Tax Consultant
1645 Points
Posted on 19 June 2026
Intraday equity trading is classified as speculative business income under Section 43(5). The key point is the NATURE of income, not the amount.
ITR-2 is only for individuals with no income from business or profession. Since intraday trading is treated as speculative business income, even Rs 500 of intraday profit disqualifies you from ITR-2. The amount does not matter.
You need ITR-3 to report:
- Salary, capital gains, other income in the same return
- Intraday income separately under speculative business in Schedule BP, Part B
One benefit: if you have a speculative loss, ITR-3 lets you carry it forward for 4 years and set it off only against future speculative gains. But this carry-forward right exists only if you file ITR-3 on or before July 31, 2026.
For a breakdown of the key ITR form changes and income reporting rules for AY 2026-27, this [income tax rules 2026 guide](https://taxgarden.in/blog/income-tax-rules-2026-key-changes-india) covers the new schedule requirements for trading income.