F&O loss and return

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  1. G.S. Bhatia

    G.S. Bhatia New Member

    I am a salaried employee. I incurred loss of 26 thoussand in F&O trading for two months. Since then I had stopped trading. I do not want to show loss in my return and also not to claim it against any proft in future. What is the way out.
     
  2. Manoj Mehra

    Manoj Mehra Active Member

    If you intent to claim this loss in future, you will have to file ITR 4 and disclose the same in the income tax return.

    If you dont intent to claim this loss in future, you can simply file ITR 1 which is for salaried employees and skip the loss from trading.
     
  3. G.S. Bhatia

    G.S. Bhatia New Member

    Dear Mr. Mehra

    Thanks for reply.
    While searching net, I came to know about Section 44AD which says is that if in case the turnover is lesser than Rs 1 crore and the profits are lesser than 8% of the turnover, an audit by a CA is mandatory or tax on 8% of turnover is to be given. That means even if one had incurred loss in F&O, he has to pay the tax or get his/her accounts audited.

    Secondly, if I do not show my loss in F&O and simply file ITR 1, then it is OK with IT authorities. Please clarify on the above two points. thanks
     
  4. Sahil Oberoi

    Sahil Oberoi Member

    Section 44AD is not applicable in your case.

    Yes, you can skip the disclosure of loss in ITR and its completely Ok with the Tax authorities
     
  5. G.S. Bhatia

    G.S. Bhatia New Member

    Is it also mandatory to show long term capital gain in ITR 1 or 2. Are long term capital gains taxable. I am salaried employee.
     
  6. Sahil Oberoi

    Sahil Oberoi Member

    Yes, you are required to disclose all incomes in the income tax return
     
  7. G.S. Bhatia

    G.S. Bhatia New Member

    Please clarify whether LTCG is taxable. thanks
     
  8. Sahil Oberoi

    Sahil Oberoi Member

    LTCG on sale of shares sold on stock exchange is not taxable.

    However, LTCG on sale of all other assets is taxable
     
  9. G.S. Bhatia

    G.S. Bhatia New Member

    In this case it is mutual funds purchased through SIP sold after 1 year. So LTCG is not taxable. Am I right?
    2. If I incurred some losses, can they be set off against LTCG
    3. If I incurred some STCG, will it be taxed and how can it be set off.
    4. Where should I mention LTCG or STCG in the ITR1 or 2

    Thanks.
     
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