Can Intraday Profit/Loss be reported as Short Term Gain/Loss in ITR-2 ?

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Taxpayer
112 Points Posted on 20 July 2021

Sir,

Can Intraday Profit/Loss be reported as Short Term Gain/Loss in ITR ?

Regards,

Vinod Kapoor

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On 20 July 2021 at 19:31 Report
Replies (11)
Quick Summary
This discussion clarifies whether intraday profit and loss should be reported as short-term capital gains or speculative business income in an ITR-2 filing. The consensus among professionals is that intraday trading is considered a speculative business, not a capital gain. Therefore, such profits and losses should be reported as speculative business income, typically in ITR-3, rather than capital gains.

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Chartered Accountant
24588 Points Posted on 20 July 2021
Yes it will be treated as capital gains
1 Reply
On 20 July 2021 at 20:02
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Taxpayer
112 Points Posted on 20 July 2021

But many professionals different.

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On 20 July 2021 at 20:47
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Taxpayer
112 Points Posted on 20 July 2021
Originally posted by : Vinod Kapoor
But many professionals differ?

 

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On 20 July 2021 at 20:48
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CMA
13117 Points Posted on 20 July 2021
Profit/loss from intra-day trading is regarded as speculative business income. Treating it as a capital gain would be inappropriate I think.
1 Reply
On 20 July 2021 at 21:42
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Chartered Accountant
24588 Points Posted on 21 July 2021
Yes it will be treated as capital gains
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On 21 July 2021 at 05:56
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Chartered Accountant
86505 Points Posted on 21 July 2021
Intraday profit/loss to be treated as speculative business income and same is to be reported in ITR-3.
1 Reply
On 21 July 2021 at 08:28
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Chartered Accountant
24588 Points Posted on 21 July 2021
Agree
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On 21 July 2021 at 10:09
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tax consultant
3306 Points Posted on 21 July 2021
Intraday activity cannot be treated as capital gains.
it is deemed to be speculation business.
1 Reply
On 21 July 2021 at 13:21
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Chartered Accountant
86505 Points Posted on 21 July 2021

Sourav, why you are fooling others just for sake of some points on CAclub.

4 Reply
On 21 July 2021 at 13:43
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1236 Points Posted on 17 August 2021
Speculative business income.
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On 17 August 2021 at 17:45
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58 Points Posted on 19 August 2021

Intraday trading is "speculative business" and the gain/loss is considered speculative gain/loss. It cannot be included in capital gain/loss.

The tax liability is higher but it is much easier to fill the ITR for speculative income. No need to show individual transactions.

 

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On 19 August 2021 at 00:13

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