Dear Mihir I incurred short term losses of 2L Rs in foreign shares in AY22-23 but forgot to add that in CG. I had filed my returns on time. Can i file a rectified ITR now? (I have also already filled my returns for AY23-24 as well).

Ans: You can file a revised return only to remove the omission and mistake and/or correct the arithmetical error.It cannot be filed for altogether a new claim.

Thus, matter of new claim in revised return can be subject to litigation.

If you file revise return to claim brought forward loss of earlier years against capital gain of AY 2022-23 and if income tax department observes that it is new claim, your claim might be denied as same was not claimed in original return. However, it can be argued that revised return is filed to remove mistake of not claiming brought forward losses. 

Ans: Transfer of capital asset being shares is taxable in the year in which shares are transferred from D-Mat.

Thus, if shares transferred in FY 20-21, it can not be shown in FY 21-22.

Further, loss from intraday is chargeable under the head speculative business and it can not be set off against salary income.

Ans: No,

If loss is not shown in ITR of relevant year and not carried forward to future years, loss can not be set off against eligible income of current year.

Ans: Good Afternoon Aejaz,

I understand your concern about the notice you've received regarding a defect in your Income Tax Return for AY 2023-2024. As an NRI working in Saudi Arabia, it's crucial to ensure your tax filings are accurate.

The notice you received typically means that there might be some discrepancies or missing information in the return you've filed. This could be due to a variety of reasons such as incorrect reporting of income, deductions, tax credits, etc.

Here are a few general steps you can take:

1. Review the Notice: The Income Tax Department usually provides a reason for the defect in the notice itself. Review it carefully to understand what the issue might be.

2. Check Your ITR Form: Go through the ITR form you've filled out. Make sure all the information is accurate and complete. Pay special attention to the sections related to foreign income, as this is a common area where mistakes can occur for NRIs.

3. Rectify the Defect: Once you've identified the issue, you can rectify it by logging into the e-filing portal. You'll need to revise your return with the correct information and submit it again.

Please note that this is general advice and the exact steps might vary depending on the specifics of your case. If you're finding it difficult to rectify the defect yourself, it might be beneficial to seek professional help. As a tax professional, I can certainly assist you with this on a chargeable basis.

Remember, the deadline for rectifying the defect is August 3, 2023. It's important to act promptly to avoid any further complications.

I hope this helps! If you need further assistance, feel free to reach out.

Ans: Hello Purnima,

I understand your concern about the unreported short-term losses from foreign share trading for the Assessment Year (AY) 22-23. It's crucial to correct this oversight as it has a significant tax impact.

You can rectify this by filing a revised return for AY22-23. The Income Tax Act allows taxpayers to revise their return if they discover any omission or any wrong statement therein. However, please note that the revised return can only be filed if the original return was filed within the due date.

Also, remember that you can carry forward these losses to offset against future gains only if the original return was filed on time. So, if you had filed your original return for AY22-23 within the due date, you can carry forward the losses.

Please consult with a tax professional or chartered accountant to ensure that the revised return is filed correctly. This is a general advice and for a more detailed procedure, you may want to consult with a tax professional.

I hope this information is helpful.