Stock market loss.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 June 2012
In case of loss and when turnover crosses Rs. 40 lac in one year is it mandatory to inform income tax authorities about the trading activities when the loss is not carried forward and is not claimed in any other business.
08 July 2012
First of all you have to determine the nature of loss
1) If it is intra-day transaction loss then it is speculation LOSS and can be carried forward and adjusted against only speculation profit
2) If the loss is holding the script for less than 15 day or 1 month then it is to be treated as business loss and can be carried forward
3) If it is out of holding the script for more than 1 month then it is short term loss and can be carried forward.
4) If it is above 1 year then it is capital loss and can be carried forward.
In all the cases the return of income must be submitted in time as provided u/s 139(1) otherwise the loss shall not be allowed to be carried forward.
It is not material what is your turnover but if it exceeds the limit of Section 44AB then tax audit is required to be done.
1) If it is intra-day transaction loss then it is speculation LOSS and can be carried forward and adjusted against only speculation profit
2) If the loss is holding the script for less than 15 day or 1 month then it is to be treated as business loss and can be carried forward
3) If it is out of holding the script for more than 1 month then it is short term loss and can be carried forward.
4) If it is above 1 year then it is capital loss and can be carried forward.
In all the cases the return of income must be submitted in time as provided u/s 139(1) otherwise the loss shall not be allowed to be carried forward.
It is not material what is your turnover but if it exceeds the limit of Section 44AB then tax audit is required to be done.
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