Income Tax Query presumptive tax and trading

I am a software consultant and fill ITR 4 under presumptive profession (Section 44 ADA). Last year also I used the same section to file ITR. I also have a valid GST number. This year apart from my professional income, I also have some Short term capital gains from sale of equity shares and intraday trading losses in equity shares. Please resolve below queries:-

  1. How and where to declare Intraday losses in equity shares in my ITR while filing under Sec 44 ADA. Is it mandatory to declare these losses while filing ITR? My turnover from intraday trading is very nominal less than 1 lac Rs (Absolute profit= Profit + loss on intraday trading). If I don’t want to carry forward losses can I ignore them and not declare at all?
  2. Is there any risk in ignoring intraday trading loss them altogether? As per my understanding 1 lac is a small amount only and i don’t want to carry forward the losses.


To report your presumptive income from software consultancy, STCG from sale of equity shares and loss from intraday trading, you need to file ITR-3.

  1. Report Intraday Loss in Schedule P&L (point. 65). If the losses are negligible, you may not report them on the basis that you dont want to claim and carry forward the losses.

  2. If the total income is more than basic exemption limit of INR 2.5 lacs and you want to claim the loss, tax audit under Section 44AB is mandatory.

Check out our determine tax audit tool :slight_smile: