Intraday profits as business income

BESIDES INCOME FROM PENSION, RENTS, STCG, I GET INTRADAY TRADING PROFITS. Intraday annual gains are in small 3 digits. This petty sum necessitates filing of itr 3. Under business income I have only this small 3 digits gain of intraday profits to declare. Other columns / rows under business income will be nil. Can i claim stt, d.p charges , brokerage etc and arrive at a loss .(these expenses are more than the intraday profits). Is there any other requirement like maintaining of books , auditing of books etc to comply with.

Hi @Xavier_Thilagaraj_Gm

If these charges are related to intraday profit you can claim them under Speculative expenses in ITR even if the expenses are more than the profit earned.
Tax Audit applicability is dependant on your total income, turnover from trading, and income/loss from trading.
Maintainance of Books of accounts is required if Income from business and profession exceeds INR 1,20,000.

Thanks DIVYA

.

Pls REF TRAIL MAIL .

My intraday profits are meagre and the speculative expenses are more than the gains.

I DON’T HAVE ANY OTHER BUSINESS INCOME.

Can i avoid filing of ITR 3 and confine to itr 2 (when expenses are more than profit earned under business income- intraday )

THANKS

REGARDS

XAVIER

Hi @Xavier_Thilagaraj_Gm

If you wish to claim the expenses from intraday you have to file ITR-3. Since intraday is treated as speculative income it cannot be taken to ITR-2 as capital gains.

Hope this helps :slightly_smiling_face:

Thanks a lot Divya for your quick and clear reply.

THE FOLLOWING RULES ARE DIFFICULT TO DECIPHER DUE TO
“AND OR”

Tax Audit on Intraday Trading

:-Trading Turnover up to Rs. 1 Cr

If the taxpayer has incurred loss or the profit is less than 6% of Trading Turnover and total income is more than basic exemption limit, Tax Audit is applicable.##

1)HOW TOTAL INCOME IS ARRIVED . IS IT AFTER ALL DEDCTIONS.?
2)WHAT IS BASIC EXEMPTION LIMIT.?
3) CAN U GIVE EXAMPLE WHEN ASSESSEE INCURRED LOSS IN INTRADAY/PROFIT LESS THAN 6% AND TOTAL INCOME IS MORE TAN BASIC EXEMPTION LIMIT .

THANKS

REGARDS

XAVIER

Hi @Xavier_Thilagaraj_Gm

  1. Yes the total income arrives after all the deductions.
  2. Basic Exemption limit for individuals (below 60 yrs) is INR 2,50,000.
  3. When a person has a salary income of INR 10,00,000 and has intraday losses. In such a case, the total income would exceed the Basic Exemption limit.

Thanks a lot Divya for your quick and clear reply.

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