Speculative loss

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This query is : Resolved

vijaya naga manoj (Querist)

21 July 2017 I am salaried employee. i have been to investing in shares from last November. In initial months i have traded for few days i.e; intraday and got net loss of Rs 167 with a trading value of Rs 10000. From February i haven't traded again and but have few shares for investment sake. I have no intention to trade as intraday further and set off that loss which is a minimum one. Can i file ITR 2 instead of ITR 4? Since i filed only ITR 1 last A Y where i have no income except salary.

CA Harsh Kothari

CA Harsh Kothari (Expert)

21 July 2017 ITR 4 has been discontinued now. To disclose gain/ loss from intra-day trading, you will have to file ITR 3. Irrespective of whether you want to carry forward the loss to subsequent years, you should disclose these transactions. In my view, filing ITR 1 is not an ideal thing to do in your case.

vijaya naga manoj

vijaya naga manoj (Querist)

21 July 2017 ITR3 is for business. here i am not doing any business at all and that to for limited time. i have some STCG.
ITR3 is asking for nature of business. what should i fill? can't i file ITR2 only, leaving that loss?

CA Harsh Kothari

CA Harsh Kothari (Querist)

28 July 2017 Intrday trading is considered as a speculation business. Filing the ITR without reporting that would be furnishing of inaccurate particulars.