Filing ITR-3 as a stocks/commodity/F&O /Currency trader

ITR 528 views 5 replies

FY2020-21 :This is the 1st year filing ITR3 as a business & have to tax audit as profit is less than 6% turnover  

I have some doubts (stock gambling only from april 2020)

  1. Intraday speculative trading : no calculation of buy & sell value of stocks right ? only profit/loss?
  2. STCG (BTST &up to 1month holding max ) buy& sell value of stocks comes under turn over as a business ?
  3. Have currency trades - comes under turn over as a business?
  4. Have few futures& option trades -comes under turn over as a business?
  5. Have Comodity trades --comes under turn over as a business?
  6. All brokerage charges ,STT,CTT,Stamp duty,Exchange fees can be claimed for which heads?
  7. What is the IT filing code for business “indivual speculator/stocks trader” (all these years I self filed ITR1 with only FD income as a senior citizen )
  8. I have 2 brokerages Tax P&L statements ( turn over total may be 4-5 crores) 
  9. Net I have profit in intraday & but losses in STCG , F&O, Commodity, Currency ttades etc
  10. can we adjust all & give a total P&L in ITR3
  11. looking for any auditor fees quotes .Any city is ok,
    but that CA must specialise filing for stock traders
Replies (5)

FY2020-21 :This is the 1st year filing ITR3 as a business & have to tax audit as profit is less than 6% turnover  

I have some doubts (stock gambling only from april 2020)

  1. Intraday speculative trading : no calculation of buy & sell value of stocks right ? only profit/loss? - Yes only profit and loss to consider but sum up the profit and loss (ignoring the negative sign)
  2. STCG (BTST &up to 1month holding max ) buy& sell value of stocks comes under turn over as a business ? - Buy today and sell today falls under Speculation, Short term trading falls under Business if your intension was to trade in stocks and not to hold stocks as investments.
  3. Have currency trades - comes under turn over as a business? - Yes currency trade falls under Business
  4. Have few futures& option trades -comes under turn over as a business? - Yes futures and options do fall under business however, turnover is calculates as per the speculation business only and adding the premium earned or paid for such Options.
  5. Have Comodity trades --comes under turn over as a business? - Yes commodity trading falls under business
  6. All brokerage charges ,STT,CTT,Stamp duty,Exchange fees can be claimed for which heads? - All charges can be claimed as business expenses against each type of business activity carried out
  7. What is the IT filing code for business “indivual speculator/stocks trader” (all these years I self filed ITR1 with only FD income as a senior citizen ) - ITR 3 needs to be filed and 2 business codes will be selected 1) Trading Others - Mention F&O in descripttion  2) Speculation business - for intraday stock transactions
  8. I have 2 brokerages Tax P&L statements ( turn over total may be 4-5 crores) 
  9. Net I have profit in intraday & but losses in STCG , F&O, Commodity, Currency ttades etc - yes loss from other businesses can be set off agaisnt intraday profit
  10. can we adjust all & give a total P&L in ITR3 - Yes a total P&L is possible to show but bifurcation on nature of income needs to be done separately.
  11. looking for any auditor fees quotes .Any city is ok, 
    but that CA must specialise filing for stock traders - We can help you out to solve each and every query, conduct an audit also for the required transactions. Our firm name is N. Gamadia & Co. (CA) based at Ahmedabad. We are three partners and have qualified staff of more than 15 persons.
  12. You may contact us at zealbangdiwala @ ngamadia.com

Hi Zeal

Thanks for a compehensive point by point answer that inspires confidence that you are filing IT returns for many stocks /F&O traders.

Point no 2 :BTST- in stock market lingo it is "buy today sell tomorrow " (but still considered delivery trade under STCG )... (same day buy/sell is intra day speculative trading )

I will defenitely email you this week end with some information so that you can quote your charges

I am not a long term trader(so no LTCG).I sold what all I had on 26-3-21 & it settled on 31st late evening only. & have put in a with drawl request of all funds which may credit back in to my bank tomorrow.

Starting new Tax year on 5th april with a clean slate. No carry forward holdings..

I will have tax P&L download from 2 brokers. Let me merge the data side by side in a single spread sheet & then contact you.

Thanks & best regards

Thank you for the complement highly appreciate sir. 

Surely we shall connect whenever it's convenient for you.

I think the time has come to prepare ITR3 with tax audit.(30th sep may be postponed?)

Contact ASAP at your convenience

Hello Sir, i have already sent a mail to you on 29th April 2021. Pls check the same , let me know if in case you have not received the same.


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