Loss in speculation

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karthik (Querist)
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08 September 2011 i HAVE TRADED IN DERIVATIVE SEGMENT(FUTURE & OPTIONS) COMMODITY SEGMENT IN SHARE MARKET AND LOST ALMOST 8 LAKHS CAN I CLAIM THIS LOSS UNDER THE HEAD INCOME FROM BUSINESS OR PROFESSION IF SO CAN I FILE RETURNS UNDER ITR-IV FORM ....ALSO WILL THE TURNOVER PILED DUE TO TRADES CARRIED IN THE FUTURES AND OPTIONS SEGMENT ATTRACT THE SECTIONS OF 44AA/44AB MAINTENANCE OF BOOKS OF ACCOUNTS AND AUDIT

Aditya Maheshwari

Aditya Maheshwari (Expert)
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08 September 2011 It would be speculative business loss and will not set off against any other income except speculation profit only.

You will have to file ITR - 4 form only.

Turnover in case of F & O is sum of negative and positive differences and if the same exceeds Rs. 60 lakhs then you are liable for tax audit u/s 44AB.