Which ITR to be filed

Taxation
1

Dear seniors,
We have doubts about which ITR should be filed in the below circumstances. My friend resigned his job last year February (he worked in the education sector). So now he is a full-time trader on EQ and F&O (only options).

  1. No salary income
  2. TDS detected by university for some remuneration (₹180) in the financial year of 22-23 (This was found in 26AS)
  3. Bank FD interest around 50,000 per annum (Form15G submitted)
  4. As per Zerodha Tax P&L report of 22-23 he has following Realized P&L details,
    a. Options Profit : ₹ -7,943 (loss)
    b. Intraday/Speculative Profit: ₹ 11696
    c. Short Term Profit : ₹ 39783
    d. Long-term Profit : ₹ 1144
  5. Stock Dividends : ₹ 5,072.

We would like to know from you all which ITR should be filled out for the above situations. We tried to click Quicko from Z-Console, but it’s asking for salary details, which are not relevant in our case. So he is about to file under ITR-1 where his TDS detection is reflecting as pre-filled (IT official web), but he has no idea where to enter his trading P&L’s. So please help us.
@ShubhS9

2

@Quicko can you assist please.

3

Hi @saimoorthi

Considering all the facts stated above since you’re trading in FnO & Intraday, you will be required to file ITR 3, as both of them are considered speculative and non-speculative business income.

ITR 3 is applicable when you report: Business income, along with incomes from salary/pension, multiple house property, capital gains, and IFOS.
Even if you don’t have salary income, ITR 3 will be applicable as you’ve FnO & Intraday income.

Here’s a read on Which ITR Form Number to Fill? - Learn by Quicko for your reference.

If he resigned from his job in Feb 2022, he should have reported this income while filing his return for FY 2021-22/AY 2022-23 (i.e., last year).
The TDS reflected in form 26AS would be for the previous year. If you’re entering the TDS details, you’re required to also enter the source of income. For this discrepancy on Quicko, please Submit a ticket : Help Center and our team will assist you.

However, here’s you can continue to Import Trades from Zerodha : Help Center on Quicko and proceed to Prepare your Income Tax Return : Help Center.

Hope this helps.

2 Likes
4

What code to use for intraday profit/loss in ITR3 for an individual and not a business concern.

5

Don’t think anyone knows for certain. Quicko advises 09028, but have also seen other CAs going for 13018/13010. Varsity says 13018/13010…

In fact, Quicko themselves have gone for 13010/13018 here,

but now, they go for 09028…

6

Hi @Venmathi @SachinSingh

For an individual engaging in intraday trading, the appropriate code to use for calculating profit or loss in the Income Tax Return is 09028. This code is specifically meant for reporting income from business & profession.

While there are alternative codes such as 13018 or 13010, which pertain to investment activities, it is generally advisable to use code 09028 for intraday trading. This is because it is considered to be more aligned with business income rather than investment income.

1 Like
7

@Quicko what is the last date to file ITR 2023 ?

8

Hi @Dhinesh_Muthusamy

The due date to file ITR for individuals for AY 2023-24 is July 31st, 2023. In case an audit is applicable the due date is October 31st, 2023.

1 Like
9

ITR 3 should be filed

10

Thank you Team. He successfully filed last month. And today he got an email of ITR intimation for refund. So he logged in IT portal, in that it’s showing Refund awaited: ₹xyz*. He confused why * (Asterisk) on it. I asked my friends who’s filing regularly they said nothing to worry. @Quicko Is it normal ?

11

Hi @saimoorthi

Yes, that is absolutely fine. Need not worry.

1 Like
12

Thank you so much. Today morning he received his refund. Thank you once again :smiling_face:

1 Like