ITR Capital Gain Or PGBM

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Nisha Kathuria

Accountant

240 Points Posted on 23 February 2024

Dear Sir,

I have invested some amount in shares market and purchased some shares via delivery. Trading is not my earning. Main income Source from Salary. In My demat account profit and loss statement approximately have 50 Transcation. out of 50 Transcation 1 tramscation reflect intraday Loss of Rs
132/- so I am not wrong intraday tramscation we cannot not show in Capital gain it's show under income from business and professional speculate income correct?

(2) Can we show rest 49 Transcation plus minus, value under Capital gain or need to show all under Income from business and profession speculate income.

(3) I am eligible For ITR3 because business income we can't show in ITR2

(4) Total profit From shares Rs. 2190/-
invested amount Rs. 22000/-

please suggest Sir,

Replies (3)

Quick Summary

This discussion clarifies the distinction between capital gains and business income for share market investments. Generally, delivery-based share transactions are treated as capital gains, while intraday trades fall under business income. The correct Income Tax Return (ITR) form depends on these classifications, with ITR-2 suitable for capital gains and ITR-3 for business income. Consistency in reporting is key, and verification with your Annual Information Statement (AIS) is recommended.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 19 May 2024

1. Correct.

2. 49 under CG & one under PGBP.

3. Yes.

4. Verify with AIS.

Aashok Kumar Sharma

Finance/Compliance Consultant

75646 Points Posted on 08 November 2026

Delivery shares: capital gains by default:

• Delivery-based purchases and sales of shares held as investments are capital gains (STCG under 111A if held up to 12 months, LTCG under 112A after). CBDT Circular 6/2016 lets you choose business treatment for listed shares if frequent trading, but you must be consistent.

• Intraday or F&O: business income (speculative or non-speculative).

• With only delivery trades, ITR-2 (capital gains). With intraday or F&O, ITR-3.

Aashok Kumar Sharma

Finance/Compliance Consultant

75646 Points Posted on 08 November 2026

Delivery shares: capital gains by default:
• Delivery-based purchases and sales of shares held as investments are capital gains (STCG under 111A if held up to 12 months, LTCG under 112A after). CBDT Circular 6/2016 lets you choose business treatment for listed shares if frequent trading, but you must be consistent.
• Intraday or F&O: business income (speculative or non-speculative).
• With only delivery trades, ITR-2 (capital gains). With intraday or F&O, ITR-3.