ITR OF SHORT TERM CAPITAL LOSS FROM EQUITY SHARE

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This discussion clarifies the correct procedure for reporting short-term capital losses from equity share sales in an Income Tax Return (ITR-3). It confirms that declaring these under capital gains is the right approach. Furthermore, it advises that a tax audit is not required in this scenario, especially when capital gains are opted for. Losses from Futures and Options trading should be declared as non-speculative business income under the Profit and Gains from Business or Profession (PGBP) head.

BISWAJIT MAIKAP

BISWAJIT MAIKAP (Querist)

07 July 2022 Sir/Madam , One Client has done Online Trading Business. 1)His Future and Options's Loss value has declared in Trading account in ITR3 (Sell value (₹1056117) has declared in credit side,as Other revenue operation . purchase value(₹1391727) has declared in debit side, as purchase). 2) His Losses from Equity share sell Has Declared in Short term capital gain , Here his total Buy Value is ₹61773577 and total Sell Value is ₹61770211 , So ,(a) is it right the above said process? (b) is there need declare Turnover as more than 1 crore? and (c) is he liable for Audit?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 July 2022 Yes, it's a right process.
Tax audit not applicable in view of capital gains opted.

BISWAJIT MAIKAP

BISWAJIT MAIKAP (Querist)

07 July 2022 Thank you sir with many many respect .

CA Puja Sharma

CA Puja Sharma (Expert)

07 July 2022 No need to get the books audited because you are treating the shares under capital gain
F & O loss will be declared as non-speculative business under PGBP.

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