Pl suggest whether ITR2 or ITR4 and Audit requirement.

Salaried Individual  = 4.6 lacs

Intraday shares Profit= 4500   (on Turnover  0.1  Crore)

Delivery trades loss (short term loss)= -4700   ( on Turnover 1.3 Crore) ;  High frequency trades ( about 350 transactions/year, inclusive of both Purchase and Sale on regular basis).

Bank interest just around 10 thousand.

Not traded in F&O .

I had filed ITR2 in previous years.

I have not maintained any Books of Accounts other than  PnL / Ledger Statement from Broker.



1.  How do I classify myself…..  Investor  or Trader (Business) ?

2. Can I file  in ITR2   with STCG….  if YES….  how to show Intraday Profit in ITR2.

3. If not ITR2,  can I file in ITR4  without AUDIT?
( because my Intraday Turnover is < 1 Cr and Profit is > 8%  as mentioned above)  and  Turnover does not matter in case of  Capital Gains from Delivery trades.

I am really not a full time trader, but high frequency trades happened due to Online facility and Android phone, all these transactions were done during after market hours at night  /  market hours at work.

Pertinent solutions in this regard would be greatly appreciated and thanks in advance.


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1 Answer(s)

Intraday trades come under speculative business and when you come under business head ( Speculative or non speculative) you should use either ITR 4 or 4S.  Classification of self into investor and a trader can be on basos of your past practise to classify yourself , your time devotion on activity , volumes of trades , continuity and consistency with which you follow these all principles. If you are involved in to HFT traders then our advise will be to classify yourself as trader .


TaxIQ Answered on July 11, 2015.
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