One of my Friend has Trading Losses as following:
Trading loss on F & O - 500000
Equity Loss - -15480
How does i take this in income tax Returns>?
How to show this loss? Please help me on this/.
Vignesh Shekar (Article Assistant) (66 Points)
07 August 2012One of my Friend has Trading Losses as following:
Trading loss on F & O - 500000
Equity Loss - -15480
How does i take this in income tax Returns>?
How to show this loss? Please help me on this/.
Noor Punasiya
(Article)
(275 Points)
Replied 07 August 2012
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 07 August 2012
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.
Vishal Bagmar
(ITP)
(50 Points)
Replied 07 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.
CAclubindia
