Penalty for not disclosing loss in ITR

This discussion clarifies the penalties associated with not disclosing losses from F&O trading in your Income Tax Return (ITR). It explains that F&O trading is treated as a normal business, requiring an audit by a practicing CA if your total trading turnover exceeds the threshold limit (currently ₹1 crore). Failure to disclose losses or comply with audit requirements can lead to notices from the IT department, potentially under sections like 142(1) or 143(2).