How to show net loss from f& o trading loss in p & l in itr4

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2014 Dear Expert,

My client is trading in F&O( Future & Options) , and eligible for tax audit in FY 13-14.

Since, his net loss in F &O is 36 lacs.

Pls guilde me how to show net loss figure in P & L a/c in ITR4.

Please reply

Thanks

Amol S Joglekar

Amol S Joglekar (Expert)
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12 November 2014 01. Why do you think he is eligible for TAX AUDIT.
02. One view, and popular one, is that it should be shown under speculation LOSS.

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2014 Dear Sir,

Reply,
01- aggregate turnover from F& O trading was (loss 1.08 crores + profit 72 lacs)= Net Loss 36lacs.

02.- According to me, Trading F & O is not speculation loss or profit. Its treated as Business .

My question is that , how to show these figures in p & l A/c. as we can't put net loss figures directly in p& l a/c.

Pls. reply

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 November 2014 the profit part will be shown as net gross receipts. the loss part will be shown as expense. The net effect will reflect as the net loss from business.

Amol - F&O transactions are not accounted for as speculative transactions. refer proviso to section 43(5).