Is it mandatory to file ITR if the net income from the capital market is loss?

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Mr. AB (Querist)

24 July 2024 For a person being resident Indian, solely doing trading activities in the Indian capital market, is it mandatory to file ITR if the income statement for the previous year results in a loss?

Are there any relevant act, law, rule, or case article regarding this matter?

Thank you in advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 July 2024 As per Sec. 139(1) IT act. a person other than a company or a firm is required to furnish the return of income only if his total income exceeds the maximum amount not chargeable to tax, subject to certain exceptions.
Provided also that a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year—
(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or
(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or
(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or
(iv) fulfils such other conditions as may be prescribed,
..... shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.”

There is no specific condition to file return if person is engaged in stock market trading ...

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