Some confusion regarding tax filing ( ITR 3 )

i’m a new full-time trader & investor . trading in f & o , equity . filing itr 3 for the very first time . my sources of income include :

  1. bank interest
  2. trading ( f & o, equities , capital gain)

my queries :

  1. in part A - balance sheet section in itr 3 : should i include all my personal assets or just show assets related to trading activity ?

  2. in part a - profit & loss account of itr should i include bank interest in interest income & separate it in schedule bp of ITR & also show in schedule OS for other income ?

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  1. Ideally all assets, so that you have just one balance sheet. It is not compulsory to have personal asset unless your income is more than 50lks
  2. Bank interest should be shown as other sources.

thanks nithin :slight_smile:

@nithin one more confusion > regarding section 44AD ( audit case ) > profit less than 6 % of turnover :

= total business income ( speculative + non-speculative - expenses ( brokerage + telephone/internet + rental+ depreciation etc etc ) ??


its just gross profit total business income ( speculative + non-speculative ) without any charges or expenses ??

Yes, net profit should be more than 6% of the turnover.

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Its Net profit … after all expenses should be more than 6% of Turnover for not to have Audit.

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@Ca_Omprakash_Jain : so it makes sense not to include expenses if profit is hovering around 6 % . thereby making profit cross over 6 % :slight_smile: @nithin

Arvind important here is when we can calculate exact amount or profit or loss … why we go for presumptive. As per IT database they get turnover on the basis of STT where same will be in crores … you can take the benefit of all expenses but you don’t want take the same in computation … there won’t be issue as you will be more taxes then payable .

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@nithin: where to mention money in trading account in ITR3…can i mention it as Sundry Debtors in BS part?

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Yes, you will have to show it under Sundry Debtors only.


thanx :slight_smile:

how is tht sundry debtors ? i means its its as liquid as cash shouldn’t it be mentioned as cash in hands or balance with banks ? besides tht sundry debtors there is chance of default which is not case here :confused:

Stock Brokers are not banks! So it cannot be considered as balance with the banks nor its the cash balance in your hands. Hence its best to show it under Sundry Debtors, as this is the amount receivable by you from the Stock Broker.


thanx :slight_smile:

i have included it in “other current assets” :slight_smile:

@Ca_Omprakash_Jain What if I end up in loss, i.e <6%, still audit is required ?

audit is not required if total income is below 2.5 lakhs threshold limit ( as per my understanding ) :sweat_smile: . if above 2.5 lakhs then required

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can itr3 form be filled online via cleartax site, if total income below 2.5lakhs