Showing trading losses in itr

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anant (Querist)
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24 December 2013 Respected Sir,
My query is if assessee has a trading loss then how should it be entered in the books? Is it required to enter each and every transaction and the resultant loss/profits in the books if the transactions are huge? Is it possible simply to debit the loss amount (on the basis of calculations/profit and loss statement) from the bank/cash balance narrating it as loss from speculative trading and loss from non speculative trading? I am asking because the set off of both types of losses is done against specified profits/income only.
My second question is - If the assessee shows big non-speculative trading losses and set off against his income is it a sure shot recepie for scrutiny?
Thanks!

Guest

Guest (Expert)

25 December 2013 Dear you can just simply show the trading loss on debit site of your profit & loss account bifurcating it a speculative and non speculative.But you have some reasonable basis to calculate such loss and need to keep the supporting documents to prove that loss if need be.
No, showing a big non-speculative trading losses doesn't lead a case to a scrutiny provided it is a genuine loss.