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How to Show Future and Options (F&O) Loss in ITR

 

How to Show Future and Options (F&O) Loss in ITR

Today in this article we are discussing How to Show Future and Option (F&O) Loss in ITR. So Before Showing the Losses in the ITR we have to know about which type of the ITR is required to Show the F&O Losses.

Type of the ITR Form Required to Show F&O Loss –

ITR – 1 Form
In this ITR-1 its not possible to Showing the Losses as ITR-1 is only required when you have Salary Income with the House Property & Other Source Income. Apart from these source of income there is no column for the F&O Losses.

ITR – 2 Form
In this ITR-2 Form there is capital gain schedule but Future and Options Losses are treat as Business Losses so ITR-2 Form is also not enough for showing the Future and Option Losses.

ITR -3  Form
In this ITR-3 is the perfect to show your all F&O and Intraday Losses for the trading. ITR-3 have a separate column for Business Income & Losses where you can show books of Accounts of your Trading Account or can show on presumptive basis.

In the ITR-3 Form if you choose Maintain of the Books of the Accounts then its required the Tax Audit to show the Future and Options Losses because ITR-3 is not allow to show less than 8% Profit of the Turnover without Audit in F&O Case.

How to Show F&O Loss in ITR -3

So for example if your F&O Losses of 2 lakh rupees on the turnover of 1 Cr then you need a Tax Audit from CA & can easily show F&O Losses in the ITR-3 to carry forward the losses for next year. Below is the Good Video to explain further How you can Show F&O Losses in ITR-3 

Benefits of Showing F&O Losses in ITR -3

a) you can carry forward the F&O Losses for the upcoming year so whenever you have Profit then you can easily set off against the Losses and Save the taxes on Future & Options.

b) you can carry forward the F&O Losses for the next 8 Year easily but remember you need to file ITR-3 Every year to carry forward the losses.

How to Show F&O Profit in the ITR -3

For the F&O Profit you can easily choose Presumptive basis Income in the ITR-3 and show the Turnover of the F&O and more than 8% Profit on the same without maintaining Books of Accounts.

How to Show F&O Losses in ITR -4

In the ITR -4 You can show only the F&O Profit because ITR is not accepted Losses or Minus Sign when you show the Turnover and Profit or Losses on the same. So if you have Future and Option Losses then its Required to file only the ITR- 3.

So Hope now your all Doubts are cleared on How to Show F&O Losses in the ITR-3 or ITR-4 for the same. if you are looking for Tax Expert then Consult with Us today for F&O ITR Filing.

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