Reporting F&O loss as 6% profit in ITR

Hello Sir,

I have loss of 1.5 Lakh from F&O in fy 2019-2020 whereas my option turnover is 5 lakh. As far as I understood, I have to get audit done for reporting loss. Can I report profit of 6% as I do not want to carry forward my loss to next financial year. Please advise if this is possible.



Hey Deep,
Yes. You can report profit at atleast 6% of turnover by opting for Presumptive Taxation under Section 44AD. However, you will not be able to carry forward the loss. Further, if you opt out of Presumptive Taxation before expiry of next 5 years, you will not be able to opt for it again for 5 years from which you file a regular return.

One of our tax experts would love to connect with you on call if you can drop in your contact details at [email protected]

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HI Deepkaira,

Suggest you to go through the video, it explains all of your query

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We can use 44ad Lifetime right ?

If suppose you opt for 44AD then you need to follow the same scheme for the next 5 years. If you failed to do so, then you will not be available to use the scheme for next 5 years, for more information you can check the link

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@Quicko Thanks a lot for your advise. I have one more question. I have short term gain from equity stocks of 50K , from 10 transactions. Can I show them as gains from trading business . This is the first time, I have to report Short term capital gain and based on information available, we can opt this approach to show trading as business .

Please advise

Hi Deep,
The taxpayer has an option to report trading in equity delivery as either capital gains (if the intention is to invest) or as business income (if the intention is to trade). Thus, you can report such trading as business income. However, this treatment should remain consistent each year.
Read more about How to treat sale of shares as Capital Gains or Business Income.

Yes bt if i continue for 5 year what will happen in 6th year ?