Tax Audit requirements for derivatives (Options)

Taxation
1

Hi,

Now that we have the tax filing deadline I had few questions/doubts after going through multiple sources of information (including varsity).

I am a private salaried individual and I come under 30% slab. But since the last almost three years I have been trading in Options with zerodha. And net-net for this financial year individually and the previous financial years individually I have been on a loss 7 lac + cumulatively summed up :frowning:

Now my questions here are as follows:

-> As I am making a loss on Derivatives which is less than 8% of the turnover, do I need an audit from CA for this FY?

-> And I have never filed losses from the previous years as well (my bad). Now I want to file the losses from the previous financial years as well so that I can use it as set-off against any profit in the future for the coming 8 years. Can I do that?

-> Another question which is a bit different from the above ones is that when I was going through q.zerodha.com -> Tax P&L report, I saw that on the page (script wise) it is showing me a turnover of around 20lacs and the respective loss in the F&O segment which is correct. But when I downloaded the excel report (tradewise), it does show me the trades but it shows the summed up turnover as zero “0”. Any thoughts on that as its puzzling me a bit?

Many thanks in advance for looking into my queries :slight_smile:

Thanks,
Jay.

2

As I am making a loss on Derivatives which is less than 8% of the turnover, do I need an audit from CA for this FY? :- Yes you need to file the Return with Audit.

And I have never filed losses from the previous years as well (my bad). Now I want to file the losses from the previous financial years as well so that I can use it as set-off against any profit in the future for the coming 8 years. Can I do that? No. to carry over the losses, you need to file within Due date of filing the returns.