Need your advice I am an Indian resident salaried person. During FY 2020-21, I have traded in shares Intraday, Futures and Options,...in addition to regular buying and selling shares of listed companies. Income/ losses during FY 2020-21 as follows Salary income about Rs 56 lac House property rent income Rs 2 lac Savings bank interest Rs 1 lac Interest on fixed deposits Rs 0.4 lac Other Interest Rs 0.24 lac Intraday trading loss Rs 0.42 lac Futures and Options loss Rs 4.2 lac. STCG Rs 3.9 lac LTCG Rs 0.7 lac Dividends Rs 0.2 lac Please reply POINTWISE 1) Which form I need to fill up ITR2/ITR3/ITR4 2)Where can I set off intraday speculative loss of Rs 0.42 lac, against STCG, LTCG,... 3) Where can I set off Futures and Options loss Rs 4.2 lac? Against House rent income Rs 2 lac, then interest about Rs 1 lac, then STCG Rs 3.9 lac, then LTCG Rs 0.7 lac 4) In which order can I set off F&O loss? First deduct house rent income, then interest income, then STCG, then LTCG?? 5) Is it must to carry forward unadjustable losses?? 6) How turn over calculated for Futures and Options? 5) Futures and Options turnover less than Rs 5 cr, all transactions through HDFC Securities, no cash transactions,... Loss incurred in F&O Rs 4.2 lac. Is tax audit mandatory? If yes, under which section? 6) Are books of accounts required to maintain 7) Do I have to fill up manufacturing account, trading account, balance sheet, profit and loss,... ++++++×
Hi
1. ITR-3
2. Speculative loss can be setoff only against speculative income. It can be carried forward and setoff for subsequent 4 assessment years.
3. In the first year of loss it can be setoff with other heads of income except salary. Can be carried forward and setoff for subsequent 8 assessment years.
4. LTCG u/s 112A is exempt upto 1 lacs. After exemption of 1 lacs, it is taxable at special rate of 10% without indexation. STCG is taxable at special rate of 15%. All other incomes are taxable at slab rates which is 30% in ur case. As you are falling into 30% tax slab alongwith 10% surcharge, setoff loss first with other incomes.
5. No subject to other factors
6. In future and intraday, it is absolute sum of profit and loss. In case of options, absolute sum of profit and losse and premium value.
7. What is exact turnover (I.e. turnover of intraday and F&O)?
8. Depends on complete facts
9. Yes
10. Also fill schedul AL
11. Reconcile the info with AIS and TIS
For detailed discussion, U may opt for phone consultation.
Hello,
1. ITR-3.
2. Speculative Loss can only be set off against speculative income. It can be carried forward for 4 years.
3. F&O Loss would be covered under Non-Speculative Business Loss which can be adjusted against any income other than salary. It can be forward up to 8 years.
4. Yes, this priority set-off would be fine.
5. Unadjusted losses should be carried forward.
6. In case of Futures, absolute sum of profit and loss while in case of options, absolute sum of profit and loss plus premium received.
7. Depends upon turnvoer and other facts.
8. Yes.
9. Profit & Loss account and Balance Sheet. Additionaly since income is more than Rs. 50 L Schedule AL would be mandatory.
I hope this answer satisfies your requirements. For a detailed resolution of your query, you can contact us directly at badlaniassociates at Gmail or take a phone consultation.
Regards,
CA Hunny Badlani
Badlani & Associates
Hi,
1. ITR-3.
2. Speculative loss can only be set off against speculative income and not against STCG/LTCG. You can carry it forward for 4 years and set-off against speculative income in future years.
3. F&O Loss is a business loss which can be adjusted against any income other than salary. So yes you can set off against rent, interest, LTCG/STCG. Any unutilized amount can be forward up to 8 years.
4. Yes the set-off priority is correct.
5. Unadjusted losses should be carried forward to claim against the incomes in future.
6. The turnover of futures is to be computed by taking sum of profit and losses (even the losses are to be added) and in case of options, the sum of profit and loss plus premium received is to be considered. If the same exceeds Rs. 5 Crore, then TAR needs to be furnished.
7. If your turnover exceeds Rs. 10 Lakh in any of 3 years prior to the current year or business income exceeds Rs. 1.2 Lakh then you need to maintain BOA
8. If answer to 7 is yes, you need to fill Trading, PnL and Balance sheet. Further, since income is more than Rs. 50 Lakh you need to fill Schedule AL.
I hope this clarifies. For a detailed resolution of your query, you can contact us directly at [deleted] or take a phone consultation.
ITR 3.
You can set off such loss against any income other than salary.
You can set off loss from F&O also against any income.
I would recommend to either book consultation with me or file ITR with experts for further discussion of various pending queries.
To book click here: https://www.taxontips.com/income-tax-return/
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Thank you
