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nature of business for share transaction

12441 views 3 replies
what should be the Nature of
business for having only transaction in shares, itr compulsory demanding otherwise not allowed to file Return
Replies (3)

If the company is stock/share broker then following code ITR AY 2018-19 under financial intermediary services. If the company is trading in shares as its own business i.e., purchase and sale of shares in its own name then other services - not classified elsewhere

Other services n.e.c.

21008

Stock brokers, sub-brokers and related activities

13015

Since no specific head available related to trading in stock market, one can show nature of business under code “09028- Retail sale of other products n.e.c”. You should not be using 13015 which comes under "Financial Inter-mediation Services" as you are not providing a service as Stock brokers, sub-brokers and related activities. Also, you should not use 21008 which comes under "Other Services" because you are again not providing any service to anyone. You are simply buying and selling shares (Intraday) or just buying shares to be sold later (short term or long term). So it is like you are acting as a trader, a retailer.
Surprised to see that there is no clear code for intraday share trading.


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