Taxation Query <Carry forward loss>

Taxation
1

Hi All,

For year 2019-20 below is my position summary w.r.t Taxation

  • Intraday loss - V small amount (just one trade)
  • Short term profit - Small amount
  • Long term loss - Big amount; Should be carried forward
  • F&O - Small profit (below 10L turnover)

I am certain I dont need Audit but do I need to file ITR 3 ? but from this year I have been very active in derivatives and would be filling as speculative business income (or this year activity has no impact ?)

Also, Which plan of @Quicko would suit me?

And, folks who have tried quicko, How is the experience? I felt the charges are a little high.

2

@2percent_trader

For year 2019-20 below is my position summary w.r.t Taxation

  • Intraday loss - V small amount (just one trade)
  • Short term profit - Small amount
  • Long term loss - Big amount; Should be carried forward
  • F&O - Small profit (below 10L turnover)

I am certain I don’t need Audit but do I need to file ITR 3 ? Yes you need to file ITR-3.

but from this year I have been very active in derivatives and would be filling as speculative business income (or this year activity has no impact ?) - this year (FY 2020-21) activity has no impact on FY 2019-20 filing.
Also note trading in derivatives is Non Speculative Business Income.

3

Hi @2percent_trader,

Since your have business income from trading you need to file ITR 3.
As per the Income Tax Act, Intraday trading is treated as a speculative business activity, hence intraday loss can be carried forward for 4 years. F&O trading is treated as non-speculative business activity and non-speculative business loss can be carried forward for 8 years.
You should report your loss in the ITR to carry it forward.
Read more:

We have special discounts for Zerodha Trades, we make sure what you pay is worth it and your time :slight_smile:

4

Hi @Quicko,

Which plan would you recommend for me ?

5

@2percent_trader, If you could drop your contact number and email id on the message here on tradingqna, one of our team member’s will get in touch with you and recommend the suitable plan.
Or you can DIY file your ITR yourself by importing your trades on Quicko
You can check out the webinar we did with Zerodha for the whole process :slight_smile: