A Quick Guide on Filing ITR for Trading in the Stock Market

Computing income from trading and filing tax returns can sometimes be tricky and intimidating. And this is most commonly witnessed when you have various other income sources.

Now that you are here, this share trading tax guide will unveil everything you need to know regarding tax filing. 

Step-by-Step Guide on Filing Income Tax Return for Stock Market Transactions

It is recommended to file your Income Tax Returns within the stipulated time. And failing to do this will make you pay a considerably hefty penalty or fine. However, those taxpayers whose account doesn’t require auditing must file their ITR by the 31st of July every year.

So, as a responsible citizen, it’s important to file your ITR on time and pay your taxes. And if you are wondering how to proceed with the same, we’ve provided you with a quick step-by-step guide:

  • Step 1:

Firstly, you need to log in to the portal of Income Tax and click on the “File Now” option in the dashboard.

  • Step 2:

Next, you must choose the appropriate assessment year to file your taxes for the respective financial year.

  • Step 3:

After that, you need to select an online mode for tax filing and check on the status as “Individual.”

  • Step 4:

Next, you must select the relevant ITR form for your stock market investments.

  • Step 5:

In the following step, you must select the option “Taxable Income is more than the basic exemption limit”.

  • Step 6:

After this, you will have to deal with 19 schedules while filing your returns for income tax. 

  • Step 7:

Make sure you check the option “No” when you are asked whether you are opting for the new regime or not. This will enable you to claim a deduction under Section 80C, Chapter VI-A, House Rent Allowance, etc.

  • Step 8:

Next, you must answer the questions required in the Deduction Section of the Salary Schedule. Also, you need to complete the general section and select the appropriate residential status and condition.

  • Step 9:

Provide all the relevant details for Salary Schedule and Part A and proceed to confirm.

  • Step 10:

Next, select the desired options in the Schedule Capital Gains.

  • Step 11:

After that, you must fill in every detail of the short-term capital gains and other requisite information.

  • Step 12:

Proceed to add within the Long-Term capital gains section.

  • Step 13:

If you have zero set off from the previous years, provide all the details under the option ‘F.’

  • Step 14:

Lastly, you must provide relevant details within the schedules “CYLA” and “Income from Other Sources.”

  • Step 15:

After you have filled in every schedule, you need to proceed with the verification. Here, you need to verify and submit the returns of income tax on trading profit by using Aadhaar-OTP.

To Conclude

While filing Income Tax Return for stock market trading is easy, you must start trading today. Also, make sure you use Shoonya by Finvasia, the multi assets platform for your trading needs. 

They provide powerful and easy-to-use features that enable you to perform fundamental and technical analyses.

Furthermore, you will find multiple charts within a single screen and an enormous range of technical analysis tools. In a nutshell, you will find everything you are looking for in Shoonya by Finvasia.

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