Need some enlightenment on my Tax Filing

Taxation
1

Hi all,

I’m a salaried employee. I have some losses in F&O and intra day trading activity. I sold RSUs obtained from my company within a year (I understand this will be taxed as STCG) My question is can I offset my F&O losses with the STCG from RSUs. Also if I decide not to carry forward my losses can I avoid ITR-3.

Any help is appreciated.

2

@Quicko can you?

3

Hey @Bhargav1

Under F&O Trading, the loss can be carried forward to future years and set off against future profits to reduce the income tax liability.

Loss from F&O Trading is a Non-Speculative Business loss. In the current year, it can be set off against any income except salary income. In future years, it can be set off against business income (both speculative and non-speculative). The trader can carry forward the loss for 8 years.

As stated earlier F&O Trading is considered as Non-Speculative Business and ITR3 is applicable for individual and HUF who have income from profits and gains from business or profession. In your case you have to file ITR3 as you have F&O Transctions, and it is important to disclose that information to avoid any message from the ITD for non disclosure of transctions.

Hope this helps!

2 Likes
4

@Quicko
1.) what is the profession code in ITR3 for indivual who have F&O trades to file as a business?
2.Do you provide CA for Tax audit ?(as profit is less than 6% of turn over)
If so, what is the charge for filing Trader Return apart from the charges you are showing in portal?
3. If you can perform tax audit ,what documents you need if it involves 1 more broker apart from zeridha ?

5

Hey @brokenbull

09028 is the business code i.e. retail sale of other products (n.e.c) for indivual who have F&O trades.

Any practising Chartered Accountant with a valid Certificate of Practice (COP) can conduct a tax audit.

Quicko is an online tax filing platform. However, when our customers have audit requirements, we connect them with Chartered Accountants who could conduct tax audit if you want.

One is required to provide a trading statement from that broker account in addition to other documents usually required.

Hope this helps!

6

Hi @Quicko

  1. Thanks for the buisness code for filing ITR3 for indivual specualtors with out GST (but filing Equity /Commodity/Currency F&O transactions as a business)
  1. Understand qucko is only a software (portal ) to file taxes. But the person paying your prescribed charges “Upfront” - needs to know what the CA auditor you connect with may charge for Tax audit .
  1. It is not a question we “want” tax audit or not. It is a “must” while filing in this category (losses/ profit below 6% etc). There are practising auditors with a liecence every street corner. People come to filing portal for the ease of doing this sitting in front of the desk via computer not getting up from the chair.
  2. at the least you should take a survey with your panel of auditors & outline a minimum/maximum audit fees extra chargeable & parameters for such a tax audit fee structure.