INTRADAY LOSSES OF EARLIER YEARS , CARRY FORWARD IN NEXT YR 2023 -24

Taxation
1

Hi Community. @Quicko
Will be thankful if someone helps me out

FY 21-22 ,INTRADAY LOSSES = 619, INTRADAY TURNOVER =2480

FY 22-23, INTRADAY LOSSES=4419, INTRADAY TURNOVER= 22137

FY 23-24,INTRADAY LOSSES =1115,INTRADAY TURNOVER =7114

All these are my intraday losses on equity segment fr last 3 years…NOW I AM DOING SWING TRADING AND MAKING MONEY IN MKT AS STCG BUT NOT MORE THAN 2.5 LAKHS( NO OTHER INCOME)…ALSO I have come to know about benefits of uploading losses to get TAX RELEIF IF IN FUTURE I MAKE MORE MONEY AND BECOME TAX LIABLE.

SO CAN ANYONE TELL ME, WILL I BE ABLE TO CARRY FORWARD LOSSES OF FY 21-22 & FY 22-23 , IF I FILE NILL ITR IN 23-24 YEAR ENDING ???

2

Hi @AV88

Losses from Intraday Trading come under Speculative Business Loss and can be carried for the next 4 years only if ITR is filed on time. You can set off speculative business losses against speculative income.

While the above rule is meant for those filing under the old tax regime, I’ve read somewhere that we cannot set off these losses if we opt for the new tax regime. @Quicko can you please confirm?

1 Like
3

Hello @AV88,

As correctly mentioned by @Meher_Smaran, you can carry forward the losses only if the ITR is filed before the due date i.e. before 31st July.

Intraday is considered a speculative business, the losses can be adjusted only against speculative income and can be carried forward for 4 years. The losses can be carried forward under both regimes.

Hope this helps!

4

Sir @Meher_Smaran nd @Quicko team…thanx for ur prompt reverts

STATING THE REAL SCENARIO.

I DID NOT FILE ANY ITR TILL 31ST JULY
+
I DONT HAVE ANY OTHER INCOME (BESIDES STCG LESS THAN 2.5 LAKHS)

NOW WHT CAN I DO IF I WANT TO CARRY FORWARD MY LOSSES TO NEXT 4 YEARS.
IS IT POSSIBLE FOR
FY 21-22 LOSSES TO CARRY FORWARD TILL YEAR 2026
FY 22-23 LOSSES TO CARRY FORWARD TILL YEAR 2027

OR WILL THE CARRY FORWARD BE ONLY APPLICABLE FOR FY 23-24 IF I HAVE THE OPPURTUNITY TO FILE ITR NOW?

5

Hello @AV88,

You cannot carry forward the losses for FY 2021-22 and FY 2022-23.

To carry forward the losses it is essential to file ITR before the due date of 31st July. Hence, the carry forward will be applicable for FY 2023-24.

Hope this helps!

1 Like
6

THNX SIR.

1 LAST QUERY
WHEN (DEADLINE)CAN I FILE ITR NOW (NIL ITR coz of stcg less than 2.5 L & no other income) , TO CARRY FWD SPECULATIVE LOSSES OF FY 23-23.

1 Like
7

Hello @AV88,

For FY 2022-23, 31st December 2023 is the due date to file a belated return and for FY 2023-24, the due date will be 31st July 2024.

Hope this helps!

1 Like
8

Hi @Quicko

Are u sure i will be able to carry my intraday losses of FY 2022-23, if i file belated return before 31dec 23.