Nowadays, many people have started investing in stock market to earn some passive income. Especially a boost has been seen after lockdown when people were are working from their home, where either people were saving more money or people had lost their jobs and in both scenarios people started investing in stock market to earn some income.
Among this the salaried group of people are the one who are actively investing into stock market, they invest in stock, do F&O trading, intra day trading etc.
However they are confused as to how to file their return of income, where to show such income or loss, which ITR to choose and whether to claim loss or not. So in this post we shall discuss such questions and try to answer them.
The first question and the most basic question would be: Is one required to show such transaction in the return if there is no sale or there is a loss in the sale?
The answer would be if there is no sale no need to show it in the return and if there is a loss, it is recommended to include it in your return of income and carry forward the same as same would be helpful in future when you earn profit. We have discussed on it in detail in our earlier post for who needs to file return of income.
The second most common question is whether to show such income in the same return with salary income or separate return of income. We have also answered this question in our earlier post relating to myths of income tax return wherein we have said that for one person one return of income can be filed even if he is earning income from different sources.
Now the most important question: Which ITR to file?
| Particulars | ITR 1 | ITR 2 | ITR 3 | ITR 4 |
| Salary Income | Yes | Yes | Yes | Yes |
| Income from One House property | Yes | Yes | Yes | Yes |
| Income from other sources | Yes | Yes | Yes | Yes |
| Income from more than one house property | No | Yes | Yes | No |
| Income from Presumptive business including F&O | No | No | Yes | Yes |
| Income from Intraday business | No | No | Yes | Yes |
| Income from Capital gain from sale of listed or unlisted shares | No | Yes | Yes | No |
| Income from Capital gain from sale of equity oriented or Debt oriented Mutual fund | No | Yes | Yes | No |
| Director in a company or holding unlisted equity shares | No | Yes | Yes | No |
| Total income above Rs. 50 lakh | No | Yes | Yes | No |
| Book your ITR filing by clicking the Link | CLICK HERE. | CLICK HERE. | CLICK HERE. | CLICK HERE. |
*The above links for filing of ITR are related to resident individual taxpayers if you are a non resident or other than individual use below mentioned links to file your ITR with the help of experts.
Also the turnover in case of F&O and intra day transaction would be calculated differently and you can read about the same HERE.
You can book phone consultation/ assistance online with expert as mentioned below:
To book ITR filing with experts CLICK ME.
To book phone consultation with experts for any Income tax related matters CLICK ME.
To book consultation for Faceless Assessment with experts CLICK ME.
To book phone consultation with experts for GST related matters CLICK ME.
To book general phone consultation with expert CLICK ME.
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