Can I file loss to ITR without any Audit?

Hi ,
I have a loss in F&O trading and some profit in Equity trading and as a whole having loss. Can i file the loss on my own without any help of CA. If so does ITR 4 is sufficient? Any pointers would be helpful.

Hi @Mani_Kanta
you can go through the link cleartax. happy trading

If your total income (including salary and everything) is less than 2.5lks (no tax to be paid), then no need to get audit. But otherwise yes. If you generally trade actively, best to get an audit done. Check this module:


I’m a beginner equity trader . wich itr I have to file . and one thing. I’m in loss . so I have to fill itr??

@Mani_Kanta ITR-4 is to be filed in case assessee opted for PRESUMPTIVE tax scheme in which the assessee needs to pay tax on 6%/8% of its total turnover…Once an assessee opted for PRESUMPTIVE tax scheme then he/she has TOTAL TURNOVER above 2 CR than TAX audit is required…

Income from FnO is being treated as NON- SPECULATIVE BUSINESS and hence any LOSS from FnO can be carried forward upto 8 years…

It would be better to take help of professional if it is not really expensive…

Thank you @anuj . My turnover is less than 2cr (less than 50lakhs) Is there any other form other than ITR4 to file loss in F&O trading?

Hi Mani,

Yes ITR-3 which is being used in case you do not go with PRESUMPTIVE tax scheme and ready to pay whatever is your prfofit which comes out from your business …

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Thank you @anuj. One more doubt I have is
I am having a profit from equity (say +50,000) and loss in F&O trading(- 110,000). Here ideally the overall loss is -60,000.
But when I fill the form (excel utility) I entered profit of equity in CG(Capital Gain Sheet) and loss in Business it is not taking the overall loss as -60,000 instead it is saying to pay tax for the 50k profit this year and carry fwd the loss of 1,10,000 for the next year.
Is there any way to file the overall loss as 60K instead of paying tax for the profit and carry fwd the loss of -60,000 to next year.


Becoz you have to decide if you do your trading as BUSINESS or as INVESTMENT purposes (which normally decides based on volume of such transaction in a year),

If it is BUSINESS purposes then show the equity related profits/ loss as NON-SPECULATIVE business category which is similar for FnO as well and then SETOFF is allowed…

INTRADAY trading related income WILL ALWAYS be TREATED As SPECULATIVE BUSINESS and hence it is not allowed to setoff with above incomes which are non- speculative as per Income tax act …

Conclusion: show the 50K also as business income then you will be able to get set off and balance loss can be carried over for next 8 YEARS…however if it is SPECULATIVE category (e.g. INTRADAY) then any losses can be carried forward upto 4 YEARS only…


Hi, by total turnover you mean turnover over of : short term gain+ F&O turnover + Intraday turnover or Can turnover of only F&O and Intraday and show short term gain as capital gain separately

once yur stock trading falls under a category of business (being frequency of transactions are more) then all short+long (whatever) will be taken into consideration for TURNover calculation…in case Futures/ Intraday you need to take NET PL for the purpose of turnover AND total of SELL amount in case SHORT/LONG sale of shares etc…hope this is helpful

Anuj I had around 60 F&O trades. Around 70 Intraday. Loss in both types of trades. But Short term sale of shares fetch me profit of 180000. And FD interest income of 132000. No tell me what to do? Show my income as business income and report F&O loss, or just show gain from short term trading as capital gain and pay tax on it. I thing FD + short term share gain = 180000+132000 = 312000 will come under tax liablity. Right? I want to avoid audit so I don’t want to report FO/Intraday loss. Is it right way to do it?

Suppose you have a FNO trade which has net loss of 100,000 and second one has profit of 20,000 and third one is in loss of 300,000 then your total turnover will be 100,000+20,000+300,000=4,20,000 (for tax audit purposes)…now when you mention you have some odd 60 trades in f&o and 70 in intraday then please calculate the total as mentioned above…if find yur total exceeding 1 crore then TAx AUDIT is mandatory (i am assuming you have never used ITR 4 0r presumptive tax scheme)…now , even if you do not cross this limit by 1 crore and you find you have overall LOSS for example - loss of 500,000 (assumed) and on other hand you have profit in selling shares which is around 180,000 and some FD interest then i would suggest you to have a look at the below -

case one- (when you have FNO loss + gain on selling shares) + other sources income (i.e. FD)

Loss in FNO (other than intraday day sale of shares) = 500,000

  • Profit on selling shares = 180,000
    Net loss in business (trading business) 320,000

Less - Other sources income (fd) 132,000

Net loss 188,000

THIS LOSS can be carried over for next 8 years (other than speculative loss i.e Intra-day shares) and hence no TAx to be paid now.

Second case - Where you would have already filed your last year ITR using presumptive tax

You need to get your accounts audited compulsory (even if it is belo 1 crore) sine you have loss

Third case- When you only claim your capital gain + fd income then you ll end up paying tax and there is a likely possiblity that you ll get income tax notice for not showing your fno transaction in yur ITR

hope this will work…

Hey ANUJ, appreciate your help. Please check these. i have done calculations ass suggested by you.
I have added turnover as suggested by you.

F&O turnover = 1046865 loss= -225925
Currency TO = 87522 loss= -86207
Inraday TO = 240390 loss = -84735
Short term To = 4987457 profit = 179699

Now If I add all turnovers. It is (1046865 + 87522 + 240390 + 4987457) = 6362234 (less than 1 crore). So tax audit is not mandatory as per your explanation above.

Loss in FNO(other than Intraday) = 225925

  • profit on selling shares = 179699
    Net loss in Business (trading business) 46226

Less - Other source of Income (FD interest) 130384

Now what to do further. Subtract FD interest from Net loss in business or subtract net loss in business from FD?
You subtracted FD income from net loss in business. If I do that 46226-130384. I get a negative value -84158 . Is this loss or profit?

Is AUDIT needed here? I read somewhere that if turnover is less than 1 crore and profit less than 6% of turnover than audit is required.

Eagerly waiting for reply!

your total business loss an be sett off with Income fro other sources (which is fd int)…thats how you will have overall net loss which could be carried fwd to next 8 years…intraday loss can be carried over for 4 yrs only…now, if your income is less than 6%/8% then tax audit is must only where you would have OPTED presumptive tax scheme in previous yrs…

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I have not opted for presumptive tax scheme previous year. And overall there is net loss as you know from above discussion. And turnover is less than 1 crore. So no audit needed. Do I still have to maintain books of accounts to carry forward loss. Will P&L statement, contract notes, ledger provided by broker and bank statements be sufficient for me. I have no other business. Only share trading and income from FD.

then there is no need for tax audit…books of accounts to be maintained and YES it is sufficient info that you mentioned…no need to worry…hope this was useful for you…

Thanks a lot Anuj. You really helped me out in detail. Last one: :smiley: I need to fill ITR 3 form . If you have filled it can you share entries to be made in balance sheet and P&L and what goes inside it

if your an accounting guy then entries should not be a problem for you, but in case yu dont then u need to take help of a professional…even if i tell some entries then you ll not b able to get PL & BS…hope this will help

Hi Anuj,

In My case is tax audit and balance sheet mandatory ?

  1. Loss in options : 38834/- (Total TurnOver 13,68,772/-)
    2.Profit in Intraday : 490/-(Total TurnOver 198,222/-)

CA suggested me to pay 0.5% penalty in case any audit notice come. I am confused here. Please help

Kind Regards,
Ganesh Gade