Your Queries – Income Tax: Gains from share trading taxed under business profit, file ITR 3/4

By Fe Online7 days ago

Separate disclosure of each source of income shall have to be made in the ITR Form, whether or not you choose to be governed by the new regime of taxation.

non-resident is required to file an Income Tax Return only if his total income, from all sources (after giving effect to exemption in respect of income from NRE account) exceeds maximum amount not chargeable to tax (i.e. Rs 2.5 lakh).

By Chirag Nangia


I am a student and do trading in shares and have earned short term gains. I also have income from bank interest and dividends. Which ITR should I file?


Since you have been trading in shares, the resultant income must be offered to tax under head profits and gains from business and profession in ITR Form 3, for assessment year 2021-22. Alternatively, if turnover from share trading is less than `2 crore, then income may be offered to tax on presumptive basis, at the rate of 6% of turnover (or 8% of turnover, if electronic clearing system is not used). In this case, a simpler form- ITR 4, may be used. Interest income and dividend income shall have to be disclosed in Schedule OS, (i.e. income from other sources) in the respective ITR Form.

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