How to declare tax for my salary and buisiness

Hi,

- I think it is your capital gain because you mentioned it is non- speculative. Can you please share more details of trading?. I am assuming it as delivery based trading.

So first of all is your company filing your income tax return or are they only deducting your TDS. From what you are saying I only understand that they take your all income information and they might be using it to deduct TDS, I don't think they would be filing your income tax return because that's a personal thing and one need to register on income tax website to file income tax return, so just check whether they are filing income tax return on your behalf or not and they might not be asking for business income because generally no one thinks that a person doing job can also do business but they don't take into consideration that trading in shares is also a business in income tax so you go ahead with trading if you are interested in it and just file ITR 3 declaring all your income, if you need I can help you with filing your return you just need to provide the details over e mail.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi Premkumar

Please share details of your trading. The income could be classified as business income or Capital gains depending upon your transaction details.

We may assist you with tax payments and return filing.

Dear Sir,

Hope you are doing well !!

Dealing in shares can result either in “Business income” (chargeable as Profits & Gains of Business or Profession chargeable under section 28 of the Income Tax Act, 1961) or “Capital Gains” (chargeable under Sec.45 of the Act).

Thus, dealings in shares could either be in the course of business – chargeable as Business Income, OR for the purpose of investment – chargeable as Capital Gains.

Classification into Business Income and Capital Gains depends on facts & circumstances of each case. However, as a very broad guideline, as held in many cases, it can be said that – ordinarily, the purchase and sale of shares with the motive of earning a profit, would result in transaction being in the nature of trade, but where the object of investment in shares of a company is to derive income by way of dividend etc., then the profit accruing by sale of shares will yield capital gains and not revenue gains (business income).

Every individual should be very careful in characterization of income from share trading as capital gain or Business income because this characterization will affect the tax liability of the individual to a great extent. 

Please share further details for appropriate answer.

Thanks & Regards,

Payal Chhajed

Dear Sir,

Trading in futures & options must be reported as a business unless you have only a handful of trades in the financial year. ITR-3 needs to be filed for F&O trading income/losses.

Reporting an activity as a business means you can claim expenses from earnings of your business.