Ltcg vs business income for trading as SOLE income source

Taxation
1

past years quicko used to auto fill LTCG trades into business income. (basic plan)

but this year only intra-D trades get auto filled under business income while LTCG trades get auto filled only in capital gains section

am i missing anything or do i need to upgrade to Essential plan ?

Last question : initial connecting-pulling/verifying via Aadhaar vs IT Dept ; any difference ? (maybe verifying via ITD is better!)

1 Like
2

@Quicko Can you.

1 Like
3

Very disappointed that with Zerodha recommending Quicko yet Business Income is not getting auto inputted for simplicity and ease of access.

Anyone can help me where to find the info from Zerodha Console /downloads etc as it asking for following things :

Gross Revenue : Total Sales , Other Incomes

Cost of Goods Sold : Opening Stock, Total Purchases, Closing Stock, Direct Expenses

Gross P&L

Indirect Income

4

Hello @chacha

Income from STCG and LTCG is taxed under the head Capital Gains. Intraday trade which you bought and sold on same day in taxed under the head Business Income as Speculative business income.

There is no requirement to upgrade to any plan to treat LTCG as Business Income.

If you are a frequent trader and want to report STCG and LTCG as business income and not as Capital Gains in Income tax return, you have 2 options as below:

Option 1 : DIY
a… Do not import data in CG. If already imported delete it.
b. Add the business income manually calculating opening stock, closing stock and purchases and sales.

Option 2: Expert assisted MEET
Here, the tax expert can help you fill all the information and report LTCG as Business income.

Hope, this helps!

1 Like
5

Thanks a lot for the reply.
Hoping your team will give it a thought:

  1. Prelim questions to tax payer to choose between CG vs BI
  2. Auto populating the info into BI section just as you do with CG section.

Again, its easier said than done, and must be valid reason why quicko doesn’t have that

Yet, in this age of AI & Automation that could nice for us tax payers who are eligible for DIY tax filing.

6

@chacha Have you ever faced any issues withthe Income Tax department for filing capital gains as business income?
I am planning to file my STCG as business income this time and LTCG as capital gains. My sole income is capital gains and dividends only from the past 5 years.

1 Like
7

as per my understanding ;

  1. intention of taxpayer matters (https://youtu.be/IOXjhR2FX00)

  2. Once you choose one, they say you have to stick to it ( cg → bi → cg; back & forth is not advised )

2 Likes