Comment on Zerodha - your tax aide while you trade

jay commented on 05 Sep 2015, 12:27 AM

sir
I am totally nervous as to tax return notices etc. and not many CAs are well aware of the tax rules in case of F&A trades, as none of them is very clear even about turnover aspect in F&O, your blog has been a big help. I have a few queries which average CAs are not able to satisfactorily answer and get conflicting views. Sir, I have been trading in F&O and short term deliveries since years, say 2006-2007. In so many years I usually made losses and my total income from any other source was never above 1 lac. As i never thought I had taxable income, so I did not file returns ever. Was it necessary on my part to file returns whereas I never had taxable income all these years ? and If i have not done than what should I expect from I.T. deptt and in such case when there is no taxable income from all sources together and in F&O too I have made loss only, was i liable for tax-audit all these years ?

2nd, in another account I actively traded and made a loss of 3.5 lac in F&O and short term capital loss in fin year 2013-14 and I filed the return with losses but the person who filed my ITR, wrongly used ITR2 showing all losses and short term capital loss whereas mostly had been in F&O whereas, as is clear from your blog, it must have been ITR4, I filed the ITR on 31.7.2014. He told me that my loss will be carried over to next year. Next fin year 2014-15 I made about a profit of 17 lac from F&O trade and in delivery based also made some profit but through bonus adjustments of Infosys and Hcl tech I managed to show loss of about 7 lac as STCL. My quiery is, can this STCL be negated from my F&O profit ? 2nd, can my carried forward loss of 3.5 lac filed through ITR2 be negated from my this year F&O profit ? 3rd, If i hold my Infosys bonus shares for one year, will that be exempted from income tax as LTCG ?
It has been too exhustive, hope i get the answers.

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