On quicko, I cannot find any option where gains or losses from sale of equity (long and short term) can be shown as business income instead of capital gains.
Under the business and profession tab, afer adding a broker name, after clicking on it and going to the income tab, this heading is given: Futures & Options Income Income generated from trading contracts of stocks, metals, currencies, commodities, etc.
It doesnt say here that I can enter long and short term gains from equity here. Where should I enter it. If possible pls make a video. @Quicko
By default, short and long term gains/losses on any platform like quicko, cleartax etc are considered as capital gains and are thus auto populated in that tab. However, one has a choice to show these gains/losses as business income which comes with certain benefits in certain situations. Only thing is once a sale from equity short and long term is reported as business income, it has to be reported as business income in the future years as well.
Thanks for this. So I had filed ITR-3 Last year as well which makes me think I would have picked it up as business income instead of CG. If that be the case, do I have to remove all the data from CG section of Quicko and manually enter in Business and profession section ?
Reporting settlements (trades) as CG or Business Income depends on the intent of the taxpayer. If the trade was undertaken with the intent of long term investment for capital appreciation and not earning short-term profit out of it then it has to be reported as CG and not Business Income and vice-versa. The ITD also recommends following the same reporting for the following years once you report CG as Business Income.
We do not auto-fetch capital gains data as business income, however, if you want, you can disclose the business income manually.