Which ITR to file if working in IT company and doing trading as well

Taxation
1

Hi,

I got notice from Income tax department that i filed wrong ITR (i filed itr 4)

  1. I am in IT company so having a monthly salary package.

  2. I did intraday, short term delivery and FNO as well and have a loss of 30K in Intraday speculative in assessment year 2019-2020

Which ITR i need to file?
And in which section i need to fill loss 30k.

Attached notice is saying i need to file itr 2 but zerodha varsity is saying need to file itr 3.

Screenshot_20191127-163738~2
Screenshot_20191127-163738~21080×400 129 KB

2

@Quicko

3

Hi @SureshK,

ITR 4 is usually required to be filed in case of presumptive business.

Since, Intraday and FNO are treated as a business activity - you are required to file ITR 3.
You can report your

  • Salary Income under the head Salary
  • Short Term Delivery based trades under Capital Gains
  • Intraday and FNO income under the head Business & Profession

Prepare financial statements i.e. Balance Sheet and P&L statement indicating loss under business income.
You also need to check for the applicability of the Tax Audit based on turnover to claim the losses.

Hope this helps! In case of any query feel free to contact us on [email protected].

1 Like
4

Thanks man :ok_hand::ok_hand:

5

Do you provide service to file ITR and tax audit?

6

Hi @amanmourya,

Yes, @Quicko can help you with all your tax needs.
We at Quicko are on a mission to simplify taxes for all!

You can either drop us a message requesting a callback or write to us on [email protected].

1 Like