Hi Nithin Is it wrong for a Longterm investor usingITR2 to show F&O profit in schd OS if he is ready to loose benefit of expenses and carryforward loss

General
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F&O taxation

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Hi Anjuadar,

In my opinion you shouldn't be filing ITR 2 if you have F&O profits, please check this answer if it solves your query. 

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Anju, on your ITR2 you can show only your capital gains. There is no provision to show anything other than that.

F&O trading is considered as a business income, you can see the following act: Section 43(5) of the Income Tax Act, 1961

Since you are considered as a business if trading F&O, you have to use ITR4 or ITR4S, even if you are ready to loose benefit of expenses or carry forward loss.

The risk of not declaring F&O business is that, exchanges share turnover data with the IT department. If not declared, it can come back to haunt you tomm.

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Do check this post for all your queries: http://zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified