Loss in option trading

436 views

Save Share

dhirendra

manager

21 Points Posted on 29 March 2013

I have a loss of 8 lacs in option trading and a loss of 200000 in intraday equity trading for fy 2012-2013

so while filing ITR how should claim it for relief or carry forward this loss or compensate it with my salary income. What will be document requirement for this

And which itr form i should file. I am a salaried person

if someone could help me in this matter it would be nice

Replies (2)

Sonam Bidasaria

742 Points Posted on 13 May 2013

1. As per clause d of proviso to Sec 43(5),

"an eligible transaction in respect of trading in derivatives referred to in clause [(ac)] of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) carried out in a recognised stock exchange;

Hence, loss of Rs. 8 lacs is non-speculative loss which can be carry forward for 8 Asst Years and can be set off against income under the head PGBP (irrespective of its nature being speculative/ non-speculative)

On the other hand, intra-day loss of Rs. 2 lac is speculative loss and can be carried forward for 4 Asst Years and can be set off against ONLY SPECULATIVE INCOME.

2. You need to file ITR-4.

3. No documents is required to be submitted as per Rule 12(2). However, the AO may ask for contract notes, if your files goes into scrutiny. So maintain all the contract notes properly until the assessment is done.

AMIT KUMAR JAIN

116 Points Posted on 15 May 2013

I do not agree with Sonam's 1st point.

The loss from trading in Derivatives of Rs.8 Lakhs as well as Intra-day Loss of Rs. 2 Lakhs from trading in Equity both are Speculative in Nature. Hence cannot be set-off against Salary Income.

You can ofcourse carry forward the Loss upto next 4 Assessment years.