F&O loss setoff against OS income in ITR3 getting denied by CPC

Taxation
1

Hi All,

Earlier i used to always file my ITR3 through to Quicko. This time I got my ITR3 field by a tax expert. There was loss in F&O in current year which is allowed to be setoff against all types of incomes except salary income. However, CPC is simply denying this setoff… I have no clue what could be the reason. My tax guy submitted rectification by changing the business code only, but no luck. setoff was not accepted again. is there any technical issue with my ITR form or is someone in IT department is simply denying it for no valid reason ? has anyone faced such issue ? Please help!

screenshots from intimation order -

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thanks!

2

Ask your tax expert to verify:

  • :x: No 44AD / 44ADA anywhere
  • :white_check_mark: F&O shown as Non-speculative business
  • :white_check_mark: Schedule BP item 35 (derivatives through recognized exchange) used
  • :white_check_mark: Loss flowing into Schedule CYLA
  • :white_check_mark: CYLA shows set-off against eligible income
  • :white_check_mark: CFL only if carry forward is needed
3

Is the return audited? If business income is less than 6% of turnover, the return needs to be audited by a licensed CA.

cc: @Quicko

4

Hi, tax audit is not necessary irrespective of loss or profit if turnover is less than 10 cr , since all transactions are digital.
@Quicko has confirmed it multiple occasions in this forum -

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1 Like
5

thanks! let me check .

6

Hello @BMohanty

Our team of tax experts can assist you in this matter.
You are requested to drop us an email on [email protected] with the notice and ITR form you filed.

Thank you!

7

@BMohanty if @Quicko does solve your issue, consider keeping us updated.