Itr .….......

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Query on whether share trading profits (STT paid and non-paid) can be shown as business income in ITR. Expert confirmed it can be treated as business income as per CBDT Circular 6/2016 if consistently followed. Also discussed advance tax, 87A rebate eligibility, and optional use of 44AD for presumptive taxation.

Ecstasyvio

Ecstasyvio (Querist)
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17 January 2026 Whether share trading profits of INR 1 LAC in STT paid and STT not paid all in listed stocks can be shown as business income in ITR. I m trading since 5 year's I m a trader.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 January 2026 According to CBDT Circular No. 6/2016, taxpayers have the option to treat listed shares as "stock-in-trade," meaning the resulting profit is classified as business income rather than capital gains.
Consistency: Once you choose to treat listed shares as business income for a particular financial year, you must follow this approach consistently in subsequent years.
Trading Activity: Your intent to earn profit through frequent transactions (as a "trader") supports this classification, even for delivery-based trades where STT is typically paid.

Ecstasyvio

Ecstasyvio (Querist)
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18 January 2026 GREAT. THANKS SIR. I SHOULD HAVE DONE THIS LAST FY. NOT KNOWING THIS, I PAID 2000/- PLUS , AS STCG TAX @20%.
MY TOTAL INCOME IS APPROXIMATELY 6 LAC IN CURRENT FY, SO SHOULD I PAY ADVANCE TAX AT 5%? I AMSENIOR CITIZEN WITH PROFESSIONAL INCOME.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 January 2026 If your aggregate income is just 6 lakhs and if you are likely to declare the trading income, there will not be any tax liability at all. (considering rebate u/s. 87A IT act.)

Ecstasyvio

Ecstasyvio (Querist)
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19 January 2026 Then I need not pay advance tax

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 January 2026 Yes, as per available data...

Ecstasyvio

Ecstasyvio (Querist)
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19 January 2026 Ok thanks Sir ..............................

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 January 2026 You are welcome.

Ecstasyvio

Ecstasyvio (Querist)
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12 April 2026 WHETHER BALANCE SHEET, P & L STATEMENTS,BOOKS OF ACCOUNTS,ETC ARE REQUIRED FOR SHOWING TRADING INCOME AS BUSINESS INCOME IF SALES (TURNOVER) IS LESS THAN 1 CRORE. WHERE TO SHOW DELIVERY TRADING INCOME IN ITR3.
PROFIT IS 2.43% OF SALES.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 April 2026 1. Yes.
2. Let the form be released... Generally under turnover or gross sales...

Ecstasyvio

Ecstasyvio (Querist)
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13 April 2026 Can I opt for presumptive income under Section 44AD to skip books and statements, OPTING FOR 6% PROFIT

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 April 2026 Its debatable issue. Some experts agree, but not all.

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