Rs.26 Lakh Lost in F&O Trading by BTech Student with No Income

During the income tax returns (ITR) filing season, one Chartered Accountant has revealed how individuals have become addicted to trading, even when they are in the red. CA Roshan Agarwal from Assam mentioned a client, a 3rd year BTech student with no regular income source, who had filed a return showing trading activities.

Agarwal said he lost Rs. 20 lakh in trading last year. He informed the media houses that about two years ago, the student contacted him via Facebook on which Agarwal provided financial consultation for seeking assistance in filing his income tax returns.

The CA further told the media that “His parents are separated. His mother has a hotel business but nobody among them has knowledge for the same. He has no income and took personal loans from financial apps, borrowed money from friends, and withdrew some money from his parents’ account, unknowingly”.

The student has also been making financial decisions based on what he comes across in social media and from his friends, according to Agarwal. A friend of his traded in Future and Options and earned Rs. 1 crore in the last year. He was influenced by it. He was also moved from what he heard the financial Influencers say on social media.

Aggarwal stated further, “He had advised the student to quit searching for ways to earn money easily after the first year of this loss and although the student seemed to have agreed at the moment, this year is back filing his income tax returns with an even bigger loss.”