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Hardik Parikh |106 Answers |Ask -Follow
Tax, Mutual Fund Expert - Answered on Jul 26, 2023
Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more
Question by Kamlesh on Jul 25, 2023Hindi
I have incurred a loss of around 7 lakhs in FnO Trading with the overall Turnover of 68 lacs......I am allowed to carryforward my Loss for next year...whether I need to submit any other document as proof of my loss....I made all transactions in Digital mode only. Thanks..
Ans: Hello Kamlesh,
Firstly, I would like to assure you that your loss in Futures and Options (F&O) trading can indeed be carried forward to the next financial year. As per the Income Tax Act, you can carry forward this loss for a period of 8 years.
Now, coming to your query about the documentation, since all your transactions were carried out digitally, you don't need to submit any additional physical documents as proof of your loss. However, it is crucial to report these losses in your Income Tax Return (ITR).
You should report this loss in ITR-3 as it is considered a business loss. While filling out the ITR, you need to provide details of your F&O transactions, including the sale value and purchase value.
Remember, even though the loss is not taxable, it is essential to mention it in your return. This allows you to claim a set-off against any future profits from your F&O trading.
I hope this answers your question. If you have any more doubts, feel free to ask.
Best Regards.
Firstly, I would like to assure you that your loss in Futures and Options (F&O) trading can indeed be carried forward to the next financial year. As per the Income Tax Act, you can carry forward this loss for a period of 8 years.
Now, coming to your query about the documentation, since all your transactions were carried out digitally, you don't need to submit any additional physical documents as proof of your loss. However, it is crucial to report these losses in your Income Tax Return (ITR).
You should report this loss in ITR-3 as it is considered a business loss. While filling out the ITR, you need to provide details of your F&O transactions, including the sale value and purchase value.
Remember, even though the loss is not taxable, it is essential to mention it in your return. This allows you to claim a set-off against any future profits from your F&O trading.
I hope this answers your question. If you have any more doubts, feel free to ask.
Best Regards.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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