How to shift from ITR 3 to ITR 2 in future?

This year I have made around 1.8k short term gains and one intraday transaction with a loss of Rs 7.95.Suppose this year I file ITR-3 with the intraday loss under Business Income head and Short Term gains under Capital gains head. Since I have intraday loss, I might have to do audit as well. But now suppose in the next year, I dont do any Intraday transaction and stick to short term/ long term gains, then I dont have any business income since I havent done any intraday trading and I will be reporting short term/ long term gains under Capital gains head.Then can I file ITR 2 in the next year since I wont have business income?Or will I have to stick to ITR 3?Basically what do I need to do now so that I can shift to ITR 2 in future?

@nithin Can you please help?

@Quicko can u please help.

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ITR Applicability is Based on Income of that Year, if you are not having Business Income no need to file ITR 3, you can go back to ITR 2.

Btw, if you are a partner in any partnership, you have to mandatorily file using ITR3.


Thanks a lot. I have no partnership, just a regular salaried guy who made one intraday trade mistakenly. I have only one doubt- since I will be filing ITR 3 this year and declaring my loss, it will get carried forward to the next year. And if in the next year I file using ITR 2, then how will this carried over loss get reflected in it?

Hi @Sap_452

Yes, you will be able to file ITR 2 in the future.

Every year, one is required to file his return (ITR form number) according to the income sources of that particular financial year.

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Thanks a lot. So Even if I get audited for declaring intraday loss by filing ITR 3 this year, I will be able to file ITR 2 if I have salary and short term/long term capital gains but no business income for the next year right? In such a case what happens to the intraday loss that is carried forward? Does it get reflected in the ITR 2 next year?

Hi @Sap_452

Yes, you can file ITR 2 if you are eligible (assuming you have income from salary, other sources & capital gains & no business income) for the same next year.

If you have a brought forward intraday loss (i.e. speculative business loss), you can set off only against speculative business profits or carry forward the intraday loss for 4 years (only if you file the return within 31st July, if an audit is not applicable) next year while you file ITR 2.

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