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Intraday loss and ITR 3 filing

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Guest

I have made intraday loss, F&O loss for thhis financial year. If i dont want to carry forward this losses , is it mandatory to file ITR-3... If at all any notice comes whether it can be substantiated as it is loss....

Replies (5)

Quick Summary

This discussion addresses whether filing an Income Tax Return (ITR) is mandatory if you've incurred intraday and F&O losses, even if you don't wish to carry them forward. It clarifies that filing an ITR is a legal responsibility to report income, profits, or losses. The advice leans towards filing the return and carrying forward losses for potential future benefit, especially as F&O trading is considered business income requiring a Profit & Loss statement and Balance Sheet disclosure. The conversation also touches upon the applicability of ITR 4, presumptive taxation versus tax audit, and the implications of belated returns.

Parag

Proprietor

20 Points Posted on 15 February 2020

First we need to understand the requirement of filing of ITR. ITR means furnishing the information of your income, profits or losses. More than a compliance perspective it is a responsibility of the individual to file his return irrespective of income or loss. If you have filed ITR In previous years you should file for this financial year also otherwise you are non- compliant which is a big no no in eyes of law. Considering the notice it depends on grounds you receive it which as of now cannot be answered due to lack of information . My advice to you would be to file your return and carry forward the loss as this can be beneficial to you in the future

Kapadia Pravin

20 Points Posted on 16 February 2020

Before you decide your action plan, calculate turnover as per prescribed method.
It is mandatory to disclose loss as PandL and Balance Sheet is compulsory for business income. F&O is business and not speculation activity.

For carry forward , it's your decision to go or not go for it. If it's belated return, you won't get carry forward.

Guest

Posted on 23 February 2020

I have F&O turn over of 15 lacs and loss of 7.5 lacs apart from that intraday turn over of 2.75 lac and loss of 1.8lac.. Also STCG loss of 15k. Do i can file ITR 4 . Any body can suggest which will be economical presumptive basis or tax audit. pls do reply? Mostly i may not continue this trading activity in coming years..