intraday trading

Question BankCategory: Income Taxintraday trading
Surbhi asked 4 weeks ago

Will you please let me know the following thing
In case of intraday trading , What is
1. Gross receipt
2. gross profit
while we filing Income tax return (no account case)

4 Answers
Rahul answered 3 weeks ago

Gross receipts is turnover and gross profit is 6% of your turnover if you adopt presumptive taxation
Turnover is total of plus & minus figures in Future trading…in case of options value of premium received in your turnover..

Ekta Thakur answered 3 weeks ago

Dear Surbhi,
These detail is to be filled in when you are not liable to maintain books of accounts u/s 44AA.
Gross Receipts is Turnover. To understand how to calculate turnover in case of Speculation, future & options, Read here.
Gross profit is the income calculated as sec 44AD (6% of turnover) Read full
Exp. is exp. allowed as deduction. If you are adopting presumptive taxation then it is nil as no further exp is allowed after 44AD. but in case ITR was to be filed without adopting presumptive taxation then allowed exp.(like brokerage, transaction charges, demat charges) could be filled in this column . Hence this exp. cell is given here.

Surbhi answered 3 weeks ago

To Rahul and Ekta
What is a  gross receipt and  gross profit in case of intraday trading if we are not opting presumptive taxation ?
Can gross receipt be a negative?
(No account case)

Ekta Thakur answered 2 weeks ago

To Surbhi,
You need to fill these detail only if you are not liable to maintain books of accounts…If you are liable to maintain books accounts or liable to audit then…these detail is not required but you need to fill other complete detail of income & exp….these detail is required to be filled only in case:-

  1. If you are opting for presumptive taxation and not liable to maintain books of accounts .
  2. If you are not opting for presumptive taxation but still not liable to maintain books of accounts.

You fall under point two above…As explained earlier Gross receipts is Turnover…and Gross Profit is your trading profit…but this can not be negative as if you declare profit less than 6%/8% of turnover then you need to go for audit…in this case you need to fill complete detail of audit and these three column are not applicable.
Gross receipts can not be negative because If you did only single trading transaction then there must of some turnover…But you need to understand meaning of Turnover for this purpose….
For example:-

  1. One call option purchased for Rs. 5 lot size is 2000 and sold for Rs. 6 being lot size 2000 then turnover is sale value being 12000/-
  2. But if one future lot size 2000 is purchased for Rs. 100 value being 200000/- and sold for Rs. 110 being value Rs. 220000/- profit is 20000/- then your profit is your Turnover i.e  Rs. 20000/-. But if sold for Rs. 80 value being 160000/- being loss of Rs. 40000/- in this case your loss is your turnover i.e Rs. 40000/- turnover can not be negative…all profit & loss figures are added together…..for example if both of above transactions are done by a trader …then his turnover is Rs. 20000 + 40000 = Rs. 60000/-
  3. If intra day trading is done in equity..if …1000 shares purchased @ 50 and sold @ 40…Then loss of Rs. 10000/- is your turnover…

To read more about it click below:-

How to File Income Tax Return for F&O Trading and Speculative transactions in FY 2017-18 (AY 2018-19)


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