How to treat losses from f and o trading in itr

Tax Treatment of Trading Losses:- Speculative vs. Non-Speculative Losses: Trading losses can be categorized as either speculative or non-speculative. Speculative losses arise from transactions where the settlement is done through differences, such as futures and options trading. Non-speculative losses, o the other hand, arise from transactions where the underlying asset is delivered. 

Set off  and Carry Forward: Speculative losses can be set off against speculative gains. If there are no speculative gains, the losses can be carried forward for up to four years to be set off against future speculative gains. Non-speculative losses can be set off against any income under the head "Profits and Gains of Business or Profession" or "Capital Gains". 

Treatment of Expenses Not Mentioned in Broker Statement: 

Claiming expenses: If expenses are not mentioned in the broker  statement, they can still be claimed as deductions if they are incurred wholly and exclusively for the purpose of trading. However, the onus is on the taxpayer to prove that such expenses were incurred . 

Documentation: It is essential to maintain proper documentation, such as invoices., receipts, and bank statements, to support the claim for expenses. 

Income Tax Return:

Reporting Trading Losses: Trading losses should be reported in the income tax return under the head "Profits and Gains of Business or profession".

Disclosure: The taxpayer should disclose the details of trading losses, including the type of trading (speclative or non-speculative), the amount of losses, and any expenses claimed. 

Hello Sir

Thankyou for your response. I have a follow up query, when the person has suffered net loss from f and o trading, how are the losses to be declared in ITR as a non speculative business, as in what should be the turnover?, can this person claim losses as an other expense.

Thank you.