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How to show speculation loss in itr?

24 July 2019

Mr.X does intra-day trading in different shares.

He has Sale Consideration/Sell Amount of Rs.1,00,000/- and Acquisition Amount of Rs.1,03,000/- Therefore, he has speculation loss of Rs.3000.

Now in ITR I have shown net profit as -3000 in speculation business. As I no books maintained it is asking to state turnover and gross profit,so I have shown turnover as 3000 and gross profit as -3000. But it is showing error that profit is less than 8%, it liable to get audited under section 44AB.

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3 Replies

rama krishnan (12239 Points)
Replied 24 July 2019

just show rs. 6000 (6% of 100000) as income from speculative business

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ACA Sarita Laddha (Practicing CA) (1225 Points)
Replied 25 July 2019

in turnover you have to show 100000 & loss is 3000 as the profit is less than 8% or 6% you have to get your account audited it will be a cumbersome
so as per my view as the loss is of small amount it's better not to show in itr

Nithin (Article Assistant) (36 Points)
Replied 09 September 2019

Mr. Rama Krishnan and ACA Sarita Laddha madam as of I know turnover isn't 100000. please read below.
Speculative transactions (intraday equity trading)

For all speculative transactions, aggregate or absolute sum of both positive and negative differences from trades is to be considered as a turnover. So if you buy 100 share of Reliance at 800 in the morning and sell at 820 by afternoon, you make a profit or positive difference of Rs 2000, this Rs.2000 can be considered as turnover for this trade.