Hi Guys,
My little cousin is investing in stocks. By mistake for one order of his he selected as intraday instead of cnc in last FY. Now his ais, tis shows details about his capital loss but not about this intraday entry. The broker’s report shows this
His total taxable income is nil. Can he file ITR 2 or will there be any issues because of this?
IMO, If you file ITR-2 and skip the small intraday trade, it will likely go through since income is nil and AIS/TIS didn’t capture it. But it’s technically wrong, as intraday is business income and should be shown in ITR-3. So, ITR-2 is easier but risky, while ITR-3 is correct and safe.
For ITR-3 he will need to maintain books of account and everything?
Hi @nithin_kumrr, @tax007, @niftymonk,
You can correct the mistake by changing the buy and sell dates for that transaction and report it as short-term capital gains. Show the difference for a day between the buy and sell date. Then manually add the details in ITR-2 when filing. Since there are no other issues with the income, there shouldn’t be any problem.
Thank you!
So in case we can show intraday income as STCG for ease if we want?
There won’t be any issues by ITD?
Please clarify it
Hello @Kumar_Thakkar
We do not recommend to show Intraday income as STCG since the same is being reflected as intraday in your AIS (Annual information statement)
We would recommend to report it under business income as speculative business income and file ITR 3.
Thank you.
No , it’s not in AIS
Dear Sir,
Few points, There is no STCG but a loss instead. Requesting you to please check the screenshot in the main post again. And that one entry is of intraday, will it be ok to add it manually in the ITR-2? This entry is not showing in AIS.
Tagging @Kumar_Thakkar and @nithin_kumrr