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Filing of itr

gupta (Accountant) (305 Points)

27 May 2016

Dear Sir, One of my friend has a quarry , pls give advice :- He is a salaried person. Besides his job he is doing day trading of Shares . He incurred loss . His total turn over is approx 30.00 Lacs( Pur+Sale) and his loss is near about 6000/-. Now his question is -- which no I-Tax return he will file i.e ITR1, / ITR-2 or ITR-4. What is suitable for him.Is it to show necessary as he is incurred loss and he is not willing to take any set off the loss with his salary & interest income.This is in the fin year 2015-16. Waiting for reply

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4 Replies

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 27 May 2016

he should file ITR 2

1 Like

CA Janani (ACA ACS DISA(ICAI)) (359 Points)
Replied 27 May 2016

ITR 2 is the right form if the asessee does the trading activity only once in a while.. Else, if it is his main business, ITR 4 is to be done

And moreover, he cannot set off these losses from the salary income... he can only carry forward

1 Like

Rahul Patidar (student) (70 Points)
Replied 27 May 2016

He should file ITR-2 and If loss is long term capital loss then we can not set-off it against any income and it can not be carry forwarded. If loss is short term capital loss then also we cannot set-off it against salary or Interest income but it can be carry forwarded.

So he should file ITR-2

and Should declare loss in ITR.

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K Srinivas, CMA CS (Founder Artha Consulting Services) (5181 Points)
Replied 29 May 2016

Itr 2 will be the appropriate.

Long term loss on sale of equity shares where securities transaction tax has been paid CANNOT be set off against any gains whatsoever. This is because long term capital gains from sale of equity shares where securities transaction tax has been paid is also Exempt

Short term loss is allowed to be set off against any short term or long term capital gain. Since he has no other capital gains, he may carry forward the capital loss to 8 assessment years. Hope this helps.

1 Like