Is F&O income business income or capital gains?
F&O income is non-speculative business income, not capital gains. It is reported in ITR-3 under 'income from business or profession'. Losses can be set off against other heads except salary, subject to the return being filed on time. Our team reads the broker P&L and classifies each contract.
Do I need to maintain books for share trading?
Business traders should maintain books or at least a trade ledger. If you opt for presumptive taxation under 44AD, detailed books are not required, but you accept the presumptive profit. If you declare lower, books and a tax audit are needed. We advise the right level based on your volume.
What is the tax on intraday trading?
Intraday equity trading is speculative business income, taxed at your slab rates, with losses set off only against other speculative income. The turnover is calculated as the sum of absolute profits and losses on each trade, and the tax audit threshold is tested on the combined business turnover.
Are mutual fund and share dividends taxable for traders?
Dividends are taxable in the shareholder's hands at slab rates and TDS of 10% applies above the threshold. Expenses against dividends are limited to interest up to 20% of the dividend. We separate dividend from business income and claim the TDS credit.
What if my broker's statements do not match AIS?
Differences arise from corporate actions, charges and timing of settlement. We reconcile each broker's statement with AIS and the bank trail, and document the explanation so a mismatch notice can be answered with records already on file.
Can I claim the cost of a trading computer or software?
A business trader can deduct the cost of software, internet and a proportionate share of office expenses against business income, and claim depreciation on the computer. A person with only capital gains cannot. Whether you are a trader or an investor depends on the volume and frequency of your trades; we classify based on your trading pattern.
What is the last date to file an income tax return?
For individuals and HUFs who do not need an audit, the usual due date is 31 July after the financial year ends. Cases needing a tax audit normally get 31 October, and companies with transfer pricing reports 30 November. The government sometimes extends dates, so we confirm the notified date for your year before we start.
What happens if I miss the ITR due date?
You can still file a belated return under section 139(4), generally until 31 December of the assessment year, but with a late fee under section 234F (₹5,000, or ₹1,000 if total income is up to ₹5 lakh) and interest under 234A. Most losses cannot be carried forward in a belated return, which can cost more than the fee itself.
Do I need to e-verify my return after filing?
Yes. A return is treated as filed only after e-verification, which must be completed within 30 days of filing. You can verify with Aadhaar OTP, net banking, a pre-validated bank account or a demat account. We guide you through it and confirm the processed status on the portal afterwards.
