F&O Loss
This query is : Open
25 July 2020
Hi
I have made F&O Loss for the Financial year 2019-20. I don't want to set off or carry forward the loss -
1. Do I still need to show the loss in income tax filling?
2. Since I don't want to set off or carry forward the loss for future do I have to still go through Audit process.
Appreciate experts help please.
I have made F&O Loss for the Financial year 2019-20. I don't want to set off or carry forward the loss -
1. Do I still need to show the loss in income tax filling?
2. Since I don't want to set off or carry forward the loss for future do I have to still go through Audit process.
Appreciate experts help please.
26 July 2020
Yes, Barren Doe In any case you have to report losses in your Return of Income otherwise you may receive notices from the Income Tax Department in the future for non-compliance.
And as far as the audit is concerned if your turnover is less than Rs. 2 crores, you are eligible to declare income on a presumptive basis. In that situation, you are not required to go through the Audit process.
And as far as the audit is concerned if your turnover is less than Rs. 2 crores, you are eligible to declare income on a presumptive basis. In that situation, you are not required to go through the Audit process.
26 July 2020
Thanks for your response
26 July 2020
You are most welcome Mr. Barren Doe
26 July 2020
Dear Barren
There is this notion among taxpayers to not report and carry forward a loss and not get an audit done. There is nothing wrong in Filing an audit report and carrying forward a loss as when government is a partner in profits then it's a partner in losses too.
Also, Sec 44AD has it's own issues like once you opt out, you cannot opt in for subsequent 5 years.
When you make profits in future from any business for the next 8 years,you will be able to set off these losses and not required to pay taxes to that extent.
Also, when you will no report your FNO transactions at all, it will again land you in notices from tax officials as correctly pointed out by Karan. And there can be bright chances of Penalty for not getting a tax Audit done which would be 0.1% of turnover of Rs.1,50,000 whichever is lower.
Regards
CA. Raj Doshi
raj@rcdco.in
www.rcdco.in
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
