Salary and Day Trading -Holding of Shares as Investment

Q & A ForumCategory: InvestmentsSalary and Day Trading -Holding of Shares as Investment
Digvijay asked 6 years ago
Hi Sreekanth, Hope you are doing well, Need a help please 1.I am a salaried employee and till last year I was filing ITR-1 2.From Last year (01Apr 2019) i was doing intraday and also positional/ investment in stocks options/futures,And there was only net loss from these activities 3.Also had a investment in captial bonds in sec 54E for a lock in period of 5 years which is tax free (as there was a old flat which was sold and invested a part of that in capital bonds) rest of the amount is invested in Mutual Funds and some in FDs 4.Now as all these needs to be shown up while filing returs, my auditor wants to file ITR3 along with computation of P&L and BS- ( I dont haveany INCOME from BP) Can you please help and advise if this is the correct and i should be filing ITR3 instead of ITR1 Thanks in advance Cheers Digvijay
1 Answers
Sreekanth Staff answered 6 years ago
Dear Digvijay, As you have Capital Gains/Losses, ITR-1 can't be filed. If you are a salaried individual and made gains or losses from intraday trading (Speculation), you must file your return in ITR form 3 . Related article : AY 2020-21 Income Tax Return Filing Tips | Which ITR Form should you file?  
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