ITR Queries for Salary Income and Derivatives trading losses

2350 views 3 replies

 

Hi,

 

I need some help with filing tax returns for financial year Apr 2010 to Mar 2011.

I am a salaried person with salary income more than 10 Lacs. Got my form 16 from employer recently.

I also have losses in options trading (derivatives) in this financial year. I know that options trading is business income and losses incurred in that CANNOT be adjusted with salary income. However, these losses can be carried forward for a certain period of time, but it needs to be declared while filing the returns.

Will appreciate if the experts can respond to the following:

 

1) Which return form should I use to file my returns so that I can declare income from salary and also declare the options trading losses to be carried forwarded

 

2)I want to file the returns online. Of the returns form to be used (as per question 1), which section should I fill in the losses?



3) For how many years can I carry forward the options trading losses?



4) Can the income earned from savings accounts/fixed deposits interest be adjusted against the options trading losses?

 

Please let me know. 

 

Thanks

Replies (3)

Just to update the above query: The online forms to be used are available on incometaxindia site:  at https://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/ay2011-12/itr62Form1-9(New2011-12)_2.htm

you need to file ITR-4 as you have business income with salary otherwise ITR-1

for download the same, you can use below mentioned URL:

https://incometaxindiaefiling.gov.in/portal/downloads.do

Hi Harpreet,

Thanks for the prompt response.

Just wondering why can't I use ITR-2 form? (https://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay2011-12/ITR-2.doc)

 

That also has a section "Losses of current year to be carried forward" in Part A no. 14.

and a CFL section called "Schedule CFL"

Let me know what do you think

 

Also, the losses in derivatives trading will be Short term losses, I suppose?

Thanks

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