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Audit applicability for carry forward of F&O losses

21 October 2021

If X is salaried employee and Salary exceeds basic exemption.

He has F&O turnover of 77L but has a loss of 150000 and wants to carry forward the same.

New portal doesn't allow for negative figure in No Accounts case .

Is tax Audit mandatory to carry forward losses from F &O though Turnover doesn't exceed 1 cr ?

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4 Replies

CA PRAMOD CHADA (QUALIFIED CA. CS FINALIST) (130 Points)
Replied 21 October 2021

Yes. pls refer article in Zerodha site. however, if there is a scope for directly filing ITR 3 without audit. one of my frnd filed ITR 3 directly and claimed loss. have to see whether there will be any complication in future.

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lakshmi swetha (3 Points)
Replied 21 October 2021

Could you tell me is it possible to file with negative figure ( losses) in new IT portal?

CA PRAMOD CHADA (QUALIFIED CA. CS FINALIST) (130 Points)
Replied 21 October 2021

Yes. but not in ITR 4 you can use ITR 3

Kev Men (788 Points)
Replied 22 October 2021

Since X wants to claim the loss of 150000, Tax audit will be applicable as profit is shown less than 6% of turnover. If you want to not do tax audit, you will need to forego the loss as well.