Taxation
For part-time traders/investors or full-time traders/investors

FAQ:

1. Can I reduce my tax by offsetting current profit in F&O by losses incurred in last financial year?

• Yes, if you have shown losses in ITR filling in previous years. So, always remember to file losses only then you can carry forward losses.

• Sometimes people file ITR late. You need to remember that F&O losses filed late cannot be carried forward.

2.  Does F&O trading comes under speculating income?

• No, as mentioned in above course, it comes under non-speculative income which can be considered as business income. Which means that unlike speculative income, expenditure can be subtracted from profit.

3. Do I need to do audit if I do F&O trading?

• No, if your turnover is below the prescribed limit (which 10 crore as per new rule 2021, previously it was 1 crore)(For more detail read course, we have given an example in above taxation lectures slides)

• Yes, if the above limit exceed or profit is less than 8%(or 6% if all trades are digital) of the turnover. This means that you have to file audit if yo want to carry forward losses.

4. I cannot deduct incidental business expenses from profit of F&O?

• No, you can deduct whatever expenses related to business. It is allowed. Example: broadband fees, car expenses(driver/petrol) related to business activity.