filing of ITR for intraday trading in equities

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prakash joshi

• November 12, 2020 07:02

I am a senior citizen having income from salary, profession and interest on FDs. I have been filing ITR 4 myself for many yeats. This year I started intraday trading in equities and generated profit of about 40K also generated profit from delivery based trading having shaort term and long term gains.

My querry: Can i show my income from trading undersec 44ADA/AD as business income under the activity mentioned in ITR4 return form: ' Share broking and related activities'. Since all my income has accrued in my Zeroda trading account can I show my deemed profit as 6% of turnover (approx 20 lacs as per zerodha P&L statement)

Your guidance will be appreciated.

Thanks and rgds

Prakash

1

• Official comment

  

  Quicko Support

  • November 12, 2020 10:08

  Hey Prakash, 

  Profit can be reported as 6% or more of turnover under ITR-4, however, expenses cannot be claimed under the presumptive taxation scheme & losses cannot be carried forward. 
  
  The Nature of business code - Since no specific head available related to trading in the stock market, one can show the nature of the business under code “09028- Retail sale of other products n.e.c”. You should not be using "Financial Intermediation Services" as you are not providing service as Stockbrokers, sub-brokers, and related activities.

  If equity delivery is shown as presumptive income, every year it should be considered as business income only and not capital gains. If equity delivery is shown as capital gains and intraday trading as presumptive business income, ITR-3 should be filed. 

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