Itr-2 filing - queries about exemptions and cfl

ITR 956 views 5 replies

Harsha

Software professional

214 Points Joined May 2011

Dear experts,

This year's ITR-2 looks very detailed compared to last year one!

For AY2014-15, I am filing ITR-2. Though my income is far less than the minimum bracket, I am filing returns to carry forward my accumulated Stock Trading Losses and get back TDS (deducted by the bank for FDs). My income was from bank interests, company dividends and a little profit from stock trading.

My queries

1) I drew no salary for this year. So I believe in the page "PARTB-TI-TTI-SAL", I can leave all fields vacant, except my bank account details. Please confirm.

2) I have paid insurance premiums, House rent, charity donations (80G) etc. Since my salary income is ZERO, does it make any sense to fill in these details? Are these are applicable to only salaried income or total income?

3) Since some years, I have been accumulating short term losses under stock trading. But last year (AY2013-14), I made a small profit. How can I reduce/re-adjust my accumulated short term losses under CFL. I find no way to show my profits for 2013-14. Should I just leave that row vacant? Do the servers of IT department take care of that?

Regards,

Harsha Vardhana R

Replies (5)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

1. you are not required to fill details regarding salary. all other details should be filled.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

these deductions can be claimed by everyone. ins. premium (80c), rent paid (80gg), donation (80g) should be deducted from total income of all individuals. however in your case, since your income is far below basic limit, as stated by you, you dont need to bother to claim these deductions.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

3. you should have adjusted losses against the profit while filing your return for AY 13-14. it cannot be adjusted against that income now. you can adjust those losses again stcg/ltcg of current year (i.e. AY 14-15) only.

Harsha

Software professional

214 Points Joined May 2011

Thank you, Tribhuvan! You made my work very simple!

Yes, I see my STCG of AY13-14 reducing my total taxable income of that year.

Does that mean that it hasn't affected my accumulated losses of previous years? I also see that "Total Loss Carried Forward to future" under CFL also getting reduced by the same amount (STCG). That is the doubt. I find no way to get the recalculated CFL (last year) under the current returns, if I leave losses for 13-14 as blank.

Regards,

Harsha Vardhana R

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

how could a gain reduce your taxable income for AY 13-14. if it was gain in last year then your loss would have reduced by such gain thats why CFL is also reduced.