Futures and options tax

Loss from futures and options is treated as non-speculative loss and can be carry forward and set off for eight assessment years. You can set off the loss of Rs. 1.2 lacs against the income of Rs.2.30 lacs and the balance profit would be taxable @30%. You can claim all the business administrative expenses incurred (if the income is shown under the head PGBP).

Hi

If the returns were not filed in the 2 years, losses cannot be carried forward and set off is not possible in current year. The loss of 2014-15 can be set off.

The tax rate will be according to slab rate I.e. 30% in your case.

Hi,

Losses of the previous years need to be carried forward to each subsequent year till they are set off. However the maximum years allowed are 8 years.

In your case, if you have not filed the return at all, then you cannot set off your losses against current year's income. But if you have filed some other ITR form in subsequent years that is 2015-16 and 2016-17 and carried forward the losses for 2014-15, then in the current year you can set off the profit from such loss.

Further, considering your 30%slab rate and I assume that you have set off your loss (2.3 lakhs-1.5 lakhs), the taxes on the balance income would be 24720/- including tax and education fees.

These taxes do not include interests that would be levied as you would not have paid any installment of your advance tax by March 31. So interest will be additionally computed while filing the income tax return.

Thanks

Damini

Hi,

Considering that you have filed return for FY 2014-15 on or before the due date, you will be allowed to set off the losses with current year profit.

Further, you can reduce all business expenses. You will be Liable to pay tax @30%, if you are in that slab.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi,

Loss from futures and options can be carried forward and set off for 8 assessment years but it is mandatory that you file returns in all the years.

Since you have not filed returns for 15-16 and 16-17, you will not be eligible to set off those losses with current year profits. However, you can set off 1.2 lakhs of 2014-15 with current years profit and pay tax on the remaining profits @30%.

You can claim all business related expenses and that can be deducted from the total profits.

Hope that clarifies.

Regards,

Nikhil.

Hi,

Carry forward of losses (other than loss from house property and unabsorbed depreciation) is permissible if the return of income for the year, in which loss is incurred, is filed in time. The late filing of return should not impact the status of carry forward of loss of previous years. Past year losses can be set-off against income from that respective head of income .

So, your profit will reduce by setting off such loss. You can claim expense brokerage charges, Telephone charges, Internet charges, advisory charges, travel expense, depreciation on any fixed asset used for the business, travel expense., etc.

Hello,

Yes, it can be offset against the losses made in 14-15.

I am assuming that the return was filed in time and was also audited by a Chartered Accountant.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Please call

Hi,

The tax liability would be computed on the basis of the tax slab applicable on your total income.

If this is the only income you have during the year, then tax liability shall be nil.

The charges for filing ITR 3 shall be 3,000/-.

Regards

Damini

Hi,

You need not pay any tax if your income is below 2.5 lacs.

For fees, request you to please drop us a line on caabhishekdugar@gmail or share your contact details

Hi

If this is the only income you have, there shall be no tax liability as income is below 2.5 lacs. However, return shall have to be filed.

For charges, you may contact on lakshita.bhandari@gmail

Hi

There will be no tax liability if this is the only income you have. However, return will have to be filed.

You can reach out to me at [deleted] or at [deleted] for further discussions.

Regards,

Nikhil.