Fno loss


(Querist)
10 June 2019
Mr. X suffered Loss in FNO of Rs. 350000.00, where to show same in ITR, is it a Business Speculative Loss or Income from Other Sources. IF its Business Loss than.. Books is compulsory or its 6 Percent Profit is compulsory U/s 44AD or directly showing Business Loss without books of Accounts. Plz guide.. thanks in advance


Zeal Bangdiwala (Expert)
10 June 2019
Future and Option Loss is a normal business loss and not a speculative loss. It cannot be shown under IFOS. If you want to show the loss and carry forward than in that case you need to maintain complete books of accounts and if your total income exceeds the maximum limit of income not charegable to tax then in that case you also need to get your accounts audited u/s 44AB. If you do not want to carry forward the loss then you cannot opt for section 44AD and offer 6% or actual profit which ever is higher. You cannot claim loss u/s 44AD by filing ITR 4 for that you need to get your books of accounts audited.

Ajay (Querist)
10 June 2019
Thanks for your reply..
its case of FNO loss of 3.5 Lac (one time)
i don wana go for Audit option..
what other option i have.. ???

Ajay (Querist)
10 June 2019
if 44AD... den instead of loss i have to show 6 Percent Gain.. again how to Calculate GTO for same.
it case of loss .. i dont wanna C/f same.. Cant i directly show it as Loss from Business with Books of Accounts

Ajay (Querist)
10 June 2019
plz guide

ts case of FNO loss of 3.5 Lac (one time) i don wana go for Audit option.. what other option i have.. ???


Zeal Bangdiwala (Expert)
10 June 2019
If you want to claim loss and if your other income apart from F&O is more than 2.5 lakhs than compulsory to have to go for audit. Even if you opt for 44AD and show loss than also you have to get your books audited. If you want to show profit @ 6% from F&O business than calculate the turnover by totaling the positive and negative differences (ignoring the negative signs) of your F&O transactions.


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