How to declare trading as a main source of income

Not a salaried individual so dependent on Trading. Swing Trading of stocks specifically. So want to declare it as my legal business and primary source of income. So how to do it and what documentation and other things required for the process?
And plz help with taxation details as well for swing trading.

@Quicko

Hi @shiiromani,

Income or loss from Swing Trading will be taxable under the head Income From Business and Profession. You need to prepare and maintain books of accounts for your trading activities. You can claim all the trading related expenses while preparing your books of accounts. Hence keep the invoices and supporting of all the expenses with you. For example, keep the invoices of fees paid to an advisor, software purchased for trading analysis, online subscriptions paid etc.

ITR-3 needs to be filed. And following is our article on Documents required for ITR Filing:

Documents Checklist for Trading Income

Hope this helps! For any further questions feel free to connect with us at Quicko, we’ll be happy to help!

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Hi @vishalkhemchandani,

For Income Tax purpose you need to consider the turnover calculated in your Tax P&L Statement. If the total turnover from Intraday and commodities is more than 1 Cr. then tax audit is applicable. Also Tax Audit will be applicable if there are substantial losses and you wish to carry it forward.

Hope this helps! For any further questions feel free to connect with us at Quicko, we’ll be happy to help!

Hi @vishalkhemchandani,

@Quicko sir what are dates to file the ITR?? and how many times an individual need to file an ITR??

@shiiromani Seem you are not aware of basic of ITR, I must tell consult with your local CA it would not cost you much(Don’t ever contact to any ONLINE consultancy rather go and find out charges to file return at your locality - tax consultant CA). Here you will get much more dought and fear about ITR as your Q? shows you havenot filed any ITR till date.
HAVE peacefull life to concentrate on your trading.
:slight_smile:

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Hi @shiiromani,

You only need to file ITR Once after the end of the financial year. And the due dates are as follows:

For FY 2019-20:

  1. 31st July 2020 for Taxpayers to whom Tax Audit is not applicable,
  2. 30th September 2020 for Taxpayers to whom Tax Audit is applicable.

Hope this helps. Quicko can help you with all your tax filing needs. We at Quicko are on a mission to simplify taxes for all! You can either drop us a message requesting a callback or write to us on help@quicko.com.We are on a mission to simplify taxes for all! :slight_smile:

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yaa brother… never filed ITR before, just recently started earning brother… and dont want any hassle in future regarding taxation so I thought it is better to question all the basics required from more experienced individuals…

Thnku Quicko… and sure I’ll contact your team. Actually I already have my account on your platform and liked the UI. :slightly_smiling_face:

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