This discussion addresses how to declare the nature of business for Futures & Options (F&O) income under the new tax regime, specifically for individuals filing ITR 3. It clarifies which business codes to use in Form 10IE, such as 'Financial Intermediation Services' or 'Other Services', and discusses how to account for pledged assets when determining proprietor's capital.
23 June 2023
1) Hello, I'm filling under the new regime from this year onwards. I've only F&O income (ITR 3). For selecting nature of business, should I go with:
a) Financial Intermediation Services -> Investment Activities/Other Financial Intermediation Services n.e.c. (Which one of the two?)
OR
b) Other Services -> Other Services n.e.c.
If it's some other option, please let me know. Also, didn't see code 09028 anywhere.
2) Also, I keep Mutual Funds, stocks, ETFs pledged with my broker & use that for Option Selling. Free cash is only around 5%. So, 'Proprietor's Capital' should include the pledged part or just the free cash?
23 June 2023
Maybe should have mentioned but am talking about the form 10IE here. In that, which option should I choose?
Edit: Okay, I did find the 'Retail sale of other products n.e.c' in form 10IE under the 'Wholesale & retail trade' category, but it doesn't come up when I type 09028, hence couldn't find it earlier..