ITR filling if source of income is trading only

Hi Friends, can anyone help me in filing of taxing, if only trading is way of earning here… I am new in trading . so thinking how i should file ITR if only source of income is trading , which form of ITR i should opt for filing… Kindly advise, Thanks

Use @Quicko or Cleartax or contact local CA

Kindly advise if zerodha do help us in filing our return…as I told above I am new in trading and misting do teading in F&O and as like others one had made loss till so far…can zerodha help me in filing in retrun…also plz ans my query, do we need to pay tax on turn over OR only for profit if any made during our trading in F&O…I am in loss so a bit confused if i have to pay tax on my losss as well…

Not zerodha they will provide you only statement, there is certain limit 1cr turnovers you need toa audit you account.

@Quicko can you please help this guy…

Hi @neerajsharma27 @amanmourya

Quicko will be happy to help you with tax-related queries and ITR Filing. Following are the points to keep in mind for Income Tax purpose:

  1. Any Income/loss from trading activities will be covered under the head ‘Income from Business and Profession’ hence ITR-3 is required to be filed by the traders.

  2. Taxes are payable only on Profits earned from trading and not on turnover from trading, hence in your case since you have losses no liability to pay taxes.

  3. Tax audit applicability will be decided based on turnover and profit/loss from trading. You can refer our article for checking tax audit applicability: Tax Audit Applicability in case of Traders

Hope this helps. You can DM us at [email protected] for any further queries. :slightly_smiling_face:


He can also carry forward the losses to the next FY right?
I am not sure, just asking.
I have read somewhere that losses can be carry forwarded for up to 8 years.

Yes. Losses can be carried forward for 8 years and adjusted against the future profits to reduce taxable income. Speculative Loss i.e. loss from Equity Intraday trading) can be carried forward for 4 years.
Imp: Return must be filed within the Due Date to carry forward the loss. In the case of a Belated Return i.e. ITR filed after the Due Date, losses cannot be carried forward.
You can read more about it here - Set Off and Carry Forward Loss under Income Tax Act
For any further help, write to us on [email protected]

Hi @Quicko,
My trading account was opened in July 2019, and since trading is only the source to earn income for me.
Do i need to file the ITR?
I mean… for 2018-19 only the interest in the bank acount is the income which is around 3k-5k only :sweat_smile:
So to file ITR next year… do i need to file the itr for the current year as well?
just wanted to know bcoz I dont want my pan card to be flagged current year for not filing…

I don’t think so, as your trading income/loss is in the FY2019-20, also you can’t file ITR for 2018-19 now. 31st March 2020 was the last date for filing ITR with penalty, but seems you not need to file the ITR for 2018-19.

Since you do not have any income in FY 2018-19, you are not liable to file Income Tax Return. You can report the trading activity and file ITR for FY 2019-20. Make sure you file ITR for FY 2019-20 before the Due Date so that you can claim and carry forward the business loss if any.
Your PAN can be flagged for multiple reasons such as reporting of significant transactions on your PAN, cash deposit of more than Rs. 10 lacs in FY, purchase of immovable property etc. If it is flagged, you can submit a response on the e-compliance portal stating that you were not liable to file ITR.
For any further help, write to us on [email protected]

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Due Date to file Belated ITR or Revised ITR for FY 2018-19 has been extended to 30th June 2020 due to the COVID-19 Pandemic.

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