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Income Tax Filing ITR for Trading Income

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Juniper

How you file ITR? I download trade book from Zerodha console, then manually enter all trades (buy + sale date & price) of ALL transactions in that financial year into ClearTax capital gains tab, then it calculates STCG / LTCG for me.

For all pros here,
1) How do you ‘show’ your transactions in ITR for STCG / LTCG ?
2) How do you ‘show’ your intraday transactions, since they are so many?
3) How do you ‘show’ your FnO transactions?

Is there any better way to do Tax Filling than the way I’m doing it? I have not done any FnO transactions yet since I cannot file the taxes for that by myself. I know FnO comes under business income, but don’t know how to  ‘show’ it in ITR.

All Guru’s here who do trading full-time, do you use IT Department portal, or any 3rd party site for tax filing.

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Deal Subedar Deal Subedar
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Last year i did some delivery based trade and filled ITR 2 at cleartax.in

Hunk Hunk
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I had to take help of a CA. 😔 Had to be audited as well.

Deal Cadet Deal Cadet
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You need to file ITR 2. If you want to carry foward your net loss you need to provide transaction wise complete breakup for the year.

Crowdpuller Crowdpuller
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As u said transactions are many,
You can show this as business income/loss also

Deal Cadet Deal Cadet
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If your trade is Intraday you have to show it as Business Income/Loss. If it’s not intraday than you have to show it as STCG and pay 15% tax on profit. In case of loss you can carry forward your losses

Deal Cadet Deal Cadet
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PshycoKiLLeR wrote:

If your trade is Intraday you have to show it as Business Income/Loss. If it’s not intraday than you have to show it as STCG and pay 15% tax on profit. In case of loss you can carry forward your losses

Yes. I know the rules. But my question is how do you ‘show’ the transactios in ITR? Do you manually enter trade by trade or how if you have 100+ intraday transactions? Which site you use for ITR filing?

Deal Cadet Deal Cadet
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gauravnandwanii wrote:

As u said transactions are many,
You can show this as business income/loss also

Yes I know the rules. If you have done 100+ intraday transactions, then do you manually enter all trades for ITR filing?

Deal Cadet Deal Cadet
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bikidas2060 wrote:

I had to take help of a CA. 😔 Had to be audited as well.

Did you do intraday & FnO transactions both?  Also kindly tag CAs, Traders and tax experts in this post.

Deal Lieutenant Deal Lieutenant
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titamazon wrote:

Last year i did some delivery based trade and filled ITR 2 at cleartax.in

Is ITR 2 free on cleartax if filling by self? Any extra charges?

Hunk Hunk
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Juniper wrote:

Did you do intraday & FnO transactions both?  Also kindly tag CAs, Traders and tax experts in this post.

FnO and delivery only. Scalping too. 🙂🙂🙂

Deal Captain Deal Captain
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Juniper wrote:

Yes. I know the rules. But my question is how do you ‘show’ the transactios in ITR? Do you manually enter trade by trade or how if you have 100+ intraday transactions? Which site you use for ITR filing?

Intraday trading comes under gains from speculation business.
You just have to enter the turnover and net profit amount.

Deal Cadet Deal Cadet
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7H4NO5 wrote:

Intraday trading comes under gains from speculation business.
You just have to enter the turnover and net profit amount.

Thanks! Do you trade in FnO & intraday both?

Deal Captain Deal Captain
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Juniper wrote:

Thanks! Do you trade in FnO & intraday both?

Earlier used to trade in both but now in FnO only.

Deal Cadet Deal Cadet
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7H4NO5 wrote:

Earlier used to trade in both but now in FnO only.

How do you file your taxes? Yourself or by CA. Which site you use.

Deal Captain Deal Captain
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Juniper wrote:

How do you file your taxes? Yourself or by CA. Which site you use.

I’m studying CA. So I do it myself through winman software.

Deal Cadet Deal Cadet
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Applicable to STCG/LTCG:

Use ITR 2 from Income Tax department website.

It gives you an Excel sheet with prefilled column headers.
You need to put details of each trade in those Columns e.g. ISIN, sell price, etc.

While pasting data, ensure you do Ctrl+Alt+V, select Value.
This avoids calculation errors by not converting numbers to text.

After Excel is completed, it can be converted to XML using buttons in the Excel.
This xml file needs to be uploaded to IT website.

Deal Captain Deal Captain
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sanklecha.mahaveer563 wrote:

Use ITR 2 from Income Tax department website.

It gives you an Excel sheet with prefilled column headers.
You need to put details of each trade in those Columns e.g. ISIN, sell price, etc.

While pasting data, ensure you do Ctrl+Alt+V, select Value.
This avoids calculation errors by not converting numbers to text.

After Excel is completed, it can be converted to XML using buttons in the Excel.
This xml file needs to be uploaded to IT website.

This is applicable to short term or long term capital gains and not for intraday trading.

Community Angel Community Angel
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ITR 2 cannot be used for intraday

Hunk Hunk
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drupal wrote:

ITR 2 cannot be used for intraday

Itr 3. Itr 3 for speculative gains + FnO

Community Angel Community Angel
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https://cdn0.desidime.com/attachments/photos/666390/medium/7399895IMG-20210219-112133-187-2.jpg?1613714612

For speculative income eg: intraday trading
You need to fill ITR 3 P&L
Column number 65 i, ii, and iii
net income from speculative activity will be auto calculated in iv

i Turnover = profit+loss
ii Gross profit= Total Buy value – Total sell value
iii Expenses = brokerage charges or other expenses incurred for this speculative activity

iv Net income from speculative activity (auto calculated)
Calculate as I mentioned above and then fill respective columns

Deal Subedar Deal Subedar
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just to be sure, all of this (ITR-2/3) needs to be done only when net p&l from trading exceeds 1L, correct?

Deal Captain Deal Captain
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srp321 wrote:

just to be sure, all of this (ITR-2/3) needs to be done only when net p&l from trading exceeds 1L, correct?

There is no such criteria. If you want to report capital gain, use ITR-2 and if both capital gain and business income (FnO trading) then use ITR-3.

Deal Subedar Deal Subedar
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rohan8397 wrote:

Is ITR 2 free on cleartax if filling by self? Any extra charges?

Its free, u can also upload ur form 16, zerodha provided p&l tax statement and they will do all calculation and fill ITR 2

U can also manually modified if found any discrepancy.

Deal Subedar Deal Subedar
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STCG filling is simple. LTCG requires in-depth filing of details for which IT Consultants take 2-4K. Saves whole lot of headache.

Deal Newbie Deal Newbie
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in itr2 for LTCG, we don’t need to show each transaction, if the shares are bought after 31st Jan 2018, right? we just need to fill consolidated value and cost in 112A.

Community Angel Community Angel
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bikidas2060 wrote:

I had to take help of a CA. 😔 Had to be audited as well.

What price he charged , online or local?

Community Angel Community Angel
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titamazon wrote:

Its free, u can also upload ur form 16, zerodha provided p&l tax statement and they will do all calculation and fill ITR 2

U can also manually modified if found any discrepancy.

These sites are providing good service

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