Salaried person- how to deal f&o losses

This query is : Open

Amit Arora (Querist)
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18 August 2015 While filing I have the following heads of income -
1. Salary = Approx Rs. 6.00 Lac (I have a TDS certificate).
2. Savings bank account interest = Rs. 20,000
3. Capital gains from shares held for less than 1 year = Rs. 5,000
4. F&O losses. (Total Turnover = 4.17 Lac and Loss = 1.31Lac)

Queries
1. Which IT return forms do I have to fill?
ITR 4 or ITR 4S?
Or in case I don’t want to carry forward F&O Losses, can I use Form ITR 2 as well?
2. In case ITR 4 to be used, what information to be put in return since I am a salaried person and not a business man.
3. Do I need to maintain any books? if yes what kind of books.
4. Do I need to get my books tax audited?

Thanks in anticipation.
Amit Arora

Amol S Joglekar

Amol S Joglekar (Expert)
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18 August 2015 1. File ITR 2. FNO is not your business activity, so dont use ITR 4
2. N.A.
3. No. You dont need to maintain thebooks of accounts as such. Keep the trail of RECORD of all FNO transactions. (In fact your ledger as maintained by your BROKER is sufficient)
4. Audit not required.

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Amit Arora

Amit Arora (Querist)
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18 August 2015 Thanks for your reply Mr Amol.

What I understand after getting some information on internet, Trading in F&O is considered as a business and hence have to use ITR4 compulsorily.
Are you 100 % confident that I have to file ITR 2 and not ITR 4.
Regards,
Amit Arora

Message likes : 1 times

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