12 June 2023
This year I have made around 1.8k short term gains and one intraday trade with a loss of Rs 7.95.Suppose this year I file ITR-3 with the intraday loss under Business Income head and Short Term gains under Capital gains head. Since I have intraday loss, I might have to do audit as well. But now suppose in the next year, I dont do any Intraday transaction and stick to short term/ long term gains, then I dont have any business income since I wont have any intraday trading and I will be reporting short term/ long term gains under Capital gains head.Then can I file ITR 2 in the next year since I wont have business income?Or will I have to stick to ITR 3?Basically what do I need to do now so that I can shift to ITR 2 in future?
12 June 2023
1. No need to stick to ITR3 (or even ITR4), if you do not have any income u/h. PGBP (in your case intraday) 2. You can easily select ITR 2 for all the incomes declaration, except income u/h. PGBP.; without any hassle.
12 June 2023
Thank you. The only doubt I have is since this year I will be filing ITR 3 and declaring my intraday loss, it will get carried over to the next year. Then if I file ITR 2 next year, how will this carried over loss be reflected in it?
12 June 2023
It will not reflect in next year's ITR2 (if no business income), but whenever you have business profit and have to adjust the loss (within next 4 years), you can file ITR 3 and claim the loss with the details of ITR filed relevant to the said year.
12 June 2023
Thanks again. So if I continue filing ITR 2 in subsequent years, that loss will not get adjusted. What will happen if even after 4 years the loss doesnt get adjusted considering the fact that I wont be earning any business income so I will be filing ITR 2 from next year onwards?
12 June 2023
1. Intraday losses/ Speculative Loss can be carried forward for 4 years. It can be set-off against Speculative Business Income only. 2. If you cannot adjust the loss against any speculative gains within next 4 years, it will lapse.
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