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Which itr form to be filled

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jatinder kaur

103 Points Posted on 16 September 2020

Good Afternoon Sir,

from f.y.19-20, I started trading in NSE
as a beginner I bear some loss

I am trading from my home

now I want to know for income tax return filing for a.y.20-21, which form is to filed by me

Thanks in an advance

Replies (5)

Quick Summary

If you've been trading shares from home and incurred losses, you might be wondering which Income Tax Return (ITR) form to file. Generally, if your only income source is share trading (intraday or positional) and you have some savings interest, ITR-2 is likely appropriate. However, if your trading activities are considered a business (e.g., a retail shop), you'll need to file ITR-3.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 16 September 2020

Based on information given,
You can file ITR 2 (if you have this loss, any salary income or any income from other sources..
but if you have any business income also along with this, than you have to file form ITR 3.

jatinder kaur

103 Points Posted on 16 September 2020

First of all thanks
during f.y.19-20, I was only engaged in retail trading
& having nominal saving bank interest amt

sabyasachi mukherjee

Profession

19978 Points Posted on 16 September 2020

Bank account is not the criteria.
It's basically the nature of income.
In case you want to scale it up and your income is under a seperate co. it is seperate.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 17 September 2020

"engaged in retail trading" it's means share trading or you have other retail trading business (i.e retail shop)

If You have other retail Trading shop than its business income a required to file ITR 3.
otherwise you can use ITR 2