Income tax head

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VINAYAK (Querist)
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20 June 2015 profit / loss derived from derivatives in stock market, where to show in Income Tax Return? whether Tax Audit is applicable If yes, How Turnover will be calculated? In case If loss is there, whether it is considered as speculative loss? Whether it is allowed to carry forward.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 June 2015 derivative loss is not speculative. It can be carried forward if you file the return in time.

It is shown in ITR-4 as business income in the profit & Loss account.

Turnover is calculated as sum of absolute value of all the positive and negatives result of each derivative trade.