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Head income

07 April 2023

I filed ITR-4 for coaching class income up to last year. But from current year my client is also start to trade in share market and now he has following income
1 Coaching fees
2 Trading income from share market
3 Long/short-term capital gains from sale of shares.
Previously ITR-4 filed under his coaching class name now how to filed ITR and how to disclose above income.
Let me know which is correct ITR for above. Main income of client is coaching fees but his trading and interest income is more than his coaching class income so what to do please help me.

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14 Replies

Sandeep Jain (Pivate) (1459 Points)
Replied 07 April 2023

ITR 2

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 07 April 2023

ITR 3 will be applicable.

sabyasachi mukherjee (27579 Points)
Replied 07 April 2023

Itr is sufficient.

Mahesh Kapadia (194 Points)
Replied 07 April 2023

Sir let me know head of income under which said income disclose and it is necessary to change name from coaching to trader?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 08 April 2023

Coaching is service and should be declare under PGBP. No need to declare it as trader.

Shares trading be short term or intraday can be declared under PGBP.

While LT/ST shares investment gains should be declared under Capital Gains, including sched. 112A, if needed.

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Mahesh Kapadia (194 Points)
Replied 09 April 2023

OK thank you sir, but let me know income from Intraday is credited to profit and loss A/c of coaching class itself to calculate net profit or require to prepare separately?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 09 April 2023

As such both the businesses are different and financial statements should be separate. Finally they will merge in income head PGBP.

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Mahesh Kapadia (194 Points)
Replied 10 April 2023

Thanks sir it means I have to continue coaching class name in ITR and I have to prepare separately profit and loss account for coaching and trading in shares and finally I have to disclose combine profit figures in ITR same way I have to prepare balance sheet for both separately and combine them for ITR. Am I Right?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 10 April 2023

Yes, You are correct.

Mahesh Kapadia (194 Points)
Replied 10 April 2023

Thank you very much Sir for your quick response

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 10 April 2023

You are welcome.

Mahesh Kapadia (194 Points)
Replied 11 April 2023

Sir if I prepare one profit and loss to calculate net profit (which is credited to my capital account) and then prepare separate statements for both business income ie income from coaching, income (profit) from trading, income from other sources (interest)..... Is it correct way to prepare accounting record?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 12 April 2023

In such case the income from intraday is calculated separately, or is given in statements of the broking firm, so that is directly credited to capital acc, while business income is accounted in usual manner.

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