I am a retired person and spend some time in share trading (only equity, no F&O).
Should I file the return as an individual or as a business? Any thumb rule for this?
My problem is, I don't make much money (less than 1 lakh in a year) and it is difficult for me to file the returns as a business as it involves preparation of Balance sheet and P&L.
Request someone to give a clear reply.
Best regards,
If you are intraday trader, your activity in itself is a business. Whether you accept it or not, your profits are treated as income from business (or 'PGBP') ..
Now based on your trading account name or statements, you can file ITR4 if you declare minimum 6% profits of your net turnover (positive of differencial of each trade), provided it doesn't exceed 2 Crs.
Otherwise you will have to file ITR3........ Audits may not be applicable (to be checked)
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Bengaluru
CA
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