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Itr form.for share trading

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Jyoti Narang

Kkk

885 Points Posted on 08 October 2021

itr2 or itr3 to be filled for share Trading?

Replies (3)

Quick Summary

Choosing the correct Income Tax Return (ITR) form for share trading depends on the nature of your transactions. If you're an individual or HUF with capital gains/losses from delivery-based trading that isn't your primary business, ITR 2 is generally sufficient. However, for intraday trading, or trading in Futures and Options (F&O), you'll need to file ITR 3. This also applies if you combine delivery-based trading with F&O or intraday activities, or if share trading is part of your overall business.

Kev Men

486 Points Posted on 08 October 2021

If assessee is individual/HUF and there is Capital gain/loss, then ITR 2 is sufficient. This will be when you do trading on delivery basis and it is not your business.

If assessee is individual/HUF and has income from intraday trading (i.e. without delivery) or has traded in Futures and Options, then ITR 3 will be applicable.

If individual/HUF assessee does delivery based trading, and/or FnO and /or intraday trading then itr 3 will be applicable.