Hi, i am salaried employee, TDS has been already paid. But i ve short term gain on share trading of around 5000 /- & intraday loss on shares of around 15000 /- can i able to setoff this or else can i carry forward this? Having this which ITR form i have to file?
thanks in advance
Intra-day losses (from speculative business) can be set-off only against intra-day gains. Such losses can be carried forward for four assessment years and be offset only against gains from speculative business.
Capital losses from delivery-based trading can be set off against gains from investments, depending on whether they are short-term or long-term. Long-term capital loss can be set off only against LTCG and cannot be adjusted against any other other heads of income. On the other hand, short-term capital loss can be set off against STCG or LTCG. Also, unadjusted losses can be carried forward for eight assessment years.
ITR 4
Thanks Mr. Sharma, Does the intra-day gain/loss obtained by share trading falls under speculative business? Because one of the threads, there was debate between you and rudra few months back, where you have mentioned
(speculative losses can neither be carried forward nor allow to set off any income, except "speculation income" or "income from business and profession 'dealing in securities'")
https://nikitajain.caclubindia.com/forum/problem-regarding-itr-4-speculative-income-business-income-121718.asp
can you please explain more on this?
if the loss is big then you can carry forward, but filing of ITR4 and maintanance of all accounts as per business is now applicable against such business activity. for small amounts ignore it, as neither IT department is going to offer you any solution for loss made, nor they are reducing your tax burden, but the option that if in near future you would make gain from intraday then u will have option to set off this loss.
Thanks Sharma ji for your response.
I need your help once again. As my intraday loss is around 15000/-, and in future also i will do indraday, i want to carry forward my loss. can you please tell me Which all the below schedules i have to fill to show my intraday loss to carry forward. Rest of the itr-4 for income and short term capital gain i ve already filled. i am struck up with intraday loss (speculative) loss only.
nature of business
PartA-P&L
part A-BS
part A-OI
part A-QD
schedule BP, DPM,DOA,DEP,DCG,ESR
in the schedule CFL its not taking the current year loss (2011-2012).
CAclubindia
