Income tax return- f&o

My queries are specifically related to income tax return - Futures & Options.

Background:

I have gross receipt of 12lacs by trading in F&O, and incurred a loss of 120000/-. I have to file return only to carry forward the loss.

Queries:

  1. If i file return u/s 44AD, can i show loss of 120000/- u/s 44AD(5)? If yes can i carry forward that loss?
  2. If i file return u/s 44AD and showing loss is appropriate i will have to file return in form ITR 4 because ITR4s does not allow to show income less equal to 8%. So i will have to show my loss under A-4(profit or loss under section 44AD,,,,,,,) of BP sheet. Is my understanding correct?
  3. Is filing under normal provisions more better than u/s 44AD as i dont have any asset, expenses etc.? What are the point i need to take care while filing return under normal sections of Income Tax act.

 

Replies (1)

You have to set off short term loss with short term gains and calculate tax at special rate.

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