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Share trading business itr

Vikash (G) (360 Points)

03 June 2021

If i am frequently buying and selling shares intraday and shortterm if i file itr3 do i need to show all transaction in itr or only profit in Itr

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16 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 03 June 2021

File ITR 3 and show the respective profit or loss arises from such Intraday trading

Vikash (G) (360 Points)
Replied 03 June 2021

Do i need to disclose each and every transaction or only profit or loss

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 03 June 2021

Only profit and loss make sure with others also

Vikash (G) (360 Points)
Replied 03 June 2021

Does it require tax audit or not

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 03 June 2021

Yes tax audit is required

Vikash (G) (360 Points)
Replied 03 June 2021

Tax audit required in what case

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 04 June 2021

For Intraday trading tax audit if done it will be better

Ankit Neema (2742 Points)
Replied 04 June 2021

Intraday is required to be shown as business income. Tax audit is required only in case if turnover is more than 1crore.
Short term gain or loss required to be shown in capital gain head.
You generate the report of intraday transactions and capital gain report from your Dmat account.
I will advice you to file your return with CA, so that your return will be filed properly.

Vikash (G) (360 Points)
Replied 04 June 2021

Intraday turover calculation will be profit and loss amount am i right

Vishal Manakshe (266 Points)
Replied 05 June 2021

Yes,
First convert loss into positive as if it was never a loss,
then sum up the profits and loss(in positive).

The total shall be considered as Turnover.

I think, intraday will be considered as Speculative business, and if your Turnover exceeds 1cr, tax audit is required.

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 06 June 2021

Yes if profit or loss exceeds 1 crores rupees then Tax audit is required

Vikash (G) (360 Points)
Replied 07 June 2021

Does tax audit applicable on short term and long term trading also

Vishal Manakshe (266 Points)
Replied 07 June 2021

If Short term/Long term holdings are considered as Capital Gain, then no need of Tax audit irrespective of turnover.

If such holdings are considered as Business, then Tax audit is required, subject to Turnover of Rs 1crore

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Vikash (G) (360 Points)
Replied 07 June 2021

Ok than if i consider intraday trading as speculation gain from business and short/long term trading as capital gain than tax audit is not required if turnover not exceed above 1crore in intraday trading. am i right sir

2 Like