Tax audit - f&o trading + salary + cap gains + ot

This query is : Open

Ram (Querist)
Follow

17 August 2013 Hi, I have the following income for the FY 2012-13.
Loss on F&o: Rs 15,000/- (turnover Rs 1,00,000/-)
Salary: Rs 5,00,000/-
Capital Gains: Rs 15,000/-
Interest: Rs 10,000/-
Dividend: Rs 5,000/-
Is tax audit compulsory in my case?
Can i show Rs 8000/- profit on F&O to avoid tax audit?
How to fill ITR IV in such a case as ITR IVS doesnot accomodate capital gains

Regards

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

18 August 2013 ITR 4 does have CS & OS page and you can fill up that page for capital gains.

As regards showing profit on F & O whether it is short term or long term. It is to be shown as capital gain or if you are doing on regular basis for less than 30 days then yes it is a business income but generally in F & O you do not take deliver of scripts and therefore the department is taking the view as speculation loss and the same can be adjusted only against profit and in that case no Tax Audit is required and you need show 8% profit.

Message likes : 1 times

Ram

Ram (Querist)
Follow

19 August 2013 Thank you Agarwal sir,

1) I am doing regular trading in FnO and hence would like to categorise it as business income.

2) I read somewhere on this site that, FnO trading on NSE is not "speculative".

3) If i have to show profit of 8% even if i have loss just to avoid the headache of maintaining of books and tax audit, i have to fill ITR 4s.

4) But since i have Capital gains also, is it okay if i fill ITR 4 and show 8% as profit.

Upgrade to CAclubindia Pro. Subscribe Now!