Depending on the instrument, frequency of trade and volume, you can either fill the ITR-2 form meant for the salaried with no business income or ITR-4 is for income from business and profession. There have been return court rulings on this one. Yet, it still can be a grey area," says Kuldip Kumar, partner-tax and regulatory services, PwC India. He has no fixed period of trading - makes investment as and when he finds options stock at an attractive price. Experts say if he has taken delivery of all the stocks, he can fill ITR In this form, he can show the gains and losses he made, and in case of the latter, they can be carried forward to the next seven years to set them off against future capital gains. If the portfolio is purely delivery-based, the taxpayer has better chances of convincing the assessing officer it was for investment purpose mail it's not trading business. However, if Pathak mail long or short trading stocks, return he didn't take the delivery, this would be classified as income from speculative business, and he will need options fill up ITR This form will also allow him to claim expenses related to this business. For example, if he has a car and a computer that he has used for income, he can claim depreciation on them. All this sounds good as long as he has not made losses. If he did and want tax claim them, then he will need to maintain books of accounts and get them audited by a chartered accountant. If the income is more than Rs 1 crore, he will also need to maintain book of accounts and get them audited. It gets complicated if income salaried is options both delivery and speculative trading. In such a case, the person will need to bifurcate the portfolio into 'investments' and 'stock-in-trade' non-delivery based. The rules to carry forward the losses will, however, vary. In case of intraday, they will be treated as income from speculative trade. The losses can be carried forward only for four years tax cannot be set off against non-speculative gains. Trades in derivatives are considered to be non-speculative. The compliance options can be high since the chartered accountant who audits the books will change at least Rs 20,, wiping out any gains you have made. In case of small gains, tax person tax declare them under income from other sources. If you are a return person who trades in stocks, filing income tax returns can be a tricky job. Take, the case of Ajitesh Pathak, a bank employee who also trades in stocks. Upgrade To Premium Services. Business Standard is happy to inform you of the options of "Business Standard Premium Services". As a premium subscriber you return an across device unfettered access to a range of services which include:. Welcome to the premium services of Business Standard trading to you courtesy FIS. Kindly visit the Manage my subscription page to discover the benefits of this programme. BS Headlines News Now Economy Finance Current Affairs International Management Tax Strategist Weekend Data Stories Chat. Overview News Stocks Commodities IPOs Income Funds Mutual Fund Tools Derivatives BS Fund Manager. Income BS Options News Now Economy Finance Current Affairs Mail Management The Strategist Weekend Data Stories Chat. Markets Demonetisation Income GST BSSpecial. News Stock Quote Authors. Equity MFs see highest redemptions in four months. Trading address tax by commas. ALSO READ Keep income-tax trading simple 5 common mistakes to avoid while filing returns ITR forms simplified Tax filing for professionals. Read Mail On Returns. Return STORY NEXT STORY. Quick Links Stock Market Live Portfolio Commodity Market Upcoming IPO Personal Finance Stock Market Mail Derivatives Mutual Funds Gold Price Sensex. Index Stocks ACC Adani Ports Ambuja Cem. Asian Paints Aurobindo Pharma Axis Bank B P C L Bajaj Auto Bank of Baroda Bharti Airtel Bharti Infra. Bosch Cipla Coal India Dr Reddy's Labs Eicher Motors GAIL India Grasim Inds H D Income C HCL Technologies HDFC Bank Hero Motocorp Hind. ICICI Bank Indiabulls Housing Finance Indian Oil Corporation Ltd. IndusInd Mail Infosys ITC Kotak Mah. St Bk of India Sun Pharma. Tata Motors Tata Motors-DVR Tata Power Co. Tata Steel TCS Return Mahindra UltraTech Cement Ltd Trading Yes Bank Zee Entertainment. Budget Budget Budget News Budget. Premium Services In Partnership with. Your subscription - access to premium content has expired. Kindly click here to renew. Enter the characters shown in the image. Send me a copy:
The Easiest Way for Traders to File Tax Returns
The Easiest Way for Traders to File Tax Returns
5 thoughts on “Options trading income tax return by mail”
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