Hi my client is trading in futures and options, he incurred loss of Rs. 1,46,000. How to file loss of FO in itr? Whether tax audit is compulsory or i can treat it as short term Capital Gain? Please help. He doesnt have any other income.
4 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183191 Points)
Replied 21 June 2018
It is treated as 'PGBP' income.....
File ITR 3, and after adjustment with other income carry forward loss.
In no other income, tax audit not applicable; unless sec 44AD was opted in preceeding year. But filing P&L acc & BS details, mandatory.
Shrividhya
(CA Final Student)
(74 Points)
Replied 21 June 2018
Thank you sir. So we cant treat it as Capital gain right?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183191 Points)
Replied 21 June 2018
Correct...... Its not investment, but trading in future & options........
CA S Praveen Kumar Reddy
(Chartered Accountant)
(2195 Points)
Replied 21 June 2018
U can treat either CG OR PGBP, once opted u can't change in life time
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