Which return should i file

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2011 I am a salaried govt. employee and i also have income from shares this year .
Which ITR form should i choose ?
should ITR-2 be used ??

Ravikant

Ravikant (Expert)

10 July 2011 If income from shares is Speculation,then use
ITR4,
Else, use ITR 2

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 Some of the shares were traded intraday - will they count as speculation gain ???
for delivery based trades are they Short term capital gains only ??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

11 July 2011 Yes. The Intra-day profit is speculation Business Income.

Delivery based profits are capital gains. In case you held shares for less than 12 months it will be STCG. In case of shares held for more than 12 months the arising capital gain would be Long Term.

Speculation Profit is treated as business Income and such ITR 4 is applicable to you.

A practical difficulty is faced by the Salaried employees in preparing Balance Sheet and P & L A/c. If the Intra day profit is nominal or small, you may show it as Income from other sources and accordingly may file the return in ITR-2.
This suggestion is based on practical aspect only.

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