Clubbing of Income with loss in F&O trading

Income Tax Income from Business or Profession
1

Hi Sir, Last financial year I traded in F&O with my money in both my and my wife’s account. She was financially dependent, hence has never filed ITR. The total F&O turn over of both the accounts was 1.18 crore and the net loss was 10 lakh. I have never used section 44AD and Presumptive taxation. Also due to this loss in F&O my net income for the fiscal year was below exemption limit of 2.5 lakh. Please clarify following doubts.

  1. Do I need to get audited as I am to show F&O loss of 10 lakh in F&O in ITR3?
  2. I believe I shall have to fill Schedule SPI where I shall be putting my wife’s PAN number. In the amount section do I put only the loss incurred from her trading account (which was 25 lakh) and under head of the income do I put Business/ Profession?
  3. Where do I put turn over of her trading account, do I add that to my turn over as I do not see any place to put turn over in Schedule SPI?
  4. During ITR filing, in Part A- Balance Sheet, under Sources of Fund- Proprietor’s capital, do I put after adding bank balance of mine as well as my wife’s on the day of 31/03/2025? If yes, what about the cash in the trading accounts of both our accounts, should I not add them as well?
2

Hi @Ajay_Mohanta

As you are trading from your wife’s PAN, you need to file both the returns seperately and turnover to be shown in the separate return.

Regards,
CA Raman
9999616874

3

Thank you Sir for replying.
In my ITR, I shall be using clubbing provision and in Schedule SPI will show my wife’s loss of 25 lakh in the Amount head with Head of Income as Business/Profession.
So while filing ITR for my wife’s PAN, I shall show her turn over, but do I show “0” income as the income would be already clubbed in my ITR?