I have Rs. 7000 in my trading account, and I did intraday trading using BO for two days, and I received SMS from NSE saying I(PAN No.) traded 9 lakhs and 5 lakhs each for two days. So will this high amount effect in anyway? while filing ITR etc? Is it something to panic?
As far as you report the transactions in your Income Tax Return and pay tax (if applicable), there would not be an issue. Also, the source of funds from which you are trading should have been reported as part of income in the current year or previous years.
You can also refer this article for details on Tax Treatment for Intraday Traders.
@Quicko by source of funds, does it mean the margin amount used for trading(7k) from my trading account, or the actual traded value(9 lakhs and 5 lakhs)?
Source of funds is the amount that you have actually invested for trading. Therefore, in case of Intraday Trading source of funds will be the margin amount used for trading.
Thanks for the response!