URGENT: Query regarding loss return

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mayank srivastava (Querist)
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27 July 2009 i hav loss from daily sale - purchase of shares(Intraday Trading)..... now i want to file the loss return.....i dont hav any other income....which ITR Form should i use to file the return.....i thaught that it ll cover under speculative business loss....the total sale proceeds of shares does not exceed Rs. 40 Lac... so i dont need the audit

Anubhav Bansal

Anubhav Bansal (Expert)
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28 July 2009 do you have any transaction of F&O?

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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28 July 2009 U have to prepare the ITR4 and submit it.
Its better u take help of any CA for its preparation since any mistake would lead it to be classified as a Defective Return.

U can even mail me the info., if u so desire

mayank srivastava

mayank srivastava (Querist)
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28 July 2009 i never traded on F&O

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 Here’s a quick guide for your situation regarding filing a loss return from intraday trading (which is considered **speculative business loss**) with no other income:

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### Which ITR Form to Use?

* **ITR-4 (Sugam)** is generally used for presumptive business income but **not suitable for speculative business loss**.
* For **speculative business loss** from intraday trading, you should file using **ITR-3**.

* ITR-3 is for individuals/HUFs carrying on business or profession, including speculative business.

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### Key Points:

1. **Intraday trading = Speculative business** as per income tax rules.
2. You can set off speculative loss **only against speculative gains**.
3. If you have no other income, you still must file ITR-3 declaring the loss.
4. Since turnover (total sales) is less than ₹1 crore, **audit is not mandatory**.
5. Maintain proper books/records for speculative transactions.

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### Summary:

| Situation | Recommended ITR Form | Audit Required? |
| -------------------------- | -------------------- | ----------------------- |
| Intraday trading loss only | ITR-3 | No (if turnover < 1 Cr) |

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**Note:** If you also trade in F\&O (Futures & Options), which is a non-speculative business, it is a different category and tax rules differ.

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If you want, I can help you prepare a checklist or draft for the filing. Let me know!

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