• Donot want to carry forward intraday loss

Sir,
usually i do delivery based trading and i got loss about 5.00 lacs in it. at the same time while doing delivery trading i have loss of 15000 in delivery based intraday with 250000 turnover.
now i donot want audit.
should i fill itr2.
if itr3 how will i show intraday loss while i dont want to carry it forward.
if its mandatory audit how much it is cumbersome and expenditure for it.
Asked 4 months ago in Income Tax

If your total income is below 2.5 lakh and your turnover is below 1 crore no need to audit your accounts.

Since you are only having loss why do you wish to file return of income?

What you are going to disclose in ITR 2?

We can have a phone consultation if you wish.

 

Hope you find the information useful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

- You can claim the loss without audit.

- File ITR-3

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

Hi

 

If your total taxable income is less than 2.5 lacs, you can file return and carry forward the losses. In this case, audit shall not be required.

 

We may discuss the issues further over a call.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

Hello,

 

ITR-3 would be filed.

If you don't want to carry forward the loss and your total income is below Rs. 2,50,000, then the tax audit requirement won't be there.

I hope that this answer satisfies your requirements. 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

1. You can claim losses without any Audit.

 

2. ITR 3.

 

We may assist you in ITR filing.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

- In case of pension of Rs.8 lacs, either you have to go for audit or pay tax on 6% of the turnover.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

In that case you need to show profit of atleast 6% on the turnover.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

In that case, audit will be required. 

 

 

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

In case you don't want to carry forward the losses, another option would be to show profit @6% as per presumptive taxation under section 44AD and pay taxes accordingly.

 

My suggestion would be to go for tax audit.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

As per law if its your first year of business and your turnover is below 1 crore then you can show loss without getting your accounts audited. But it is debatable and since the amount is less and you dont wish to carry forward loss file return under 44AD and show 6% profit of turnover.

 

If you need detailed discussion feel free to contact me.

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

Dear Sir,

 

You can take the benefit of presumptive taxation scheme u/s 44ad.

 

The scheme can be used by businesses having a total turnover of less than Rs 2 crore in a financial year. Those who adopt PTS to file their returns are not required to maintain books of accounts.

 

Under PTS, the eligible businesses can estimate their net income at the rate of 6% of the total turnover, if gross receipts are received through digital mode of payments or at the rate of 8% in case of cash receipts. However, the assessee is allowed to willingly declare income at a higher rate than the minimum of 6-8% of the total turnover.

 

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

You can't claim intraday trading loss without a tax audit.

if you don't want to take claim and carry forward the loss, you can use Sec. 44AD.

For further understanding, you can contact us directly at or take a phone consultation.

 

Regards,

CA Hunny Badlani

 

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

Irrespective of the fact whther you want to carry forward loss or not if your total transaction i.e. your sales value of transaction if exceed Rs. 2 Crore than mandatory to get the audit done.

 

Unless its F & O loss than audit will only apply in case your profit and loss totals to more than Rs. 2 Crore

Vishrut Rajesh Shah
CA, Ahmedabad
744 Answers
18 Consultations

5.0 on 5.0

- Loss or Profit in delivery based trading is treated as capital gain or loss and not business income. In such case, you are not required to maintain books and get them audited.

 - Trading in F&O is treated as business income. Either claim loss and get books audited or show income of 6% of the turnover without getting books audited. 

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

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