F&O Trader - Balance Sheet in ITR

Income Tax 1961 Income from Business or Profession
1

F&O Trading profit for FY 2023-24: 20L

I had about 1c with broker (Zerodha) while I was trading.

I stopped trading last year and moved money to my bank account in Middle East (I am an NRI).
Money was moved out in phases.
e.g. 20L in July, 70L in August, 10L in September.

What should I put as Proprietor’s Capital in Balance Sheet? 10L since that was the last bank balance during last Zerodha withdrawal? That would mean Proprietor’s Capital (10L) < Profit (20L). Will that make my return defective?

In last years return, I had put in Proprietor’s Capital as ~1.5c (Zerodha trading account balance + bank balance)

2

Hey @Pratha,

Yes, you can put in ₹10L as the proprietor’s capital. It will not affect your ITR.

3

Just wondering does this Balance sheet component of ITR have any significance for those doing share market trading ? I mean what value to put here so that there is no issue from ITD ? Can it just be closing balance of the Funds of various demat accounts as on 31/03

4

Hi @hpant,

Apart from the closing balance of your demat accounts, you can also include the closing balance of the bank accounts used for trading. This will help ensure clarity and accuracy in your filing.

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5

Thanks .. Will do that.. Hopefully this is not something rigorously scrutinised.

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