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.

Ecstasyvio

Ecstasyvio (Querist)
Follow

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)
Follow

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)
Follow

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)
Follow

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)
Follow

19 January 2026 Then I need not pay advance tax

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

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

Ecstasyvio

Ecstasyvio (Querist)
Follow

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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

19 January 2026 You are welcome.

Ecstasyvio

Ecstasyvio (Querist)
Follow

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)
Follow

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

Ecstasyvio

Ecstasyvio (Querist)
Follow

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)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sasidhar B

suresh kotte

ASHOK B GONDKAR

Tanishka Khandelwal

Pawan Haryani

Subscribe Now

Itr .….......

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA