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Share trading. no profit. need to show intaxreturn?

VK Iyer (Retired Govt. Servant) (54 Points)

12 June 2014

I am a Central Goverment Pensioner. Last Year (2013-14) I started Speculative Share Trading. Total Trade Value is more than Rupee 1 Crores for the year. No Gross Profit. As a pensioner I have to submit Tax Return.

Do I have to mention the transaction details of speculative Trading in the Tax Return?

In Share Trading do turnover has to do anything with tax return?

KIndly reply.

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4 Replies

KIYOSH (TAX CONSULTANT) (332 Points)
Replied 12 June 2014

Yes, In share trading turnover need to account.

If you trade in F & O than calculate your turnover either profit or loss for each transaction & F & O trading does not come under speculation business.

As you inform that there is no profit that means you incured loss & to c/f loss you have to show it in your return so that next year you can set off it against your speculation gain.

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Yogesh Goel (Chartered Accountant) (192 Points)
Replied 12 June 2014

It is preferrable to Disclose/filing of profit/ loss from speculation transactaction in your case. Since in such cases many times Income tax department recieves data from Exchange or other sources regarding such transactions in F & O/Share Trading trasnaction, in that event if you would have already reported these transactions in your IT Return, it will be cross verified in records of income tax that you have reported the same and there will be no problem. Otherwise, if they found that you have not reported, they may send you notice that you have done such transacitons in shares/Fd & O and have not reported the same. Hence, reporting is preferable to prevent from hassle of replying to Income Tax notices at later stages.

Additionally as mentioned by Kiyosh, it would be beneficial to you to claim losses in current year and set off it from income in next year if you have incurred losses in current year.

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