The rule position is:

You should have filed the Returns in the two years when you made the loss, 
irrespective of whether you paid tax or had zero or negative tax.

The tax returns must have been filed in time, i.e. before 31 Jul of the 
respective assessment year. Late filing of IT returns does not entitle you to 
set off that years loss in the subsequent years.

You should have declared the loss then. The loss should have been worked out 
and the statement and contract notes attached along with the returns then. 
Those were the years when attachments were mandatory in the IT Returns.

If you have done all the above, the loss would have been deemed to have been 
declared. Only then would you be permitted set off from the current period 
profits.

Vyas

On Wed, 01 Sep 2010 23:33:45 +0530  wrote
>If you are showing the loss in F&O trading in ITR from last 2 years, you can 
>adjust your previous year losses with current year profit, otherwise 
>you cannot adjust and need to pay the taxes as per applicable income tax 
>slabs, showing the profit as Income from business/profession.

 
Regards,
Santosh


On Mon, Aug 30, 2010 at 7:54 PM, seenuvasarao inti  wrote:

Hello Guys...

I have been doing trading in futures and options since 2007.
I have lost around 7 lakhs in 2008 and 2009 years together. I have recovered my 
lost money in the last and current year.


Now do i need to pay any tax on profit???
Can any one help in explaining the tax rates on futures and options?
..heard that intraday trading means, its the kind of business. so we have to 
pay the tax as per the slabs.

..and also heard that, the lost money can be recovered in the next 7 years. is 
it true???

Plz explain if any one knows..

and also, i am the employee of software org. hence i fall under the catagiry of 
20% slab rate with my income.




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