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STCG Income as Business Income ?

ITR 519 views 2 replies

Dear CAClub members,

Assumption -

1) An Individual who is full time investor/trader, no other primary source of Income and No Salary Income also

2) He want to file ITR 3

3) STCG Income (FY 24-25) - 12 Lakh (Total) and Tax payable 20% i.e, 2.4 Lakh (if he declares under gains)

4) LTCG - earned 2 Lakh and after exemption on 75 K he need to pay 12.5% i.e,  9,375/- 

Clarification needed -

Can this Individual show STCG under Business Income, file ITR 3 and pay tax as per slab rate ? 

 

Thanks in Advance

Subramanya

Replies (2)

you have to take a long term call on this. if his gains increase next year, the taxation under business income might end up being higher. plus, if you declare this under business income, you also need to account for the accounting as well as audit cost, where applicable.

Thank you Nikhilji,

Let me explore and take a decision


CCI Pro

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