Losses form securities and F&O

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vimal shankhwar (Querist)
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22 February 2011 Hi, If I have invested in my brother's securities Trading Account & have incurred losses in Equity as well as F&O segment. so please advise return of losses can be filed because till date he has not filed any return as there is no profit from sale of trading & he has no other income. what would it effect if I have invested his trading account? Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 February 2011 Return of loss can be filed but you can not carried forward the loss.

If you have given him thru cheque then show it as a loan.

Otherwise, show it as amount gifted by you, provided you can justify the source from where you have got the funds.

It will be better to contact CA , as he may find other possibilities in this matter.

vimal shankhwar

vimal shankhwar (Querist)
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25 February 2011 Dear Sir, thanks for the reply..

I have confirmed form CA and he confirmed that, In the case of investment made by me to my brother's account, the income/loss will taxed in my hand as it attract clubbing of income..is is true?

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