Income Tax Filing ITR for Trading Income
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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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I had to take help of a CA. 😔 Had to be audited as well.
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?
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?
https://www.desidime.com/discussions/income-tax...
Intraday trading comes under gains from speculation business.
You just have to enter the turnover and net profit amount.
I do it via cleartax
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.
This is applicable to short term or long term capital gains and not for intraday trading.
Itr 3. Itr 3 for speculative gains + FnO
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
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.
STCG filling is simple. LTCG requires in-depth filing of details for which IT Consultants take 2-4K. Saves whole lot of headache.
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.
🐒
@Juniper ~ I use the paid services of a CA/ IT Lawyer.
What are your transactions and how much he charges.
i think he just shows stcg,ltcg etc and not every trade
My net profit is less than 30k .still i need to file itr for trading. ?
Need more information, like number of trades, equity only or FnO also. Turnover etc.
1. No, I think. If you have zerodha, they have some software to automatically file all of the transactions/trades, but they charge for it. But in cleartax you need fill manually for ltcg/stcg profit loss for individual shares.
2. When you say 200 equity trades, have you done transactions on 200 different shares or 200 transactions? If that is 200 transactions, you can count same share transactions as one and fill the profit or loss with volume as single. Yes, for intraday, which is counted as non speculative income, you should give turnover, profit/loss and expenditure only, no need of individual.
3. F/O(speculative) is also same as intraday(non speculative), you have to show turnover, profit/loss and expenditure. You can show charges under expenditure excluding stt.
I may be wrong, some one will commet if I’m wrong. Thanks in advance 
Why are you misleading , intraday income is speculative income and you are saying it is non-speculative
How much is your total income and total turnover from these transactions – You can use presumptive tax provision 44AD to file your return under ITR 4 (Earlier ITR 4S) and can save the hassles of giving individual details and hiring a CA. The only condition is that u have to show a profit of 8% or turnover or actual, whichever is higher. Also there are turnover limits upto which section 44AD can be applied, if your turnover is more than those limits, then mandatory audit by CA and filing under regular ITR 3 (Earlier ITR 4).
Last year i did some delivery based trade and filled ITR 2 at cleartax.in