Specilative loss claimed and defective return

Save Share

This query is : Open

vinay mehta (Querist)

18 February 2016 For AY 2015-16 a return was filed ITR 4 where Salary income and speculation loss was claimed. The speculation loss comprises of intra day share loss of Rs. 6000. The same is shown in ITR as speculation loss to be carried forward.
Return was filed in time.

Now, Department issued a notice of defective return stating that since loss is claimed in profit and loss from busienss profession, audit report to be submitted or profit more that 8% to be declared.

What should be done in this case as in my opinion its not a business but intra day loss but as per provisions to be claimed as speculation loss.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

18 February 2016 Yes. you are correct, loss from Intraday loss speculation loss only. there will be some other technical issues in ITR please check , the speculation loss shown in proper place in ITR and carry forward

vinay mehta

vinay mehta (Querist)

18 February 2016 Please sugget the place in ITR 4.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

18 February 2016 My view problem with your ITR itself. because ITR-4S can be used those who filling income tax return under presumptive business,there you cannot show the speculative losses. file the return correct return by using ITR-4

vinay mehta

vinay mehta (Querist)

18 February 2016 Sir, I mentioned ITR 4 itself in query.
Please suggest which place in ITR 4 ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

18 February 2016 You can mention in the "BP" ( Schedule BP) sheet Row number 2a

vinay mehta

vinay mehta (Querist)

18 February 2016 Yes it was done same in ITR 4 and then they asked to file audit report or declare more tha 8%, and have put it under defective return.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

18 February 2016 Such as case you can approach your assessing officer with written reply for the notice stating all the facts