ITR for Trading Income: Which Form to File?

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If you're a salaried individual earning additional income from intraday trading, F&O, or positional share trades, you'll likely need to file ITR 3. These activities are generally considered business income, even for salaried employees. While ITR 2 is for capital gains on delivery-based trades, ITR 3 is required for business income. You can report business income alongside your salary, and a tax audit isn't always necessary if your profit margin is below a certain threshold.

Saurabh Srivastava

Saurabh Srivastava (Querist)
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02 October 2021 i am a salaried individual having additional income from intraday share trading , F&O and positional share trade....which ITR should i file,,,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2021 File ITR 3 intraday trading and F&O will be considered as business income.

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Saurabh Srivastava

Saurabh Srivastava (Querist)
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03 October 2021 I am a salaried individual so can i file for business income which ITR 3 would be requiring

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 October 2021 The intraday trading & F&O trading are considered as business income, so ITR 3 need to be filed. A salaried person can file ITR 3 if he has traded in the share transactions.

Saurabh Srivastava

Saurabh Srivastava (Querist)
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03 October 2021 Can't I show capital gain /loss in ITR 2

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 October 2021 No. For capital gains, shares are required to be transacted on delivery basis.

Saurabh Srivastava

Saurabh Srivastava (Querist)
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03 October 2021 in ITR 3 balance sheet/ PL Account has to be created which has to be audited.....so how can a salaried person show that he is running business too

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 October 2021 If your profit margin from trading is more than 6% (for turnover upto 2 Crs.), then there is no requirement of tax audit.

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Saurabh Srivastava

Saurabh Srivastava (Querist)
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03 October 2021 my problem is that i am salaried,,,working for a reputed organization....how can i show business income in my ITR

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2021 Such business income is allowed for salaried persons, no problem. Your employer will not raise any issue.

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