I am salaried person under 30 percent slab. For last 3 months, I am doing Options trading. Though I am still in losses.
Please tell me what is rule of ITR and taxes.
Your salary will be taxed at the applicable income tax slab rate and should be reported under the head ‘Income from Salary’.
F&O is treated as a non-speculative business activity and will be reported under the head ‘Income from Business/Profession’.
Under the old tax regime, you can carry forward the F&O losses to the next 8 years and set off against future gains.
Sir I have no earnings as I’m unemployed so that’s why I haven’t file any income tax return yet, but i have some amount like 80k or 1 lac in my trading account by which I usually do intraday trade…by this trade practice if I earn less or more than 1 lac in single financial year…is there any need to file income tax return…and what about trade turnover more than 10 crore through intraday, need compulsory tax audit…?
Hey @VISHNU_SHARMA, yes, if turnover exceeds 10 Cr in a financial year, irrespective of profit/loss, it is advisable to file ITR and also have your books of accounts audited by a CA in practice. Trading in Intraday is termed as speculative business income and thus it will be reported as business income and have to file ITR 3.