Income tax filing

If your freind is Day trader in both Equity and Derivatives i.e, without delivey of shares, then it is nothing but business and accordingly ITR-4 will applicable and show as business loss.

In case of Equity loss, same loss can be shown under capital gain head if it is traded on delevery basis.

Anyway for getting benefit of carry forward of Capital loss, one has to file IT return within due date.

For FY 2011-12, due date is 31st August, 2012.

The above 5,00,000 loss is a speculation loss and 15,480 is capital gain loss.

Adjustment accordingly u/s 72 etc.

If adjustement not possible can be set-off in next year under respective head only.