How to Declare Loss in Trading, when Year End tax filing is done

POSTED BY Surabhi Rajan ON July 19, 2012 3:26 pm COMMENTS (2)

Dear JI Members,

I’m a salaried Individulal suffered a loss of 2.5L in Futures and Option Trading in the Finacial Year 2011-12. My Tax filing is due for 2012-13 assesment Year. How can I record/claim my loss for the financial year?

Do I have to get my account audited by CA person? Or the P/L statement generated by my Stock Broker (Edelwiess) would be enough tp claim the Losses.

Which ITR form I should be filing for this?

Thank You

2 replies on this article “How to Declare Loss in Trading, when Year End tax filing is done”

  1. Surabhi

    Loss from F&O has to be considered as normal Business loss and can be shown as the loss in your ITR . You need to fill ITR 4 and note that you can forward this loss for next 8 yrs ! .

    Btw, Just give a small pause in your F&O trading , I was once at your place . I will not say dont do it , but pause for a bit , and observe yourself and your overall plan . May be you can put a mail to me on this 🙂

    1. Thank You Manish,

      I have started F&O trading in June 2011 and made some 1.5L profit in 2-3 months with close to 1L capital. Later, in couple of months it self I blow the whole money and ended up loosing my whole 1L capital.

      I almost given up trading and out of market since then :D, back to investing in Mutual Funds via SIP.

      Thank you for helping with returns information.

      Regards, Surabhi

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