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Share trading

garima (Homemaker) (67 Points)

15 January 2019

I am a Housewife with no income. This financial year 2018-2019 i did share trading both intraday and positional. my total position is in loss and i am holding some shares for long term. Now, i want to how should i file income tax and in which section and what are the documents required to file tax. Trading was done in cash market. what documents are required from the broker to file income tax. please explain the procedure in layman language.

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rama krishnan (12234 Points)
Replied 15 January 2019

Ms. garima ji, if you hold the shares as investments, then you can declare either gains or loss from sale of your shares. if you have held your shares as stock in trade, you are supposed to declare minimum 6% of your turnover as total income or you need to audit your books.

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CA. Umesh kumar (ca.umesh11@gmail.com) (1465 Points)
Replied 27 January 2019

Income from intra day trading is to to treated as speculative profit from business, if delivery based trade but sold within one year then short term capital gain, if held more than one year then long term capital gain, profit from future and option is treated as business profit or loss. Broker will provide PL statement for financial year which is to used to file ITR. Even if you suffer loss you should file return before due date only then you can carry forward that loss for set off in future years from gains from shares.

CA umesh kumar- 9717597230