Loss in sale of share and mutual fund

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2013 Hi
My friend is salaried person and he has paid TDS on his salary during last year. He also sold shares and mutual funds and suffered loss in it. Is it necessary to show it in income tax return If yes then How to show it in ITR1?
Kindly give me suggestion on it.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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25 July 2013 Yes its necessary to show all losses whatever your friend has incurred during last financial year.

For filling of Return of Income you have to select ITR4 form

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2013 How can salaried person use ITR 4

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 July 2013 If he can show the loss under the head Capital Gains, he can use ITR-2.
.

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2013 If he don't want to show loss what will happen?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 July 2013 The investment can be treated as undisclosed investment or is made from undisclosed sources of income.
.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2013 But sir my friend problem is that he don't know when he has purchased shares it may be during last financial year and not shown purchase of share in ITR

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 July 2013 1. Date of purchase can be found by contacting the broker/sub-broker.
2. In case of IPO from Bank pass Book
3. If purchased prior to 1 year shares are treated as long term asset and capital gain & loss is exempt from tax.
4. Same is the case of units of equity oriented units.
5. The purchases is not required to be shown in the Return of a salaried person so that is not any issue.
.

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