is tax audit required if I have losses more than gains?

Taxation
1

Hi,

I have below gains/losses
1.) Intraday/speculative gain: 200/- (stocks)
2.) STCG: 13000/- (stocks: bought in August 2020 and sold in November 2020)
3.) STCL: -2000/- (MFs: bought in January 2020 and sold in September 2020)
4.) Non-speculative(F&O) loss: -60000/- (Sept 2020 - Dec 2020)
5.) Intraday/speculative turnover: 400/- (July 2020 - Dec 2020)
6.) Non-speculative turnover: 600000/- (Sept 2020 - Dec 2020)
and my taxable salary is 5lac after 80c exemption.
Q1.) Do I need a tax audit, If I want to show/setoff my overall losses for this FY20-21?
Q2.) What would be my new taxable salary If I submit/claim/setoff/carrtfwd all the above mentioned 4 gains/losses?
Q3.) Can I set off my FnO losses with STCG for this FY?

Can anyone please help me here? :slightly_smiling_face:

2

@Quicko can you.

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4

Q1) No Tax Audit is required as the turnover is below the threshold limit.

Q2) Your taxable salary remains same as you cannot set off business loss against your salary income.

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5

Thanks, @San78

Suppose If I earn interest from fd/rd,
1.) Can I set off my 60k losses with bank fd/rd interest?
2.) Which ITR should I file? is it ITR3 or ITR2?

6

@fno_investor

1] Yes, you can set off your FNO losses with FD or RD Interest.

2] You need to use ITR-3

9

Hi @San78,

Can I set off my FnO losses of -60000/- with STCG of 13000/- for this FY?
Non-speculative(F&O) loss: -60000/-
STCG: 13000/- (from the sale of stocks)

10

@fno_investor

Yes, Business Losses incurred in current year can be set off with short term capital gains.

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11

Hi @fno_investor,

  1. Tax Audit is applicable when:

Here’s a tool to help you determine tax audit applicability

2. Salary Income cannot be set off against your capital losses or loss from business income.
3. F&O losses are treated as non-speculative business activity can be set off against capital gains.

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