Intraday trading - File ITR 3 ? TaxAudit?
This query is : Resolved
13 December 2020
Hi,
I am a salaried person and have total income above 5 lac.
I did some intraday trading and had
Intraday Profit - Rs.11
Intraday Turnover - Rs. 3010
As per some articles that I read on cleartax, quicko etc.,
It seems like I should file ITR 3 and since, my Intraday profit is less than 6% of turnover - I am liable for tax audit.
I wanted to confirm regarding the same.
Is it fine to consider it as SCTG and file ITR 2/3 so that I don't have to get tax audit done?
I am a salaried person and have total income above 5 lac.
I did some intraday trading and had
Intraday Profit - Rs.11
Intraday Turnover - Rs. 3010
As per some articles that I read on cleartax, quicko etc.,
It seems like I should file ITR 3 and since, my Intraday profit is less than 6% of turnover - I am liable for tax audit.
I wanted to confirm regarding the same.
Is it fine to consider it as SCTG and file ITR 2/3 so that I don't have to get tax audit done?
14 December 2020
File ITR 3 it's speculative transaction tax audit not applicable for this amount.
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14 December 2020
Thank you very much sir for the advice.
One follow up question - While filing ITR3, do I have to put this transaction as Business Income. And what about maintaining Book of Accounts?
One follow up question - While filing ITR3, do I have to put this transaction as Business Income. And what about maintaining Book of Accounts?
15 December 2020
Yes, show it under business income. Books of accounts not required for this small amount.
15 December 2020
Yes you can file your IT return without tax audit because your turnover is less than the tax audit limit.
16 December 2020
Hi CA R SEETHARAMAN & Spurto Consultancy,
Thanks for the advice but I found a different opinion on some other articles.
As per that, if I use 44AD and file ITR 4, then I have to show a minimum of 6% of turnover as profit.
Otherwise, I will be required to do tax audit.
If I don't use 44AD and file ITR3, I have to show it as normal income and maintain book of accounts and also do tax audit.
Let me know if that's true.
Thanks for the advice but I found a different opinion on some other articles.
As per that, if I use 44AD and file ITR 4, then I have to show a minimum of 6% of turnover as profit.
Otherwise, I will be required to do tax audit.
If I don't use 44AD and file ITR3, I have to show it as normal income and maintain book of accounts and also do tax audit.
Let me know if that's true.
16 December 2020
Intra day trading is speculative business so 44AD not applicable.
28 October 2021
I beg to differ, though speculative business, intraday business is eligible for presumptive assessment u/s. 44AD, provided other criteria are satisfied.
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