Stock market income

Dear Sir,

You need to file ITR-2 and not ITR-3 as it is capital gain income and not business income.

Thanks

Dear Sir,

Hope you are doing well !

It is not covered under business income. The same will be treated as capital gain

You are required to file return of income in ITR-2 . You will be required to prepare your return of income offline using ITR-2 utility (Java Excel) available on the e Filing portal of the income-tax department; generate xml file and upload the same. Only the ITR 1 and 4 can be prepared and submitted online.

Thanks & Regards,

Payal Chhajed

Income from trading in Intra Day and F&O is considered as 'Income from Profession or Business' and hence ITR 3 will have to be filed.

Since you only have done delivery-based trading and through mutual funds, the income from them will be considered as 'Capital Gains' and not 'Income from Profession or Business'.

Hence you shall need to file ITR 2 and not ITR 3.

Hope I've clarified your query. Do let me know in case you need any further clarifications.

You will need to file ITR2 and not ITR 3 .

Regards,

Nikhil.

Dear Sir,

If it is delivery based trading then it should be treated as capital gain only and not business income therefore you need to file ITR-2 for it and not ITR-3.

Thanks

Hi,

Whatever the level of trading, it is not considered as a business income, you will have to file ITR 2.

Thanks & Regards,

Payal Chhajed

What is the average holding period of the stocks sold during 2017-18 Financial Year?

Hi

Yes, it can be declared as business income. It's at your option to consider it as capital gain or business income. However, you should be consistent in the coming years with such approach that you select.

The code shall be 09028.

You may opt for 44AD whereby your profits shall be presumed to be 6% of the gross receipts I.e. 32 lacs.

Hi,

Firstly please note that you have an option to choose between business income and capital gain.

If you choose to opt it as business income in the current year, you will have to stick to it for all the future years unless facts get changed.

Further, if you are opting for section 44AD in the current year, you will have to do this continuously for 5 years and even if you have losses in next year, you will have to show profit of 6% except in the case where you choose to go for audit.

Further, nature of business code is 09028

Hi,

You have an option of disclosing it as business income.

The code shall be 09028.

Hope that clarifies,

Regards,

Nikhil.

Hi

It can be declared as business income .Code can be 09028.

Hi

There is no point of harassment until you are clear about your views. It all depends on your intent of purchasing stock. Even an assessee is allowed to manage 2 portfolios at the same time - business and investment portfolios whereby income from business portfolio is taxed as business income and income from investment portfolio is taxable as capital gains. Further, since you don't have any other income, it becomes more easy to prove such trading as a business.

Dear Sir,

- If you will avail the option 44AD in ITR-3 then you have to file comply with the section 44AD for next five years also otherwise you need to maintain books of accounts and get them audited.

- You can treat them as business income as you don't have any other income which can be presumed that it is the only business income you have but you need to declare profit equal to or more than 6%/8% and prepare balance sheet for such business.

- Under ITR-2 you need to show capital gain of only 4 lacs.

Thanks

I would suggest you to read the following CBDT circular:

https://www.incometaxindia.gov.in/communications/circular/circular-no-6.pdf

I dont see any reason for harassment by 24thyhe department. Till the time you are complying with the law , therecwill be no issues.

Could you let me know what the average holding period is for your shares?

As you are not having any other income it is better you disclose your income from shares transactions as business income.

If there is no business income & no intra day and F&O activities then you can file ITR 2 turnover without worry