ITR filing

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This discussion clarifies ITR filing requirements for Futures & Options (F&O) losses. If you have an F&O loss of 8 lakhs on a turnover of 18 lakhs for FY 19-20 and do not wish to carry forward the loss, a tax audit is generally not required. However, if you intend to declare and carry forward the loss, a tax audit becomes mandatory. The advice given is that not declaring income is a suppression of facts, but declaring a loss is optional when no tax is involved.

Ramkumar

Ramkumar (Querist)
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06 August 2020 I have incurred F&O loss of 8 lakhs, for FY 19-20 ,do i need to have audit (if i dont want to carry over the loss)
my turn over is 18 lakh.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 August 2020 No need of tax audit.

Ramkumar

Ramkumar (Querist)
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06 August 2020 When i consulted a CA over telephone, he suggested a tax audit as it is a case of loss (which falls below 6% of turn over). Is there any provision to disclose the loss w/o audit in ITR3 ?
My taxable income is 12-13 lakh.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 August 2020 If you don't want to declare the loss in ITR then no need of audit.
If you declare and carry forward the loss audit is required.

Ramkumar

Ramkumar (Querist)
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07 August 2020 Ok. Then how to show this trading activity in the ITR in such a way that it should not leads to suppression of facts as per rules.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2020 Non declaration of income is suppression of facts.
Declaration of loss is left to the option of assessee as no tax involved.

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