Share Trading P&L: Where to Show Sales Value in ITR

This query is : Resolved

Quick Summary

This discussion clarifies how share traders should report the sales value of shares in their Income Tax Return (ITR). The consensus is that it should be shown in the Trading Account section, not as sales of products or services. It also addresses queries regarding the disclosure of opening and closing stock, purchase costs, and confirms that share trading sales are generally GST-exempt. Furthermore, it highlights that a tax audit may be required if sales exceed ₹10 crores.

Suraj

Suraj (Querist)
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07 September 2025 Dear Sir,

Mr A is a share trader. He is preparing proper PL BS for his share trading business. While filing his Income Tax return, where to show the sales value of shares in P&L section of ITR ? as Sale value of Products/Goods or as Sale value of services?

Please guide.

Thanks & Regards,
Suraj

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 September 2025 Sale value of goods...

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Suraj

Suraj (Querist)
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07 September 2025 Sir,
1) Do we need to disclose opening stock of shares, sale value of shares, purchase cost of share and closing stock of shares in ITR in case of Stock trader?
2) Will he attract GST if the sale value is Rs. 83 lakhs? and
3) Suppose the sale value exceeds 10 crores, then will he attract a tax audit also?
Please guide.
Thanks & Regards,
Suraj

Suraj

Suraj (Querist)
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07 September 2025 Sir,
Please reply to above queries.
Regards,
Suraj

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 September 2025 1. Yes in Trading account.
2. No. it is exempted.
3. Yes.

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Suraj

Suraj (Querist)
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07 September 2025 Thank you Rambhia sir!!!!!!

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Dhirajlal Rambhia