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
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
29 July 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details