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.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vimlesh kumar

Shivchandra Jakhotia

Dhananjay Singh

cgagroshg cgagroshg

vinal

Subscribe Now

Stock market loss.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANCY

GST CONSULTANT

Accountant

CA Final