How to file return for the following





These are my equity trading numbers. Now I wish to file returns and I want to declare my short term gross profit as investment. Can I do this - declare my short term profit as investment and intra day profit as business income. How to go about doing this? Do I need to file separate ITRs or a single ITR will do? Also I haven’t paid any advance tax. Do I need to pay some penalty for that? How to calculate the penalty?

You can not show your short term profit as an investment. It is either capital gain or business income…

If you show it as a capital gain then you have to pay 15% of profit as an tax i.e approx rs 2319…

in my view show both intraday and short term profit as a business income. If you do so then you dont have to pay any taxes as your income is below slab rate i.e Rs 250000.

You need to file only ITR-4 in order to show your profit as a business income.

no need to pay advance tax as your income is below slab rate…

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Hi Sooraj,
Thanks for your reply. I am a salaried professional too.
I though we can declare ourselves as both investor and trader? Anyways do I need to file ITR1 and ITR4 both? If I file ITR4 would I require to get my books audited because my profit/turnover is less than 8%?

Yes you can declare yourself as a investor and trader at the same time while you are salaried employee.
In order to show your holdings as an investment, your holding period should be more than 1 year or your intension to hold should be more than a year…
If you sell your holdings within a year then it cannot be treated as investment.
just file ITR 4. It includes column for income from salary and business as well… no need to file ITR 1 separately…
besides you need not go for audit as your Turnover for the year is less than 1 crore which is Turnover limit to conduct audit prescribed by the Income Tax Department…