ITR 2 or ITR 3 to file ?

Save Share

This query is : Resolved

Quick Summary

This discussion helps clarify whether to file Income Tax Return (ITR) 2 or ITR 3. The user has bank interest, short-term and long-term capital gains from delivery-based trading, and a small amount of intraday trading income. The main concern is avoiding the need to prepare a Balance Sheet and P&L statement if ITR 3 is required for the intraday trading income. Advice suggests ITR 3 might be necessary but can be filed with minimal details in specific columns, avoiding extensive financial reporting.

Student

Student (Querist)
Follow

22 July 2024 Dear Sir,
Please guide that I have only Bank Interest Income (Rs.1 Lakh) + Short Term Capital Gain + Long Term Capital Gain of Delivery based trading ( Rs.2.15 LaKH) + Rs.3689/- Intraday Share Trading. Now for these small Rs.3689/- gain (speculative or business gain) will I have to file ITR 3 or filing ITR 2 with showing Rs.3689 in other income will do ? Because once I file in ITR 3 , I have to prepare Balance Sheet and P & L etc and I do not want to make for such a small amount and time is also less. so please guide what I should do ?
Thanking you
Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 July 2024 Better to file ITR 3. No need to provide financial details. Just fill details in column 12(a) & 12(b) of trading account.

Student

Student (Querist)
Follow

22 July 2024 Sir, you mean to say that only if I fill this details in 12(a) and 12(b) that will be sufficient and no other details like Capital, assets, P and L I have to show right sir?

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 July 2024 Though few details in that are required, but alternative is fill Column 65 in Schedule P&L and Column 6 of Schedule BS. No other details required.

Message likes : 1 times

Student

Student (Querist)
Follow

23 July 2024 Thank you sir for your quick response.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 July 2024 Good luck...

Student

Student (Querist)
Follow

23 July 2024 Sir, one more confusion. You mean to say that I can file in no account case. But my income from other sources and short term + Long Term Capital gain is added it crosses exemption limit of Rs.250000/-. In nut and shell , my FD interest income is Rs.100000/- + My Short term Capital gain from delivery based trading is Rs. 2,15,000/- + My long term capital gain from shares sold is Rs.24800/- + My intra day trading (total trades 5 only) is Rs.3689/- + Dividend Income is around Rs.4000/- so my income from speculative income is Rs.3689 only but other income addition crosses Rs. 2.5 Lakh. In this case , can I file no account case in old regime this year(as in old regime tax is coming zero due 87-A) and can change to new regime from next year. Please reply sir. Thanking you in advance. Kind Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 July 2024 1. Yes, your business activity doesn't mandate books keeping as per sec. 44AA IT act.
2. As there is business activity, opting in and out of tax regime is restricted in your case, so decide the switch based on benefits. Yes, you can opt old regime this year by filing form 10IEA, and if you opt out old regime next year, then you will never ever be able to opt old regime again.

Student

Student (Querist)
Follow

23 July 2024 Thank you once again Sir

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 July 2024 My Pleasure.

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!