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Show loss in speculative activity giving error asking for audit.

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Anand K

Owner

30 Points Posted on 10 January 2022

I have loss in intraday trading (equity), intraday turnover less than 10 lakhs; first time doing trading. Other total taxable income less than 2.5 lakhs

ITR3 Reporting loss in Schedule Part A Profit and Loss / No Account Cases / Speculative activity 65i (ii) Gross Profit

As I understand audit and maintenance of books is not required in my case, but if I show loss in speculative activity then getting below error

Tax Payer has claimed loss under the head “Profits and gains of Business or Profession”/No account Case section(Part B) of Profit & Loss A/c; however, he has not filled the Part A - Balance Sheet and Part A - Profit and Loss Account and has not got the books of account audited.

How to overcome this issue ?

Replies (8)

Quick Summary

A user is encountering an error when trying to report a loss from speculative intraday trading on their ITR-3. Despite their turnover being under 10 lakhs and total taxable income below 2.5 lakhs, which should exempt them from audit requirements, the system insists on a Balance Sheet and audited accounts. The user is seeking guidance on how to correctly report this loss or if they should declare a presumptive profit instead to avoid issues with filing and future loss carry-forward.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121407 Points Posted on 10 January 2022

For claiming loss, P&L & BS are required to be declared. But now you will not be able to carry forward loss also.

So, better to declare 6% profit i.e. 60K profit in the no account case & file belated return.

Anand K

Owner

30 Points Posted on 10 January 2022

Show under Presumptive Income or Now Account Case ?

Anand K

Owner

30 Points Posted on 10 January 2022

Show under Presumptive Income or No Account Case ?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121407 Points Posted on 10 January 2022

Better not to declare under presumptive assessment.

Declare it .... UNDER NO ACCOUNT CASE...

Anand K

Owner

30 Points Posted on 11 January 2022

Under No Account Case whether as *business 64(i) or speculative 65(i) ?

* Under business it asks for gross receipts and not turnover.

Thank you very much sir.