Income from Intraday and F&O trading is considered as Business & Professional Income under the IT Act. And books of accounts are required to be maintained for the same throughout the year. The outcome of the same is P&L and Balance Sheet which needs to be reported while filing ITR-3.
It is a reporting requirement as per ITR3 to add a balance sheet & P&L. Income and expenses from business and profession generate the Profit and Loss statement. Meanwhile, the balance sheet comprises of closing balance of assets and liabilities for the financial year (eg: bank balance, balance with broker, cash balance in assets). As per the accounting rule, assets should always equal liabilities which should be accounted for when preparing the same.
Learn how to add/edit assets & Liabilities in the balance sheet on Quicko?
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