Derivative loss treatment
Girish Khandelwal (26 Points)
03 January 2021
if derivative loss in f.y. is 100k, will this go in audit or should if no audit to be done how to treat this??
6 Replies
ayusmita
(Tax consultant)
(5890 Points)
Replied 03 January 2021
No it will not go for audit as for loss .
derivatives trading is non speculative business income hence it is treated as business income and added to other business income in 44ad and shown in ITR3
derivatives trading is non speculative business income hence it is treated as business income and added to other business income in 44ad and shown in ITR3
Smit Shah
(524 Points)
Replied 03 January 2021
Please do the aggregation of all profit and loss in absolute term and then check whether it is exceeding the threshold turnover limit as per 44AB
Girish Khandelwal
(26 Points)
Replied 03 January 2021
Total derivative loss is 10,30,500 and derivative profit is 589000
Smit Shah
(524 Points)
Replied 03 January 2021
As this is below the threshold limit mantioned in 44ab no audit is required but as loss is huge advisable to get audit.
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