SHORT TERM EQUITY AND ETF DELIVERY TRADING NEED TO BE SHOWN AS EQUITY TRADING BUSINESS INCOME


This query is : Resolved 

Quick Summary
This discussion focuses on how to accurately report short-term equity and ETF delivery trading as business income within an Income Tax Return (ITR). The user needs to show turnover and purchase costs for these trades, especially as they appear on the Annual Information Statement (AIS) and must match ITR figures. The query also touches upon the applicability of tax audit for businesses with turnover between 1-2 crore and how to handle different trading activities like intraday and F&O within the ITR structure, while maintaining a separate professional medical business under Section 44AD.

08 July 2024 I wish to show Equity and ETF Short Term Delivery based Trading as Business Income as client is doing Stock Market Trading Buisiness in All Intraday, Delivery, F&O & ETF Trading. As his Turnover of exceed above 1Cr but lower than 2 cr, I need to show his Turnover & Purchase Cost of Short Term Delivery Trading & ETF in proper column as this turnover is reflected in AIS & need to matched with ITR Figures (For Intraday there is specific column in PART A-Trading Ac point 12 & for options Turnover need to be reported & only profit/loss shall be reported as per my analysis). Also in last year I filled his ITR US 44AD with Professional Medical Buisiness & not shown his trading income/loss anywhere. His this yr income is below 2.5 (it is in loss) from all above activities hence I think Audit is not mandatory. Kindly Suggest is I m correct on my view and how to show this.

08 July 2024 What is the profit from the medical business?

10 July 2024 5 lakh Rupees. We mostly ignored Showing Capital Gain Loss or F&O Buisiness for many clients last year as AIS/TIS was newly incorporated last year and we were extreme bz in filling all clients ITR.

10 July 2024 Continue declaring the medical business under Sec. 44AD IT act. For shares transactions below 2 crs. Tax Audit is not applicable. Hope, cash transactions in medical business are not more than 5%.

11 July 2024 But Can you kindly suggest in which Specific Column/Sub Column of ITR3 Turnover (Short Term Delivery Trades) and Cost (Short Term Delivery Trades) needs to be shown.

13 July 2024 Sir Awaiting Reply for my query.

13 July 2024 Schedule BS & P&L of ITR 3.

26 August 2024 You are welcome.


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