20 August 2020
Someone guide me through following :
1. Where to enter the income on shares when "STT is NOT PAID" 2. Which ITR to be filled if i have SPECULATIVE LOSS (i.e. loss from intraday trading) from shares. Should it be treated as businees loss and to be shown under BP schedule in ITR...
21 November 2020
B 10 a(ii) is related to Long term Capital Gains. In my case, it is STCG on which STT is not paid. So, where to enter in ITR-3. Also, will it be any problem if, I wish not to show the intraday tradeing loss (speculative loss) in ITR other than carry forward of same.
22 November 2020
Thanks for your reply.. Also, resident assesse has sold the shares which he got them from ESOP of foreign company from which he incurred Short term capital losses. where to show in Capital Gain schedule of ITR?
02 August 2024
Here's a guide to handling the various scenarios you described in terms of filing income tax returns (ITR) and reporting different types of income and losses related to shares and trading:
### 1. Income from Shares When STT is Not Paid
- **Listed Shares without STT:** If you have income from trading in listed shares where Securities Transaction Tax (STT) is not paid, you need to report this as **Short-Term Capital Gains (STCG)** or **Long-Term Capital Gains (LTCG)** based on the holding period of the shares.
- **Reporting in ITR-3:** - **STCG (STT Not Paid):** In ITR-3, report this under **Schedule CG** (Capital Gains). Specifically, you should fill out: - **Part B - Details of Short-Term Capital Gains (not covered under section 111A).** - Enter details of the shares sold, the cost of acquisition, sale consideration, and the resultant gain.
### 2. Speculative Loss (Intraday Trading Loss)
- **Treatment of Speculative Loss:** - **ITR to File:** Speculative losses (like those from intraday trading) should be reported in **ITR-3**. They are considered **Business Losses**. - **Schedule to Use:** Enter speculative loss in **Schedule BP** (Business Profits). In ITR-3, you would typically: - Fill out the **Part B - Profit and Loss Account** to detail the business income and expenses. - Report speculative loss under the **Part A - Trading Account**.
- **Carry Forward:** If you choose not to report speculative losses, it could lead to complications in future years if you wish to carry forward these losses. Losses from speculative business can only be carried forward if they are reported in the ITR for the relevant year.
### 3. ESOPs from Foreign Companies
- **Short-Term Capital Gains from ESOPs:** - **Reporting in ITR-3:** - **Schedule CG** (Capital Gains) should be used to report capital gains from shares acquired through ESOPs. Enter: - **Short-Term Capital Gains (STCG)** if the holding period is less than 36 months. - Provide details of the ESOP shares, including the acquisition cost and sale price. - Enter the gains or losses in **Part B - Details of Short-Term Capital Gains**.
### Additional Notes:
- **ITR Form Selection:** - **ITR-1** is typically used for individuals with salary, interest, or rental income and cannot be used for business income, speculative loss, or capital gains reporting. - **ITR-3** is suitable for individuals with business income, including speculative and non-speculative losses, and capital gains from shares.
- **Importance of Accurate Reporting:** - Ensure all incomes and losses are accurately reported to avoid issues with the Income Tax Department. Misreporting can lead to notices or complications in future tax filings.
- **Filing Revised Returns:** - If errors are found after filing the return, you can file a revised return within the specified time frame to correct any inaccuracies.
If you have specific scenarios or further complexities, consulting a tax professional or chartered accountant is advisable to ensure compliance and accurate reporting in line with the latest tax regulations.
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