Please solve my below query.
If i make more than 50 lacs from a Trading stocks & show it as a Business. then i need to file ITR-4s right.
now my simple question is now i am in higher tax bracket.(aprox 13lacs as per tax bracket)
How much % of this 13 lac i can safe legally if i show business expenses like (rent/electricity bill/salary etc) ??
If you show your income from trading in stocks as business income, you need to file either of the below ITR’s:
If you fall into the highest tax bracket (30%), you will save (30%+Cess 4%= 31.2%) on expenses. Since expenses shall reduce the amount of income and eventually you will have to pay lower tax.
For example: If my income before claiming expenses is INR 20,00,000
Tax on same shall be: INR 4,12,500 (before cess)
Tax after claiming expenses of INR 2,00,000:
Hope this helps 
thanks divya for your time and reply .helped alot
How to prepare balance sheet from Zerodha reports for ITR 3
Hey, here’s how you can prepare your balance sheet on Quicko.
In the Filing tab, navigate to INCOMES > BUSINESS & PROFESSION from the side nav
Enter details
From Summary Screen navigate to Financials
Click on Prepare Your Balance Sheet
Add Assets and Liabilities
Click on Save
Here’s an article that can help you with the same: Add Business & Profession Income : Help Center
Hope this helps 
Let’s say I received 100000 as gift from my father,
out of that I decided to use 50000 for trading
so do I have to show just 50000 on my balance sheet or entire 100000
Also if I have temporarily parked that 50000 cash in liquidbees, fd, stocks
how do I show it on balance sheet?
Hey, the INR 100000 will not reflect in your Balance sheet as it is a gift and the amount you have invested in liquid bees, need to be shown under investments. Hope this helps
If stock trading is my primary source of income (including F&O, Intraday and dividends but make up small percentage of net profits), then it should come under STCG or Business income?
Hi @Aaryan
According to the Income Tax Act, intraday and FnO transactions are considered as Income from Business & Profession under section 43(5).
However, it is determined as income from capital gain (STCG/LTCG) or income from business & profession depending on the nature of trades and the holding period.
Here’s a read on Capital Gain Tax : A Complete Guide - Learn by Quicko & Income Tax on Trading - Learn by Quicko for your reference.
I have been showing both LTCG & STCG as business income and have been paying tax according to the tax slab I fall in. But in the upcoming days, I will be taking up a job with Fin Ministry, a central govt job. Since no business is allowed while on the job, I will be having only LTCG from now on and no intraday and F&O, once I join the service. So from FY24, can I show LTCG as capital gains and pay flat 10%, rather than the tax slab I am paying right now (and 15% for STCG, if any) ?
Hi @M_Sridhar
As per the law, no government employees are allowed to speculate in any stock, share, or other investment.
When you file your return for FY 2023-24 you can report your trading income under the appropriate head (considering this income earned is when you were not a government employee). It will be incorrect if you report intraday and F&O under Capital Gains (LTCG or STCG).
Thank You.
Yes, I will not be speculating once I join the service. But till now I have been reporting LTCG as business income to claim business-related expenses. But from then onwards, I must report LTCG under capital gains ONLY (and can’t claim expenses), right?
Hi @M_Sridhar
If you’ve been reporting the LTCG from intraday and F&O trading as business income, it is correct.
Any other trading can be reported under “Income from Capital Gains.”
Here’s a List of Expenses a Trader can claim for your reference.