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

ITR 526 views 5 replies

Rajiv Gupta

Others

66 Points Joined July 2013

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)

Aashok FC Advisory

Finance Compliance Consultant

414 Points Joined March 2026

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

sabyasachi mukherjee

Profession Business

28194 Points Joined May 2017

Turnover how much?????

Rajiv Gupta

Others

66 Points Joined July 2013

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

Tax Garden

Tax Consultant

10 Points Joined April 2026

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.