Treatment of losses in f&o and equity trading for salaried p

Hi Team .

I am Salaried person and has taxable income from salary and also deals in F&O and equity trading and incurred losses in both i.e loss in F&O trading of Rs. 20935/- with turnover of Rs. 40281/-  and  aggregate loss of Rs. 4258 /- from trading of shares ( equity)  with turnover of Rs. 290494/-.

Request your guidance on following points.

  1. Considering above scenario which ITR  to be filled.
  2. Do in need to maintain books of account
  3. What should I need to do to carry forward losses
  4. Do I need to do audit to C/f my losses ( considering above scenario) and turnover < 1 Crs.
  5. What happens if I do not show my losses and files ITR 1 only
  6. If I files ITR 3 without audit and not showing losses, what will be the consequences.
  7. Finally what is the ideal solution for above mention scenario.
Replies (1)

1. ITR 3

2 . Yes, as loss may have to carry forward.

3. Any loss from the business after adjusting it from other incomes except salary, to be carried forward.

4. No need of tax audit.

5. Income tax query under ITR

6. Why to take that step, no need.

7.  Ideally, show 6% profits over TO of about 3.30 lakhs i.e, about 20 K, pay tax over it (about 4-6K), forget to claim loss and relax.

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