How to Declare Capital Gains as Business Income

How to Declare Capital Gains as Business Income

If you trade stocks frequently whether delivery-based or intraday in large volumes, and it’s your main source of income, you can choose to report these gains as business income in your Income Tax Return (ITR).

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Steps to Report Capital Gains as Business Income

  1. Go to File > Business & Profession > Add Business
  2. Select Trading Securities > Intraday and F&O
  3. Enter F&O Details:
    • Gross Revenue: Total sales value
    • Cost of Securities Sold: Total buy value (purchases) + direct expenses
    • Turnover: Sum of the absolute value of each trade under Additional Details
  4. Enter Intraday Details:
    • Gross Revenue: Total sales value
    • Cost of Securities Sold: Total buy value (purchases) + direct expenses
    • Turnover: Sum of the absolute value of each trade under Additional Details
  5. Open Business Details > Nature of Business
  6. Set Category to Trading Securities and Sub-category to Buying and Selling Shares
Mobile

Steps to Report Capital Gains as Business Income

  1. Go to File > Business & Profession > Add Business
  2. Select Trading Securities > Intraday and F&O
  3. Enter F&O Details:
    • Gross Revenue: Total sales value
    • Cost of Securities Sold: Total buy value (purchases) + direct expenses
    • Turnover: Sum of the absolute value of each trade under Additional Details
  4. Enter Intraday Details:
    • Gross Revenue: Total sales value
    • Cost of Securities Sold: Total buy value (purchases) + direct expenses
    • Turnover: Sum of the absolute value of each trade under Additional Details
  5. Open Business Details > Nature of Business
  6. Set Category to Trading Securities and Sub-category to Buying and Selling Shares

Not trading in F&O?

Enter 0 for Sales, Purchases, and Turnover.

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