I filed ITR-4 for coaching class income up to last year. But from current year my client is also start to trade in share market and now he has following income
1 Coaching fees
2 Trading income from share market
3 Long/short-term capital gains from sale of shares.
Previously ITR-4 filed under his coaching class name now how to filed ITR and how to disclose above income.
Let me know which is correct ITR for above. Main income of client is coaching fees but his trading and interest income is more than his coaching class income so what to do please help me.
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Head income
Replies (14)
Quick Summary
ITR 2
ITR 3 will be applicable.
Itr is sufficient.
Sir let me know head of income under which said income disclose and it is necessary to change name from coaching to trader?
Coaching is service and should be declare under PGBP. No need to declare it as trader.
Shares trading be short term or intraday can be declared under PGBP.
While LT/ST shares investment gains should be declared under Capital Gains, including sched. 112A, if needed.
OK thank you sir, but let me know income from Intraday is credited to profit and loss A/c of coaching class itself to calculate net profit or require to prepare separately?
As such both the businesses are different and financial statements should be separate. Finally they will merge in income head PGBP.
Thanks sir it means I have to continue coaching class name in ITR and I have to prepare separately profit and loss account for coaching and trading in shares and finally I have to disclose combine profit figures in ITR same way I have to prepare balance sheet for both separately and combine them for ITR. Am I Right?
Yes, You are correct.
Thank you very much Sir for your quick response
You are welcome.
Sir if I prepare one profit and loss to calculate net profit (which is credited to my capital account) and then prepare separate statements for both business income ie income from coaching, income (profit) from trading, income from other sources (interest)..... Is it correct way to prepare accounting record?
In such case the income from intraday is calculated separately, or is given in statements of the broking firm, so that is directly credited to capital acc, while business income is accounted in usual manner.
Thank sir I will prepare two profit and loss account one for coaching and one for intraday/option then it is okay?
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