery-based F&O can be treated as business losses, while intraday losses are considered speculative. Although filing a Profit & Loss account and Balance Sheet is generally required, especially if audited, you cannot simply omit F&O losses to claim refunds on other income. Even with a delayed filing, accurate reporting is essential to avoid potential IT notices. Consider presumptive profit if you wish to avoid an audit, though an audit is advisable.

arvind r shah

arvind r shah (Querist)
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22 July 2020 It is replied that if there is f& o loss & u want to file return for tds claim where to show loss & which return.? Need to prepare p& l& B.sheet and file ret to claim cf loss.?If return is delayed hence cf loss will not be allowed can i opt to not show f& o loss and only show f.d interest income & claim refund of tds.

Eswar Reddy S

Eswar Reddy S (Expert)
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23 July 2020 Loss from Delivery based F&O can be treated as normal business loss. Intraday loss can be shown as speculative business loss

Eswar Reddy S

Eswar Reddy S (Expert)
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23 July 2020 Since it is a business loss it should be audited .Hence profit and loss account , Balance Sheet us required

Eswar Reddy S

Eswar Reddy S (Expert)
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23 July 2020 Even it the ITR filing is delayed you must file true and correct details in ITR.So you can't opt not to show F&O loss

Eswar Reddy S

Eswar Reddy S (Expert)
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23 July 2020 Chances are high to get IT notice if if it is not shown in ITR

CA Raj Doshi

CA Raj Doshi (Expert)
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27 July 2020 You can report turnover of FNO and offer presumptive profit in case you dont want to get the accounts audited. Thought getting an Audit done is advisable.

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