Small intraday trading..whether ITR 2 can be used?

I am a senior citizen pensioner. I dabble in share trading (small scale). By mistake I did a single intraday trading resulting in profit/turnover of Rs. 50/-. This happened recently in Q4 of FY 25-26.

a. Now, can I use ITR 2 instead of ITR 3, being a small speculative profit?

b.  Being senior citizen, I had not paid advance tax till now (total liability of tax about Rs. 13 lakh). Will filing ITR 3 (due to small business income), result in penalty under 234B/C for non payment of advance tax? (Rs. 50 profit vs Rs. 1 lakh loss by way of penalties)

Thanks for any clarification/suggestion in advance.

 

 

Replies (5)
Quick Summary
Intraday trading is speculative business income, so ITR-3 is technically required even for Rs 50 profit. ITR-2 is not correct. Interest u s 234B and 234C is unrelated to this small trade; impact is negligible.

 

  • Intraday income = speculative business → ITR-3 (technically correct)

  • ₹50 profit is too small to materially impact compliance

  • Interest u/s 234B/234C is NOT because of intraday trade

  • Senior citizen exemption may technically get affected, but impact is negligible in this case

 

Turnover how much?????

Since it's a single trade, the turnover is Rs. 50/- only

Intraday trading income is always classified as speculative business income under the Income Tax Act, regardless of the amount or frequency. This means ITR-3 is required -- not ITR-2. The good news is that intraday losses can be set off against other speculative income in the same year and carried forward for 4 years. If you are salaried and have only occasional intraday trades, a CA can help you file ITR-3 correctly while also claiming your salary income and deductions.

@ Tax Garden, Plz do not do your hard sale. Answer what the poor fellow is worried about, if interested.

@ Aashok FC Advisory has aleeady provided proper advice to @ Rajiv Gupta

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details