Itr .….......

This query is : Resolved 

Quick Summary
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.

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.

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.

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.


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.)

19 January 2026 Then I need not pay advance tax

19 January 2026 Yes, as per available data...

19 January 2026 Ok thanks Sir ..............................

19 January 2026 You are welcome.

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.

13 April 2026 1. Yes.
2. Let the form be released... Generally under turnover or gross sales...

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

14 April 2026 Its debatable issue. Some experts agree, but not all.


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