How to file my IT returns -with loss in share market.
I am a private company salaried employee with nil deduction Income tax holder. From last 4 years I am fail to file my IT returns bcoz i have been trading in derivatives Share market but I got losses every year from last 4 years( (-)80,000/- , (-)123,000/-,(-) 58000 & (-)158,000 . Here my query is can I show my losses in IT returns from last 4 years..? if it is possible how to file my returns..? In which form-ITR -1/ ITR-2/ ITR-3 /ITR-4 . I have file. What are the documents required . Kindly guide me with full details.
Asked 10 months ago in Income Tax from Vijayawada, Andhra Pradesh
You have to file your ITR on or before due date (generally 31st July) for c/f loss which can be adjust in future year income, but as you dont file the same on time thus loss cant be c/f but you can still file your ITR of AY 2016-17 & 2017-18 by March 2018.
For AY 2016-17 choose ITR FORM 4
For AY 2017-18 choose ITR FORM 3
You can file belated income tax returns for FY 15-16 and 16-17. However, since these would be late returns, although you can declare the loss occured, but you cannot carry forward these losses for adjustments in future profits.
You will have to get your accounts audited in order to claim the loss which you have not done and now you can't claim the losses since your return would be belated.
You can file IT returns only for the financial years 2016-17 and 2015-16 latest by 31st May 2018, as belated returns. However, you cannot claim carry forward of your losses, as the returns were not filed in time. However, such losses can be set off against income from other heads, other than salary.
You can currently file returns for only FY 2015-16 and onwards, since the earlier years have become time barred. Also, trading in derivatives in considered as a business activity and business loss is not allowed to be set-off against salary income. For FY 2015-16 file ITR 4 and for FY 2016-17 file ITR 3.
You will need your Form 16 issued by your employer as well as complete details of the derivative trading to compute the losses.
M.Com., CA, LL.B
CA, Greater Mumbai
You can file IT Returns only for 2 years as per rule. It is must to file returns if you are trading in Derivatives.
Need to check your turnover as in case of derivatives the total turnover need to be checked as the same will come under income from business head.
No you cannot do so since it is time barred. You may revise your recent two returns i.e FY 2015-16 & 2016-17 if you want to do so. You will have to file ITR-4 in FY 15-16 and ITR - 3 in FY 16-17.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP