Question for itr3

Income Tax
#1

Please clarify=

I want to file it3 to report loss in FNO trading of 60k [business income],to carry forward the loss. I have no salary income, i did trading from my saved money of old years. my total income is below 2.5lac.
Please answer following point=
I have received 35k Rs from my cousin brother as gift, [which is below 50k], do i have to report this income in exempt income under itr3?
will showing this income will reduce Loss by 35k, so then i can only carry forward loss of [60-35]=25k? or can carry full loss 60k?
Thanks

#2

Hi @raj50098

About your questions, here are the answers:

  1. Gifts received below 50,000 are exempt from relatives (as per the Income Tax Act) and non-relatives.
    One should report this gift under exempt income under the “income from other sources” head while filing an ITR.
  2. This is an exempt income, and hence cannot be used to set off or carry forward losses. FnO is considered a non-speculative business income. In the current year, it can be set off against any income except salary income. In future years, it can be set off against business income (both speculative and non-speculative). The trader can carry forward the loss for 8 years.

Read more about Set Off and Carry Forward of Losses under Income Tax - Learn by Quicko

Hope this helps!

#3

Thanks for clarifying.
Please clarify=
If i have 3 bank accounts, but only 1 bank account is connected with the broker, i have no salary only trading as business. So in filing itr3 only closing balance of 1 bank account should be shown or all 3 bank accounts?
Thanks

#4

Hi @raj50098

It is advisable to disclose all the bank accounts in your Income Tax Return.

#5

Thanks for reply,
Please clarify=
For filing itr3 for sharetrading business and having no other income, do a trader have to disclose personal amount kept in Fds in itr3?
Thanks

#6

Hi @raj50098

An individual is required to report all his bank accounts and hence any interest earned from bank FDs or deposits in any return (ITR 1, ITR 2 ITR3, etc) he is required to file.