Last year (FY 2021-2022) I had intraday losses, so filed ITR-3 and carried forward the losses. This year (FY 2022-2023) I didn’t engage in any intraday trading and again want to carry forward the losses to the next year (FY 2023-2024).
I am using Quicko to file my ITR. After importing my data from the income tax portal and Zerodha and also filling in the remaining information, Quicko is showing to file ITR-2 and I don’t see any options to switch to ITR-3.
Now on the official income tax portal, I’m seeing the option to carry forward speculative business income in schedule CFL/BFLA of ITR-3 but not of ITR-2.
So, do I need to file ITR-3 to carry forward losses from speculative business income (intraday trading) of previous years even if I didn’t engage in any speculative business in the current year ? Or can I file ITR-2 in the current year (without declaring carry-forward loss of the previous financial year, since ITR-2 doesn’t have that option) and still adjust theose losses in the next year by filing ITR-3 ?
If you had reported the losses in FY 2022-22, then you can carry forward the loss for 4 years (as intraday is a speculative business income).
In FY 2022-23, if you do not have a relevant income to set off those losses, you can file ITR 2 and carry forward the loss if you had reported them earlier,
In FY 2023-24, in case you have the relevant income to set off those losses, you can file ITR 3 then.
So, Quicko is showing you the correct ITR, ie, ITR 2 to file for FY 2022-23.
Hence, you can file ITR-2 in the current year without declaring carry-forward loss of the previous financial year, since ITR-2 doesn’t have that option and still adjust those losses in the next year by filing ITR-3.
Yes, the loss is to be reported in the year when you incur the losses and the year when you want to set off the losses.
As mentioned, in case you have no FnO transactions last year, you can file ITR 2. Next year if you earn profits from FnO, you can set the same against previous year losses already reported in FY 21-22.