Which form should be filled?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2012 I HAVE SPECULATION LOSS ON DAYTRADE OF SHARES
+ SHORT TERM CAPITAL LOSS ON SHARES
+ SALARY INCOME
WHICH FORM SHOULD BE FILLED BY ME FOR TAX RETURN AND ALSO WOULD LIKE TO KNOW ABOUT CARRY FORWARD AND SET OFF OF MY LOSSES.
THANK YOU IN ADVANCE.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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01 June 2012 ITR 4.

The loss from speculation business can be carried forward for 4 years and can be set off only against speculation income.

Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2012 thanks
i want more information

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 For your situation with **speculation loss on day trading**, **short-term capital loss on shares**, and **salary income**, here’s what you need to know about the **Income Tax Return (ITR) form** and loss set-off/carry forward:

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### 1. **Which ITR form to file?**

* Since you have **speculation business loss** (from day trading), **short-term capital loss**, and **salary income**, the correct form is:

**ITR-3**

* Used by individuals and HUFs having income from business or profession (including speculative business).
* Also used if you have capital gains (short-term or long-term) along with salary.

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### 2. **Loss set-off and carry forward rules:**

* **Speculation loss** can only be set off against **speculation income** (i.e., gains from speculative business) in the same year.
* If speculation loss cannot be fully set off, it can be **carried forward for 4 assessment years** and can be set off only against speculation income in those years.
* **Short-term capital loss (non-speculative)** can be set off against any capital gains (short-term or long-term) in the same year.
* If unadjusted, short-term capital loss can be carried forward for **8 assessment years** and set off against any capital gains.

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### Summary for you:

| Loss Type | Set-off Allowed Against | Carry Forward Period | Remarks |
| ----------------------- | -------------------------- | -------------------- | ---------------------------------------------- |
| Speculation Loss | Only speculation gains | 4 years | Cannot set off against salary or capital gains |
| Short-term Capital Loss | Capital gains (short/long) | 8 years | Can be set off against any capital gains |
| Salary Income | N/A | N/A | Taxable as per normal slab |

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### Recommendations:

* File **ITR-3**.
* Maintain proper records of your speculation and capital losses.
* Losses must be declared properly for carry forward.

If you want, I can help you with a sample format or further details on filing!

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