How to show speculation loss in itr?

ITR 722 views 3 replies

Yash Jain

6 Points Joined September 2016

Mr.X does intra-day trading in different shares.

He has Sale Consideration/Sell Amount of Rs.1,00,000/- and Acquisition Amount of Rs.1,03,000/- Therefore, he has speculation loss of Rs.3000.

Now in ITR I have shown net profit as -3000 in speculation business. As I no books maintained it is asking to state turnover and gross profit,so I have shown turnover as 3000 and gross profit as -3000. But it is showing error that profit is less than 8%, it liable to get audited under section 44AB.

Replies (3)

rama krishnan

12244 Points Joined May 2017

just show rs. 6000 (6% of 100000) as income from speculative business

ACA Sarita Laddha

Practicing CA

1225 Points Joined May 2018

in turnover you have to show 100000 & loss is 3000 as the profit is less than 8% or 6% you have to get your account audited it will be a cumbersome
so as per my view as the loss is of small amount it's better not to show in itr

Nithin

Article Assistant

36 Points Joined January 2018

Mr. Rama Krishnan and ACA Sarita Laddha madam as of I know turnover isn't 100000. please read below.
Speculative transactions (intraday equity trading)

For all speculative transactions, aggregate or absolute sum of both positive and negative differences from trades is to be considered as a turnover. So if you buy 100 share of Reliance at 800 in the morning and sell at 820 by afternoon, you make a profit or positive difference of Rs 2000, this Rs.2000 can be considered as turnover for this trade.