ITR Filing for Profit / Loss from Stock Markets

General
1

Hi All,

I’m salaried employee and have some loss from stock market trading in Derivative markets in the FY 2013-14.

I heard that, Losses from stock market trading should be audited and verified by CA which can be carried forward and can be set-off for next 8 FY’s profit in the short term gains in trading. How far it is correct ?

Do you suggest any good online ITR filing services that can be done sitting from home ?

Quick and detailed response is highly appreciated.

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2

Kumar, 

Everything you need to know about filing returns is on our blog post Taxation Simplified. 

Yes if you have a profit of less than 8% of your turnover (your case as well), you need the books audited by a CA. 

Online ITR filing services are usually for only ITR 1 or ITR2 ( ITR1 if only salary, ITR2 if salary and capital gains)

Since you have traded in F&O, it is considered as a business and you need to use ITR 4 or ITR 4S, you will need to use a CA for this. 

Cheers, 

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What happens if

  1. Turnover is > 1 crore and profits > 8%
    Is Audit by CA required? Is Tax Filing required if Net income less than 2 lakhs?
  2. Turnover is > 1 crore and profits < 8% or incurring losses
    Is Audit by CA required? Is Tax Filing required if income less than 2 lakhs? Can losses be carried over to next year?
  3. Turnover is < 1 crore and profits > 8%
    Is Audit by CA required? Is Tax Filing required if Net income less than 2 lakhs?
  4. Turnover is < 1 crores and profits < 8% or incurring losses
    Is Audit by CA required? Is Tax Filing required if Net income less than 2 lakhs? Can losses be carried over to next year?
    @ Nithin, could you answer Yes/No for all these 4 categories.
    Also, is there any way other than CA to do this audit? How income tax dept knows that we have done the audit? Does CA file some audit report to IT department?
    Thanks
    Edit, got the answers from tax related posts from zconnect. Thanks Nithin.