Intraday trading - File ITR 3 ? TaxAudit?
This query is : Resolved
13 December 2020
Hi,
I am a salaried person and have total income above 5 lac.
I did some intraday trading and had
Intraday Profit - Rs.11
Intraday Turnover - Rs. 3010
As per some articles that I read on cleartax, quicko etc.,
It seems like I should file ITR 3 and since, my Intraday profit is less than 6% of turnover - I am liable for tax audit.
I wanted to confirm regarding the same.
Is it fine to consider it as SCTG and file ITR 2/3 so that I don't have to get tax audit done?
I am a salaried person and have total income above 5 lac.
I did some intraday trading and had
Intraday Profit - Rs.11
Intraday Turnover - Rs. 3010
As per some articles that I read on cleartax, quicko etc.,
It seems like I should file ITR 3 and since, my Intraday profit is less than 6% of turnover - I am liable for tax audit.
I wanted to confirm regarding the same.
Is it fine to consider it as SCTG and file ITR 2/3 so that I don't have to get tax audit done?
14 December 2020
File ITR 3 it's speculative transaction tax audit not applicable for this amount.
Message likes :
1 times
14 December 2020
Thank you very much sir for the advice.
One follow up question - While filing ITR3, do I have to put this transaction as Business Income. And what about maintaining Book of Accounts?
One follow up question - While filing ITR3, do I have to put this transaction as Business Income. And what about maintaining Book of Accounts?
15 December 2020
Yes, show it under business income. Books of accounts not required for this small amount.
15 December 2020
Yes you can file your IT return without tax audit because your turnover is less than the tax audit limit.
16 December 2020
Hi CA R SEETHARAMAN & Spurto Consultancy,
Thanks for the advice but I found a different opinion on some other articles.
As per that, if I use 44AD and file ITR 4, then I have to show a minimum of 6% of turnover as profit.
Otherwise, I will be required to do tax audit.
If I don't use 44AD and file ITR3, I have to show it as normal income and maintain book of accounts and also do tax audit.
Let me know if that's true.
Thanks for the advice but I found a different opinion on some other articles.
As per that, if I use 44AD and file ITR 4, then I have to show a minimum of 6% of turnover as profit.
Otherwise, I will be required to do tax audit.
If I don't use 44AD and file ITR3, I have to show it as normal income and maintain book of accounts and also do tax audit.
Let me know if that's true.
16 December 2020
Intra day trading is speculative business so 44AD not applicable.
28 October 2021
I beg to differ, though speculative business, intraday business is eligible for presumptive assessment u/s. 44AD, provided other criteria are satisfied.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Loan by Partnership Firm
- TDS related Query_Liquidated Damages
- Long Term Service award taxability in hands of company
- Free lancer income
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
