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Urgent Tax Query...

Sagar (sd) (44 Points)

01 February 2011

A)Supoose A Female Employee Salary Of Rs.40000/- per month, has incurred loss in F&O of Rs.50000/- and Short Term Capital loss on shares of Rs.10000/- what would be the exact taxability for her income for A.Y.2011-12?

B)Is F&O is under Speculation Head of Income?

C)What would if she forgot to show F&O loss and STC loss in return and due date of filing the return is passed?

D)Would it be possible to furnish the losses in the belated return?

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7 Replies

Dhara (CA) (204 Points)
Replied 01 February 2011

F & O Loss / Profit comes under category of Business profession

U Can revise return.......

In belated return you can't carry forward your losses.

It is advisable to show the correct income/(loss) in your income tax return

3 Like

Pankaj Arora (Learner) (3134 Points)
Replied 01 February 2011

A) Income Or loss from F & O is business or profession income/loss.

B) Yes its come under business or professional income

C) No way to show this losses in return because as you saying that due date of revision return have passed.

D) No in belted return you can not consider any loss.

2 Like

Yogi Saraf (Audits & Taxation) (86 Points)
Replied 01 February 2011

A.) Loss in F&O segment and STCG cannot be setoff against salaried income. So the right course of action would be to file the return in the normal course and pay the tax on salary480000 less deductions under chapter VI-A (if any). The above losses can be carried forward for setoff from income in subsequent periods. Assuming no deductions available the tax liablity would be27810/- {[(40000*12)-190000]*10.3%}

B.) No, loss in F&O is not a speculative loss, it is treated as a normal business loss and can be setoff against other heads of income except income from salary.

C. & D) If the return is not filed and due date of return is expired then the loss cannot be carried forward, however refer Circular no.8/2001 which speaks about carry forward of loss in case of belated return subject to fulfillment of certain conditions.

1 Like

CA Jay Trivedi (CA) (103 Points)
Replied 01 February 2011

In any belated return Carry Forward Loss will not be there

1 Like

(Guest)

Originally posted by : Jay Trivedi
	In any belated return Carry Forward Loss will not be there

Yogi Saraf (Audits & Taxation) (86 Points)
Replied 01 February 2011

Dear jay and radhekrishna, please copy the below link on your address bar, it speaks about condonation of delay for carry forward of losses in case of belated returns :

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=CIR&schT=&csId=3364778e-e3c3-4b3f-a535-deea450da70f&crn=8&yr=2001&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

1 Like