INCOME TAX RETURN PROCEDURE IN CASE OF PERSON TRADING IN SHARES AS TRADER

[PIYUSH MITTAL]

Sir

I want to know the procedure of income return filling in case of person dealing in shares as trader both in short term,long term & intra day trading. Also whether the assessee has filed ITR under the provisions of Sec 44AD.

[CAGOPALJI AGRAWAL]

The delivery based transactions will be treated as normal sale/purchase while non-delivery transactions profit/loss turnover would be considered ignoring its sign (+) or (-). More detailed study could be had through Guidance Note of ICAI under Section 44AB of the Income Tax Act 1961

[DR.MARIAPPAN GOVINDARAJAN]

Can you please cite the ICAI site menu for downloading this guidance?

AI Summary

Share trading classification: delivery seen as sale/purchase; non delivery intraday turnover reported gross for tax returns. Delivery based share transactions are treated as ordinary sale/purchase and reported in the trading account, while non delivery (including intra day) transactions must have their profit or loss aggregated and reported as gross turnover for return and turnover computation; professional audit guidance is referenced for detailed compliance and reporting requirements.