F&O Loss Not Accepted in 143(1)

Hi, 

I had incurred a loss in F&O trading last year and had filed for the same in my AY 2020-2021 ITR under the no accounts case. 

However, in the 143(1) that I received, the loss got accepted in the "Gross Profit" section but it shows 0 in "Net Profit". So, essentially, my entire loss isn't accepted. 

What could be the reason for this? And how can I change this?

Any help would be much appreciated.

Replies (6)
Quick Summary
A user experienced their F&O loss being partially accepted under the 'Gross Profit' but not 'Net Profit' in their 143(1) intimation for AY 2020-21. The advice given was that losses for set-off require detailed accounts, and a 'no accounts' case won't suffice. Since a revised return is time-barred, the recommended course of action is to file a rectification under Section 154 of the IT Act to correct the discrepancy.

FOR SET OFF  & OR CARRY FORWARD OF LOSSES, YOU NEED TO FILE COMPLETE DETAILS WITH BOOKS OF ACCOUNT MAINTAINED.

SYSTEM WOULD NOT ACCEPT LOSS TO SET OFF 'UNDER NO ACCOUNT CASE'.

Okay, so if I file it now under the complete book of accounts case, would I be liable for an audit too as it's a loss? 

1. REVISED RETURN FOR AY 2020-21 CANNOT BE FILED NOW, ITS TIME BARRED.

2. TAX AUDIT IS NOT APPLICABLE BECAUSE OF LOSS INCURRED, BUT IT GETS  APPLICABLE BASED ON TURNOVER, IF EXCEEDED Rs. 1 CR.

Oh, okay. My turnover is way less than 1 CR so tax audit isn't needed. But if I can't file a revised return, what would be my best course of action now? Pay the additional tax?

FILE RECTIFICATION U/S. 154 OF IT ACT WITH THE CHANGES, CHECK IF THAT IS ACCEPTED. OTHERWISE NO ALTERNATIVE.

Okay, thank you so much. I'll try the same. 

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