Short term capital gains tax from share trading

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If you've incurred a short-term capital loss from share trading, you can carry it forward to offset future capital gains. Even if your total income is below the taxable threshold, filing an Income Tax Return (ITR) is recommended to officially record and carry forward these losses for future tax benefits. This ensures you can utilise the loss in subsequent years when you might have capital gains.

Sahil Mashur

Sahil Mashur (Querist)

11 June 2020 Hi,

I am currently working in a private company with CTC of 5.24 Lakh per annum . I joined the company on 9th October, 2019. In FY 2019-20 my Short term capital loss from share trading was Rs 65,790. It did only delivery based trading . Should I file income tax return for this loss amount so that it can be set off against any capital gains in the future. How do I file income tax return for this loss amount so that I can carry it forward for set off in the future .

Kindly Guide me on this. Any help will be greatly appreciated

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 June 2020 Your income is below taxable limit so no need to file return and carry forward loss.

Punit Gupta

Punit Gupta (Expert)

12 June 2020 Income seems above the taxable limit, so you should file Income Tax Return.
Also, if the income is not falling beyond the threshold, you should still file your Income Tax Return for the year in which you have Loss of Short Term or Speculative nature, because the carried forward losses in will help you in Setting of the losses against any Gains in the forthcoming years.
You should file your Return of Income showing Income from salary and the Short Term Capital Loss.
Hope this clears your query.

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