How to file ITR 3?

Income Tax Return Form 3 (ITR-3) is for individuals and HUFs who have income under the head “profits or gains from business or profession” and who are not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam). Electronic filing of the return has been made compulsory for taxpayers. However, in order to file the ITR, you need to be registered on the e-filing portal. The due date to file this return:

  • Non-audit cases is is 31st July of the next financial year
  • Audit cases is 30th September of the next financial year.

Who should file ITR-3?

The persons having income from following sources are eligible to file ITR 3 :

  • Carrying on a business or profession (both tax audit and non-audit cases)
  • Taxpayers registered under presumptive taxation scheme and having a turnover of more than 2 crore during the financial year
  • Individuals and HUFs who are partners in a firm but do not carry out business under proprietorship. Such income may include income from salary, bonus, commission, interest or remuneration from the partnership firm.
  • The return shall also include income from House property, Salary/Pension, capital gains and Income from other sources
ITR for Proprietors with Business Income
CA Assisted Income Tax Return filing for Individuals & HUFs with business income from Proprietary Firm.
[Rated 4.8 stars by customers like you]
ITR for Proprietors with Business Income
CA Assisted Income Tax Return filing for Individuals & HUFs with business income from Proprietary Firm.
[Rated 4.8 stars by customers like you]

How to file ITR 3?

A taxpayer has to compulsorily file ITR-3 online from the e-filing portal of the income tax department. The ITR-3 can be filed Online/Electronically:

  • Prepare ITR 3 offline using Tax Return Preparation Utility and submit it from your Login on Income Tax Website OR
  • Further, you can also prepare and submit it online using E-Return Intermediary (ERI) like Quicko.
  • You can furnish the return electronically under digital signature or by submitting the verification of the return in Form ITR-V/or E-verifying using other modes.
  • Once e-verified using digital signature you will receive the acknowledgement receipt on their registered email id.

Structure of ITR-3

Part/ Schedule Heading Fields
PART A- GENERAL Personal Information Name, Address, Date of Birth, PAN, contact details.
Filing Status Employer Category, Tax status, Residential status, Return filed under the section.
PART B-TI Computation of total income Total Income from all income sources, Losses of the current year set off, Gross Total Income, Deductions under Chapter VI-A.
PART B-TTI Computation of tax liability on total income The Bank Account details, Verification, and TRP details (if any) are to be provided. 
Schedule IT Details of Advance Tax and Self Assessment Tax Payments BSR code, Date of Deposit, Challan number, Tax Paid
Schedule TDS TDS-1: Details of Tax Deducted at Source from SALARY TAN of Employer, Employer Name, Tax Deducted, etc.
TDS-2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) & Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB) TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule TCS Details of tax collected at source TAN of the collector, Name of Collector, Tax Collected, etc.
Manufacturing Account Manufacturing Account for the financial year Fill in the opening inventory, purchases, direct wages, direct expenses, factory overheads and closing stock.
Trading Account Trading Account for Financial Year Fill up the details of Trading Account for the financial year
such as Sales/Gross receipts of business/profession, duties, taxes and cess, etc. Further, in respect of supplies, closing stock and opening stock of finished goods, purchases, direct expenses, duties/taxes etc.
P&L Profit and Loss Account for the financial year
In case you were required to maintain regular books of accounts for the proprietary business or profession, please fill up details at item No. 13 to 60. In case you are not required to maintain regular books of accounts, please fill up details at item No. 61-65 falling into respective income sections
Balance-sheet Balance Sheet as on 31st day of March Balance Sheet of the business or profession as on 31st March of the FY in respect of the proprietary business or profession
carried out. I t shall include: Creditors, Debtors, Bank balance, Fixed Assets, etc.
Schedule OI Other Information Part A-OI, contains details of allowances & disallowances under Income tax act. Fill up the information of items which are applicable.
Schedule QD Quantitative details In Part A-QD, the quantitative details of trading and manufacturing account are required to be furnished in respect of principal items.
Schedule S Details of Income from Salary Name and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc.
Schedule HP Details of Income from House Property Details of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.
Schedule BP Computation of income from business or profession Income chargeable under the head ‘Profits and gains of business or profession’ is computed starting from the net profit before taxes arrived at in the profit and loss account
Schedule DPM Depreciation on Plant and Machinery(Other than assets on which full capital expenditure is allowable as deduction under any other section)  It provides for computation of depreciation admissible under the
Income-tax Act for the year in respect of plant and machinery
Schedule DOA Depreciation on other assets Computation of depreciation admissible under the
Income-tax Act for the year in respect of other category of assets – land, building, furniture and fittings, intangible assets and ships.
Schedule DEP Summary of depreciation on assets It contains a summary of depreciation admissible under the
Income-tax Act for the year in respect of all category of assets
Schedule CG Income from Capital Gains Details about the Short term and Long term Capital gains, Sales consideration, Cost of Acquisition, Deductions under Section 54, 54B, 54EC, 54F, 54GB.
Schedule OS Income from Other Sources A dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games.
Schedule CYLA Details of income after set­off of current year losses Details of current year losses and its Inter Headset off
Schedule BFLA Details of income after Set off of Brought Forward Losses of earlier years Details of brought forward losses set off against current year’s income, total brought forward losses set off.
Schedule CFL Details of Losses to be carried forward to the future years Total of earlier year losses, current year losses, Total of carried forward to future years.
Schedule VI-A Deductions under Chapter VI-A Deductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA.
80G Details of Donations Name of Donee, Address, City or District, State Code, PAN of Donee, Amount.
Schedule SPI The income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of INR 1500 per child, to be included) Name and PAN of Person, Relationship, Nature of Income, Amount.
Schedule SI Income chargeable to income tax at special rates Description of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon.
Schedule EI Details of Exempt Income (Income not to be included in Total Income) Interest income, Dividend, Agricultural Income.
Schedule PTI Details of Income from Business Trust or Investment Fund  Details of Income earned from Business Trust or Investment Fund as per section 115UA, 115UB. 
Schedule FSI Details of Income from outside India and tax relief A country, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A
Schedule TR Summary of tax relief claimed for taxes paid outside India Details of tax relief claimed
Schedule 5A Information regarding the appointment of income between spouses governed by Portuguese Civil Code Name and PAN of a spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details.
Schedule FA Details of Foreign Assets and Income from any source outside India Details of foreign bank accounts, financial interest in any entities, Immovable Properties, Other Capital Assets.
Schedule AL Details of Assets and Liabilities Details of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP.
ITR for Equity, Intraday and F&O Traders
CA Assisted Income Tax Return filing for Traders having income form Equity, Intraday and F&O Trading.
[Rated 4.8 stars by customers like you]
ITR for Equity, Intraday and F&O Traders
CA Assisted Income Tax Return filing for Traders having income form Equity, Intraday and F&O Trading.
[Rated 4.8 stars by customers like you]

FAQ

Can we file ITR 3 without balance sheet?

If you have business income, you need to fill Business head income(BP), Balance Sheet, Trading Account, Profit and Loss Account, Quantitative Details, Depreciation (If claimed), Deductions Chapter VI-A, Tax paid, TDS, etc. You need to check which schedules are applicable to you and fill the requisite data in it.

Is quoting of Aadhaar Number mandatory?

Yes, it is mandatory to mention the Aadhaar number in the return of income or Aadhaar Enrolment ID if applied for.

How can I download ITR 3 utility?

Follow below steps to download ITR Utility:
1. Visit Income Tax E-filing Portal
2. Go to “Income Tax Return Preparation Utilities”.
3. Select your Assessment Year.
4. Download the utility (Excel/Java)

Where do we give disclosure of unexplained income and Dividend Income?

New fields have been inserted in schedule ‘Other Sources’ to declare unexplained credit or investment and dividend received from domestic companies. Further, such persons cannot opt for ITR 1 Sahaj.

What Expenses Can a Trader claim in Income Tax Return?

Expenses a Trader can Claim

A trader can claim all the expenses directly connected to the trading income as a deductible. The expenses incurred should be wholly and exclusively in relation to business and professional income. Therefore, these expenses include business expenses such as:

  • Rent Expense – If the trader has an office in rented premises, you can claim the rent paid as a valid expense. Hence, you must save the rent receipts and rent agreement for future references.
  • Insurance Expense – You can claim insurance expenses on assets used for business purposes.
  • Repairs & Maintenance – Expense paid for repairs of the laptop, furniture, or any other equipment for business purposes are deductible.
  • Office Supplies – Expense like stationery expense, printing expense, tea coffee expenses, etc. is a valid deductible.
  • Electricity Expense – Electricity Expense for office claimed as an expense is deductible. If you are working from home, you can claim electricity expenses proportionally.
  • Membership Fees– If you pay any membership fee for a trading platform or for a platform related to trading, it is deductible. For example, a trader can claim the membership fee paid for becoming a member of the trader’s club. However, if he pays membership fees of a golf club for his recreational purpose, it cannot be claimed
  • Legal & Professional Fees– Any fee paid to a professional for their services is deductible as a valid expense. This includes tax return filing, tax audit, legal advice, consultancy services, etc.
  • Books & Subscriptions – If a trader pays for subscriptions of magazines or purchased books related to trading, it is deductible.
  • Depreciation – It means claiming the cost of the asset as expense over the life of the asset. As per the IT Act, we cannot claim the cost of the asset as an expense; however, you can claim the depreciation on the asset as an expense. For example, You have purchased a high-end computer for Rs 10 lakhs. The depreciation rate is 60%. Hence, you can claim 6 lakhs as depreciation in the 1st year (10,00,000*60%). And can carry forward the remaining amount to next year.
  • Mobile & Internet Expense – Expense incurred to pay mobile bills, telephone bills and internet charges can be claimed. It is deductible if the expense if it is for business purpose.
  • Finance Costs – If you take a loan for your trading business, you can claim interest paid on such a loan as a deductible expense.
  • Trading Expenses – All charges and expenses paid for the purpose of trading are deductible. This includes Brokerage, Turnover Fees, Clearing Charges, Exchange Transaction Charges, STT, Stamp Duty, GST, etc.
  • Other Business Expenses – Any other expense that is directly related to your trading business can be claimed as a valid expense
ITR for F&O Traders
CA Assisted Income Tax Return filing for Individuals and HUFs having income from F&O/ Derivatives Trading.
[Rated 4.8 stars by customers like you]
ITR for F&O Traders
CA Assisted Income Tax Return filing for Individuals and HUFs having income from F&O/ Derivatives Trading.
[Rated 4.8 stars by customers like you]

Can I claim Tax paid as Business Expense?

  • STTSecurities Transaction Tax is paid on trading in securities i.e. equity shares, equity mutual funds, ETFs, equity futures, equity options, etc. The trader can claim STT paid as a valid business expense if he/she reports such income as a business income
  • Stamp Duty – Stamp Duty is an expense on the transfer of securities. Therefore, the trader can claim Stamp Duty paid as a valid business expense if he/she reports such income as a business income
  • CTT – Commodities Transaction Tax is on trading in commodities. The trader can claim CTT paid as a valid business expense
  • Input GST – CGST, SGST, IGST is on trading expenses is deductible as a valid business expense. Only if is the trader has no GST registration. If the trader has registration under GST, they can claim the credit of Input GST against Output GST. Hence, they are not allowed double deductions.
  • Tax on Income – Tax paid on income such as Income Tax or tax paid on sales such as GST cannot be claimed as a business expense

Expenses which a Trader cannot claim in Income Tax Return

  • Personal Expenses – An expense incurred for personal purposes is not deductible.
  • Fines & Penalties – The non-compliance or delay in compliance attracts interest and penal consequences. Hence, interest, fine, late fee, penalty, etc. are not a valid deductible.
  • Tax – Any form of Tax paid on the income earned is not deductible as an expense. For example Income Tax, Advance Tax, GST etc
  • Cash Payment – If an expense has been paid in cash for an amount exceeding Rs. 20,000, it cannot be claimed as an expense. Additionally, there are exceptions to this mentioned under rule 6DD of the Indian Income Tax Act
  • TDS not deposited – If tax is not deducted at source or not deposited, then such expense is not deductible. These expenses include interest, commission, rent, royalty, professional or technical fees paid or payable to any person in India.

Points to remember for Trader who claims Business Expenses

  • The invoice should be in the name of the trader and the invoice date should fall in the relevant financial year
  • If a trader incurs an expense for both personal and business purpose, he/she should claim a reasonable portion towards business
  • The trader should preserve the bills, invoices, or any other proofs of the payments made. You need to submit proofs during the process of Tax Audit by a Chartered Accountant. If the Income Tax Department issues a notice, these proofs justify expenses claimed.
  • If a trader uses some specified services, he/she should deduct TDS as per the applicable TDS section. For example, Mr. X, a trader obtained the services of a professional CA for auditing his books of accounts and filing ITR. Mr. X should deduct TDS u/s 194J on making payment to the Chartered Accountant. He should deposit the TDS and file TDS Return Form 26Q
  • The trader should not pay expenses in cash. The cash payment made to a single person in a day should not exceed Rs. 10,000. Thus, pay expenses using modes other than cash
  • While calculating Income Tax on trading, the trader can claim deductions under chapter VI-A. This includes LIC premium (80C), medical insurance premium (80D), interest on an educational loan (80E), etc.
  • If the income from business or profession is more than Rs.1,50,000 or the total sales or gross receipts is more than Rs.25 lacs in any of the preceding 3 years, then you must maintain books of accounts which can help the Assessing Officer to calculate the taxable income as per the Income Tax Act
  • If a trader opts for Presumptive Scheme u/s 44AD, they cannot claim expenses. This is because they are not required to maintain books of accounts.

A trader having Business Income should claim valid business expenses in the P&L Statement. They also need to prepare financial statements and file ITR-3. The trader also needs to calculate the trading T/O and determine the applicability of Tax Audit to file ITR.

Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
Explore
Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
Explore
Import Your Trades
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Expenses that can be claimed in case of Sale of shares

Income from Sale of shares is taxable under the head Income from Capital Gains. Expenses which are wholly and exclusively incurred in relation to the transfer of shares, are allowed to be deducted from sales consideration. Expenses such as brokerage, stamp duty, sales commission, etc. can be claimed as an expense in your Income Tax Return. All these expenses are allowed as deduction only for the purpose of calculating the Capital Gains. However, Securities Transaction Tax (STT) is not allowed as a deduction.

ITR for Capital Gains from Investment in Stocks
CA Assisted Income Tax Return filing for Individuals and HUFs having income from sale of securities.
[Rated 4.8 stars by customers like you]
ITR for Capital Gains from Investment in Stocks
CA Assisted Income Tax Return filing for Individuals and HUFs having income from sale of securities.
[Rated 4.8 stars by customers like you]

FAQs

Can I claim GST paid as a business expense?

CGST, SGST, IGST paid on expenses is deductible as a valid business expense only if is the business has no GST Registration. If the business is registered under GST, they can claim the credit of Input GST against Output GST. Hence, they are not allowed double deductions. Thus, they cannot claim GST paid as a business expense.

Download Tradebook from Angel Broking

Angel Broking allows you to download your Trade book from their trading portal. A Ledger/Tradebook contains all the transactions made in the stock market from a trading account. Therefore, this applies to all the segments i.e Equity, Futures, Options, etc. Trading ledger is the same as a Tradebook. One also uses Ledgers to prepare a Profit & Loss statement that is used for calculating Income tax on trading for a particular Financial Year.

Promo Code
ANGEL
Tax Compliance for Angel
Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online
[Rated 4.8 stars by customers like you]
Tax Compliance for Angel Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online.
[Rated 4.8 stars by customers like you]
Promo Code
ANGEL
Explore Now

Steps to download Trade book from Angel Broking

  1. Log in to your Angel Broking portal

    Add your user name and password here.

  2. Go to Reports

    Next, select this option from the dashboard

  3. Go to Transactional Reports.

    From the Reports dropdown

  4. From the drop-down select Ledger and all other necessary filters.

    Finally, click on Go.

  5. Click on the Excel sheet

    Here you can download the ledger.

  6. The ledger will be downloaded on your PC

    You can view it from there

Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]
Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is applicable if the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit is less than 6%/8% of the turnover. Filing Tax Audit report is compulsory in order to file ITR. The tax Audit report can only be filed by a CA.

What is the difference between the order book and trade book?

When you place an order in the stock market, the details of the order, quantity of the order, price of the order and its unique order number are captured in the order book. However, for an executed order, its execution status and trade number are recorded in the trade book.
Most of the time, orders get executed immediately, therefore, order book and trade book reflects the same.

Is tradebook the same as Ledger?

Yes, Tradebook and Ledger is the same thing. And they are also used to create P&L Statements.

Download Ledger from Sharekhan

Sharekhan allows you to download your Tradebook/Ledger from their trading portal. A Ledger/Tradebook contains all the transactions made in the stock market from a trading account. Therefore, this applies to all the segments i.e Equity, Futures, Options, etc. Trading ledger is the same as a Tradebook. One also uses Ledgers to prepare a Profit & Loss statement for a particular Financial Year to file Income Tax from Trading.

Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]
Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]

Steps to download Ledger from Sharekhan

  1. Login to Sharekhan portal

    You can do it from here.

  2. Click on Reports.

    From the Dashboard

  3. Select the ledger of any segment that you want to view

    Eg: Equity Ledger Summary

  4. Click on Equity Ledger Summary

    From the options

  5. Select the necessary filters. Click on Show.

    You can now view your Ledger summary.

  6. Click on the excel sheet to download the ledger.

    You can view it from your PC

Import Your Trades
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is applicable if the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit is less than 6%/8% of the turnover. Filing Tax Audit report is compulsory in order to file ITR. The tax Audit report can only be filed by a CA.

What is the difference between the order book and trade book?

quantity of the order, price of the order and its unique order number is recorded in the order book. While when an order is executed in the stock market, its execution status and trade number get recorded in the trade book.
Most of the time, orders get executed immediately, therefore, order book and trade book reflects the same.

Where can I download my Tax P&L reports from Sharekhan?

To download Tax P&L from Sharekhan, log in to the portal. Search for a scrip summary. Open the reports and download them.

Download tradebook from Zerodha

Zerodha allows you to download your Tradebook/Ledger from their trading portal. A Ledger/Tradebook contains all the transactions made in the stock market from a trading account. Therefore, this applies to all the segments i.e Equity, Futures, Options, etc. Trading ledger is the same as a Tradebook. One also uses Ledgers to prepare a Profit & Loss statement for a particular Financial Year while filing Income Tax from Trading.

Promo Code
Zerodha
Tax Compliance for Zerodha
Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online
[Rated 4.8 stars by customers like you]
Tax Compliance for Zerodha Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online.
[Rated 4.8 stars by customers like you]
Promo Code
Zerodha
Explore Now

Steps to download the Ledger/Tradebook from Zerodha

  1. Visit Zerodha Console

    You can do it from here

  2. Log in with your Kite credentials.

    Enter the user name and password

  3. Go to Reports

    Select Tradebook

  4. Select the necessary filters

    Click on View

  5. Your transaction details will be shown

    On the screen

  6. Click on Download XLSX | CSV

    To download your trade book

  7. An excel sheet will be downloaded in your PC

    This is how your trade book will look

Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]
Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is applicable if the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit is less than 6%/8% of the turnover. Filing Tax Audit report is compulsory in order to file ITR. The tax Audit report can only be filed by a CA.

What is the difference between the order book and trade book?

When an order is placed in the stock market, the details of the order, quantity of the order, price of the order and its unique order number is recorded in the order book. While when an order is executed in the stock market, its execution status and trade number get recorded in the trade book.
Most of the time, orders get executed immediately, therefore, order book and trade book reflects the same.

How can I download my Tax P&L reports from Zerodha account?

In order to download your Tax P&L report from Zerodha, you have to log into your Zerodha console account. Click on “Reports” > “Tax P&L”. Thereafter, when the Tax P&L reports open you can download it.

How can I download Contract note from Zerodha?

To download a Contract note from Zerodha, you have to log into your Zerodha console account. Click on “Reports” > “Downloads”. Finally, select contract notes and download them.

Download Tax Profit and Loss report Sharekhan

Sharekhan allows you to download your Profit and Loss Report online. It is the same as a Tax P&L report, and it is an essential document to calculate taxes on trading income. Traders have a “Trading Statement” that consists of a list of transactions undertaken by the person in various segments during a specific period. It consists of details such as:

  1. Date
  2. Time
  3. Script Name
  4. Purchase price
  5. Sale price
  6. Segment
  7. Quantity, etc.

These details then help determine the Tax liability.

Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]
Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]

Steps to download Profit and Loss Report from Sharekhan

  1. Log in to Sharekhan portal

    Access the Sharekhan portal and login to your account.

  2. Search for Scrip summary

    Do this from the search bar. You can view scrip summary separately for all the segments i.e Equity or F&O.

  3. Now you can now view your Scrip summary

    From the dashboard

  4. Click on the Excel sheet

    Click on download your scrip summary

Import Your Trades
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit from such transactions is less than 6% / 8% of the turnover. Additionally, a tax Audit report can only be filed by a CA.

Is Trading Turnover same as Contract Turnover?

No. Contract Turnover is the sum of the purchase value and sales value. It is not applicable for income tax purposes. Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. This turnover is to determine the applicability of the tax audit and the applicable ITR form. Therefore, Trading Turnover is different from Contract Turnover.

How does the Tax profit and Loss Statement help me?

This statement is used to calculate your Tax liability. Therefore, it is needed to file ITR 3.

Open a trading account on Zerodha

You can open a Zerodha account completely online. Recently, stock markets are transformed from an open outcry system to an Electronic system. Trading accounts acts as an investment account that holds your cash or securities electronically and also lets you buy or sell those securities in the stock market. Stock Traders trade many instruments, for example, shares, securities, commodities, and currency through online trading platforms. For Income Tax, Trading income from Equity, Intraday, Equity F&O, Commodity Trading, and Currency Trading is considered as a Business Income.

Promo Code
Zerodha
Tax Compliance for Zerodha
Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online
[Rated 4.8 stars by customers like you]
Tax Compliance for Zerodha Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online.
[Rated 4.8 stars by customers like you]
Promo Code
Zerodha
Explore Now

Steps to open a trading account on Zerodha

  1. Visit Zerodha platform

    You can do it from here.

  2. Enter your mobile number

    You will get an OTP on it. Enter the OTP.

  3. Enter your PAN number and Birthdate as per PAN

    Check the tick box. Click on Continue

  4. Click on all the markets i.e commodity, equity, currency, F&O etc. that you want to deal in.

    After that you will be led to payment.

  5. You will be asked to pay the account opening fees. Click on Pay & Continue.

    You can only continue ahead after the payment.

  6. Lastly, you will be asked to upload your documents i.e. Aadhar and e-sign Aadhar online.

    You can also print the documents and courier them.

  7. Finally, if your documents are valid your account opening request will be successful.

    After that you will receive the account opening notification

Want to invest in Equity?
Need help filing your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]
Want to invest in Equity?
Need help filing your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]

FAQs

What is the difference between Trading and Demat account?

Demat account hold securities and certificates of stocks, shares etc electronically while Trading account lets you buy or sell those securities in the stock market.

Can I have 2 trading accounts?

Yes. An Individual can have as many trading accounts as they want. You can link the same bank account with different trading accounts. However, you can’t have multiple accounts linked with the same broker.

What is 3 in 1 account?

3 in 1 account refers to as an Individual opening a Bank account, Demat account and Trading account simultaneously with the same bank.

Updated Codes: Nature of Business and Profession

Introduction

The Central Board of Direct Taxes (CBDT) has changed the business and profession codes for the Income Tax Return (ITR) from Assessment Year 2019-2020. Hence, you must select the correct codes for the nature of the business or nature of the profession to report the correct information in the ITR. The nature of business code should be selected while filing ITR-3 and ITR-4 on the Income Tax Website.

  • ITR-3 – Taxpayer having income from business/profession who do not opt for the Presumptive Taxation Scheme should prepare financial statements and file ITR-3. The taxpayer should select the correct codes and category under which the business or profession can be classified from the drop-down list. Description of business/profession activity and Trade Name of the business/profession can also be added.
Have income from Business activities?
Need help filing your ITR? Don't worry we can help you!
[Rated 4.8 stars by customers like you]
Have income from Business activities?
Need help filing your ITR? Don't worry we can help you!
[Rated 4.8 stars by customers like you]
  • ITR-4 – Taxpayer having income from business or profession and opting for Presumptive Taxation Scheme u/s 44AD or 44ADA is not required to maintain books of accounts and should file ITR-4. However, the taxpayer should select the correct codes and category under which the business or profession can be classified from the drop-down list. Description of business/profession activity and Trade Name of the business/profession can also be added.
Have income from Professional services?
Need help filing your ITR? Don't worry we can help you!
[Rated 4.8 stars by customers like you]
Have income from Professional services?
Need help filing your ITR? Don't worry we can help you!
[Rated 4.8 stars by customers like you]

List of Business and Profession Codes

I. Profession Codes

Select the code from the list below in case of Income from Profession under ITR-3 or for opting Presumptive Taxation Scheme under Sec 44ADA under ITR-4:

Sub-Sector Code
Advertising  16006
Auctioneers  16010
Business brokerage 16011
Market research and public opinion polling  16012
Labour recruitment and provision of personnel  16014
Investigation and security services  16015
Building-cleaning and industrial cleaning activities  16016
Packaging activities  16017
Other professional services n.e.c. 16019

II. Business Codes

Code Sub-Sector
14001 Software development
14002 Other Software consultancy 
14003 Data processing
14004 Database activities and distribution of electronic content
14005 Other IT enabled services
14006 BPO Service
14008 Maintenance and repair of office, accounting, and computing machinery
16001 Legal Profession
16002 Accounting, Auditing, and book-keeping profession
16003 Tax Consultancy 
16004 Architectural Profession
16005 Engineering and technical consultancy 
16007 Fashion design
16008 Interior decoration
16009 Photography
16013 Business and Management Consultancy activities 
16018 Secretarial activities
16019_1 Medical profession
16020 Film artist
General hospitals 18001
Specialty and super-specialty hospitals 18002
Nursing homes 18003
Diagnostic centers 18004
Pathological laboratories  18005
Medical clinics  18010
Dental practice  18011
Ayurveda practice  18012
Unani practice  18013
Homeopathy practice  18014
Nurses, physiotherapists or other para-medical practitioners 18015
Veterinary hospitals and practice 18016
Other healthcare services  18017
Medical research  18018
Practice of other alternative medicine 18019
Individual artists excluding authors 18020
Individual artists excluding authors 20010
Literary activities 20011
Other cultural activities n.e.c. 20012

Agricultural, Animal, Husbandry & Forestry

Sub-Sector Code
Growing and manufacturing of tea 01001
Growing and manufacturing of coffee 01002
Growing and manufacturing of rubber 01003
Market gardening and horticulture specialties 01004
Raising of silkworms and production of silk 01005
Raising of bees and production of honey 01006
Raising of poultry and production of eggs 01007
Rearing of sheep and production of wool 01008
Rearing of animals and production of animal products 01009
Agricultural and animal husbandry services 01010
Soil conservation, soil testing, and soil desalination services 01011
Hunting, trapping and game propagation services 01012
Growing   of   timber,   plantation,   operation   of   tree   nurseries   and
conserving of forest
01013
Gathering of tendu leaves 01014
Gathering of other wild-growing materials 01015
Forestry   service   activities,   timber   cruising,   afforestation   and
reforestation
01016
Logging service activities, transport of logs within the forest 01017
Other agriculture, animal husbandry or forestry activity n.e.c 01018

Fish Farming

 Sub-Sector Code 
Fishing on a commercial basis in inland waters 02001
Fishing on commercial basis in ocean and coastal areas 02002
Fish farming 02003
Gathering of marine materials such as natural pearls, sponges, coral
etc.
02004
Services related to marine and fresh water fisheries, fish hatcheries
and fish farms
02005
Other Fish farming activity n.e.c 02006

Mining and Quarrying

Sub-Sector  Code 
Mining and agglomeration of hard coal 03001
Mining and agglomeration of lignite 03002
Extraction and agglomeration of peat 03003
Extraction of crude petroleum and natural gas 03004
Service  activities  incidental  to  oil  and  gas  extraction  excluding
surveying
03005
Mining of uranium and thorium ores 03006
Mining of iron ores 03007
Mining of non-ferrous metal ores, except uranium and thorium ores 03008
Mining of gemstones 03009
Mining of chemical and fertilizer minerals 03010
Mining of quarrying of abrasive materials 03011
Mining of mica, graphite and asbestos 03012
Quarrying of stones (marble/granite/dolomite), sand and clay 03013
Other mining and quarrying 03014
Mining and production of salt 03015
Other mining and quarrying n.e.c 03016

Manufacturing

Sub-Sector  Code 
Production, processing and preservation of meat and meat products 04001
Production, processing and preservation of fish and fish products 04002
Manufacture of vegetable oil, animal oil and fats 04003
Processing of fruits, vegetables and edible nuts 04004
Manufacture of dairy products 04005
Manufacture of sugar 04006
Manufacture of cocoa, chocolates and sugar confectionery 04007
Flour milling 04008
Rice milling 04009
Dal milling 04010
Manufacture of other grain mill products 04011
Manufacture of bakery products 04012
Manufacture of starch products 04013
Manufacture of animal feeds 04014
Manufacture of other food products 04015
Manufacturing of wines 04016
Manufacture of beer 04017
Manufacture of malt liquors 04018
Distilling and blending of spirits, production of ethyl alcohol 04019
Manufacture of mineral water 04020
Manufacture of soft drinks 04021
Manufacture of other non-alcoholic beverages 04022
Manufacture of tobacco products 04023
Manufacture of textiles (other than by handloom) 04024
Manufacture of textiles using handlooms (khadi) 04025
Manufacture  of  carpet,  rugs,  blankets,  shawls  etc.  (other  than  by
hand)
04026
Manufacture of carpet, rugs, blankets, shawls etc. by hand 04027
Manufacture of wearing apparel 04028
Tanning and dressing of leather 04029
Manufacture of luggage, handbags and the like saddler and harness 04030
Manufacture of footwear 04031
Manufacture  of  wood  and  wood  products,  cork,  straw and  plaiting
material
04032
Manufacture of paper and paper products 04033
Publishing, printing and reproduction of recorded media 04034
Manufacture of coke oven products 04035
Manufacture of refined petroleum products 04036
Processing of nuclear fuel 04037
Manufacture of fertilizers and nitrogen compounds 04038
Manufacture of plastics in primary forms and of synthetic rubber 04039
Manufacture of paints, varnishes and similar coatings 04040
Manufacture of pharmaceuticals, medicinal chemicals and botanical
products
04041
Manufacture of soap and detergents 04042
Manufacture of other chemical products 04043
Manufacture of man-made fibers 04044
Manufacture of rubber products 04045
Manufacture of plastic products 04046
Manufacture of glass and glass products 04047
Manufacture of cement, lime and plaster 04048
Manufacture of articles of concrete, cement and plaster 04049
Manufacture of Bricks 04050
Manufacture of other clay and ceramic products 04051
Manufacture of other non-metallic mineral products 04052
Manufacture of pig iron, sponge iron, Direct Reduced Iron etc. 04053
Manufacture of Ferro alloys 04054
Manufacture of Ingots, billets, blooms and slabs etc. 04055
Manufacture of steel products 04056
Manufacture of basic precious and non-ferrous metals 04057
Manufacture of non-metallic mineral products 04058
Casting of metals 04059
Manufacture of fabricated metal products 04060
Manufacture of engines and turbines 04061
Manufacture of pumps and compressors 04062
Manufacture of bearings and gears 04063
Manufacture of ovens and furnaces 04064
Manufacture of lifting and handling equipment 04065
Manufacture of other general purpose machinery 04066
Manufacture of agricultural and forestry machinery 04067
Manufacture of Machine Tools 04068
Manufacture of machinery for metallurgy 04069
Manufacture of machinery for mining, quarrying and constructions 04070
Manufacture of machinery for processing of food and  beverages 04071
Manufacture of machinery for leather and textile 04072
Manufacture of weapons and ammunition 04073
Manufacture of other special purpose machinery 04074
Manufacture of domestic appliances 04075
Manufacture of office, accounting and computing machinery 04076
Manufacture of electrical machinery and apparatus 04077
Manufacture  of  Radio,  Television,  communication  equipment  and apparatus 04078
Manufacture of medical and surgical equipment 04079
Manufacture of industrial process control equipment 04080
Manufacture  of  instruments  and  appliances  for  measurements  and
navigation
04081
Manufacture of optical instruments 04082
Manufacture of watches and clocks 04083
Manufacture of motor vehicles 04084
Manufacture of body of motor vehicles 04085
Manufacture of parts & accessories of motor vehicles &  engines 04086
Building & repair of ships and boats 04087
Manufacture of railway locomotive and rolling stocks 04088
Manufacture of aircraft and spacecraft 04089
Manufacture of bicycles 04090
Manufacture of other transport equipment 04091
Manufacture of furniture 04092
Manufacture of jewellery 04093
Manufacture of sports goods 04094
Manufacture of musical instruments 04095
Manufacture of games and toys 04096
Other manufacturing n.e.c. 04097
Recycling of metal waste and scrap 04098
Recycling of non- metal waste and scrap 04099

Electricity, Gas and Water

Sub-Sector  Code 
Production, collection and distribution of electricity 05001
Manufacture and distribution of gas 05002
Collection, purification and distribution of water 05003
Other essential commodity service  n.e.c 05004

Construction

Sub-Sector  Code 
Site preparation works 06001
Building of complete constructions or parts- civil contractors 06002
Building installation 06003
Building completion 06004
Construction and maintenance of roads, rails, bridges, tunnels, ports,
harbour, runways etc.
06005
Construction and maintenance of power plants 06006
Construction  and maintenance of industrial plants 06007
Construction  and maintenance of power transmission and
telecommunication lines
06008
Construction of water ways and water reservoirs 06009
Other construction activity n.e.c. 06010

Real Estate and Renting Services

Sub-Sector Code
Purchase, sale, and letting of leased buildings (residential and non-residential) 07001
Operating of real estate of self-owned buildings (residential and non-residential) 07002
Developing and subdividing real estate into lots 07003
Real estate activities on a fee or contract basis  07004
Other real estate/renting services n.e.c 07005

Renting of Machinery

Sub-Sector  Code 
Renting of land transport equipment 08001
Renting of water transport equipment 08002
Renting of air transport equipment 08003
Renting of agricultural machinery and equipment 08004
Renting of construction and civil engineering machinery 08005
Renting of office machinery and equipment 08006
Renting of other machinery and equipment n.e.c. 08007
Renting of personal and household goods n.e.c. 08008
Renting of other machinery n.e.c. 08009

Wholesale and Retail Trade

Sub-Sector  Code 
Wholesale and retail sale of motor vehicles 09001
Repair and maintenance of motor vehicles 09002
Sale of motor parts and accessories- wholesale and retail 09003
Retail sale of automotive fuel 09004
General commission agents, commodity brokers and auctioneers 09005
Wholesale of agricultural raw material 09006
Wholesale of food & beverages and tobacco 09007
Wholesale of household goods 09008
Wholesale of metals and metal ores 09009
Wholesale of household goods 09010
Wholesale of construction material 09011
Wholesale of hardware and sanitary fittings 09012
Wholesale of cotton and jute 09013
Wholesale of raw wool and raw silk 09014
Wholesale of other textile fibres 09015
Wholesale of industrial chemicals 09016
Wholesale of fertilizers and pesticides 09017
Wholesale of electronic parts & equipment 09018
Wholesale of other machinery, equipment and supplies 09019
Wholesale of waste, scrap & materials for re-cycling 09020
Retail sale of food, beverages and tobacco in specialized stores 09021
Retail sale of other goods in specialized stores 09022
Retail sale in non-specialized stores 09023
Retail sale of textiles, apparel, footwear, leather goods 09024
Retail sale of other household appliances 09025
Retail sale of hardware, paint and glass 09026
Wholesale of other products n.e.c 09027
Retail sale of other products n.e.c 09028

Hotels, Restaurants and Hospitality Services

Sub-Sector  Code
Hotels – star rated 10001
Hotels – non-star rated 10002
Motels, inns, and Dharmshalas 10003
Guesthouses and circuit houses 10004
Dormitories and hostels at educational institutions  10005
Short stay accommodations n.e.c 10006
Restaurants – without bars 10007
Canteens 10008
Independent caterers 10009
Casinos and other games of chance 10010
Other hospitality services n.e.c 10011

Transport & Logistics Services

 

Sub-Sector Code
Travel agencies and tour operators  11001
Packers and movers 11002
Passenger land transport  11003
Air transport 11004
Transport by urban/sub-urban railways 11005
Inland water transport 11006
Sea and coastal water transport 11007
Freight transport by road 11008
Freight transport by railways 11009
Forwarding of freight  11010
Receiving and acceptance of freight 11011
Cargo handling  11012
Storage and warehousing 11013
Transport via pipelines (transport of gases, liquids, slurry, and other commodities) 11014
Other transport and logistics services n.e.c 11015

Post and Telecommunication Services

Sub-Sector Code
Post and courier activities  12001
Basic telecom services 12002
Value added telecom services 12003
Maintenance of telecom network 12004
Activities of the cable operators 12005
Other post & telecommunication services n.e.c 12006

Financial Intermediation Services

Sub-Sector Code
Commercial, saving banks and discount houses 13001
Specialized institutions granting credit 13002
Financial leasing  13003
Hire-purchase financing  13004
Housing finance activities  13005
Commercial loan activities  13006
Credit cards 13007
Mutual funds 13008
Chit fund 13009
Investment activities 13010
Life insurance  13011
Pension funding  13012
Non-life insurance  13013
Administration of financial markets 13014
Stockbrokers, sub-brokers and related activities 13015
Financial advisers, Mortgage advisers, and brokers 13016
Foreign exchange services 13017
Other financial intermediation services n.e.c 13018

Sub-Sector Code
Cybercafe 14007
Computer training and educational institutes 14009
Other computation related services n.e.c 14010

Research and Development

Sub-Sector  Code 
Natural sciences and engineering 15001
Social sciences and humanities 15002
Other Research & Development activities n.e.c. 15003

Education Services

Sub-Sector  Code
Primary education 17001
Secondary/senior secondary education 17002
Technical and vocational secondary/senior secondary education  17003
Higher education  17004
Education by correspondence  17005
Coaching centers tuitions  17006
Other education services n.e.c 17007

Health Care and Services

Sub-Sector Code
Independent blood banks  18006
Medical transcription  18007
Independent ambulance services 18008
Medical suppliers, agencies and stores 18009

Social and Community Work

Sub-Sector  Code 
Social work activities with accommodation (orphanages and old age homes) 19001
Social work activities without accommodation (Creches) 19002
Industry associations, chambers of commerce 19003
Professional organisations 19004
Trade unions 19005
Religious organizations 19006
Political organisations 19007
Other membership organisations n.e.c. (rotary clubs, book clubs and 19008
philatelic clubs)  
Other Social or community service n.e.c 19009

Culture and Sport

Sub-Sector  Code 
Motion picture production 20001
Film distribution 20002
Film laboratories 20003
Television channel productions 20004
Television channels broadcast 20005
Video production and distribution 20006
Sound recording studios 20007
Radio – recording and distribution 20008
Stage production and related activities 20009
Circuses and race tracks 20013
Video Parlours 20014
News agency activities 20015
Library and archives activities 20016
Museum activities 20017
Preservation of historical sites and buildings 20018
Botanical and zoological gardens 20019
Operation and maintenance of sports facilities 20020
Activities of sports and game schools 20021
Organisation and operation of indoor/outdoor sports and promotion and production of sporting events 20022
Other sporting activities n.e.c. 20023
Other recreational activities n.e.c. 20024

Other Services

Sub-Sector Code
Hairdressing and other beauty treatment 21001
Funeral and related activities 21002
Marriage bureaus  21003
Pet care services 21004
Sauna and steam baths, massage salons, etc. 21005
Astrological and spiritualists’ activities  21006
Private households as employers of domestic staff 21007
Other services n.e.c 21008

Extra Territorial Organisations and Bodies

Sub-Sector  Code 
Extraterritorial organizations and   bodies   (IMF,   World   Bank, European Commission etc.) 22001

FAQs

What is the full form of “n.e.c”?

“n.e.c” stands for “not elsewhere classified.” Hence, the information given here is exclusive and not available elsewhere.

How to Choose the Correct Business or Profession Codes?

Follow these steps to select the correct business or profession codes:

-Select the codes by verifying the nature of the product or services involved to determine the sector of business or profession.
-Under each sector, the nature of the activity involved is to be seen for determining the sub-sector.
-In case you are undertaking multiple activities, different businesses, or professions, then you have to select various codes under the same trade name.
-In cases where there is more than one trade name for the under single PAN, then you have to mention multiple codes under different trade names.
-Each Sector has an others code n.e.c., in case your product or services or activity is not specifically listed in the main classification, then one can choose n.e.c.

Download Tax Profit and Loss report from Upstox

Upstox allows you to download your Profit and Loss Report online. It is the same as a Tax P&L report, and it is an essential document to calculate income tax on trading income. Traders have a “Trading Statement” that consists of a list of transactions undertaken by the person in various segments during a specific period. It consists of details such as:

  1. Date
  2. Time
  3. Script Name
  4. Purchase price
  5. Sale price
  6. Segment
  7. Quantity, etc.

These details then help determine the Tax liability.

Invested in Equity or Mutual Funds?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]
Invested in Equity or Mutual Funds?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]

Steps to download Tax Profit and Loss report from Upstox

  1. Visit Upstox platform

    Using the link inserted here

  2. Log in with your user id and your password

    Your password will be your PAN in caps lock if you are logging in for the first time.

  3. Go to Bill > Profit/Loss

    After logging into the Dashboard

  4. Set the relevant filters

    Click on GO. Then click on Export to Excel.

  5. Your P&L statement will be downloaded to your PC

    You can access it from there.

Import Your Trades
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit from such transactions is less than 6% / 8% of the turnover. Additionally, a tax Audit report can only be filed by a CA.

Is Trading Turnover same as Contract Turnover?

No. Contract Turnover is the sum of the purchase value and sales value. It is not applicable for income tax purposes. Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. This turnover is to determine the applicability of the tax audit and the applicable ITR form. Therefore, Trading Turnover is different from Contract Turnover.

How does the Tax profit and Loss Statement help me?

This statement is used to calculate your Tax liability. Therefore, it is needed to file ITR 3.

Download Tax Profit and Loss report from ICICI Direct

ICICI Direct allows you to download your Profit and Loss Report online. It is the same as a Tax P&L report, and it is an essential document to calculate income tax on trading income. Traders have a “Trading Statement” that consists of a list of transactions undertaken by the person in various segments during a specific period. It consists of details such as:

  1. Date
  2. Time
  3. Script Name
  4. Purchase price
  5. Sale price
  6. Segment
  7. Quantity, etc.

These details then help determine the Tax liability. It also helps determine tax audit applicability.

Promo Code
ICICI
Tax Compliance for ICICI Direct Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online
[Rated 4.8 stars by customers like you]
Tax Compliance for ICICI Direct Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online.
[Rated 4.8 stars by customers like you]
Promo Code
ICICI
Explore Now

Steps to download Tax Profit and Loss report from ICICI Direct

  1. Log in to your ICICI Direct Account

    You can do it from here.

  2. Navigate to Portfolio

    Under ‘Portfolio’, select ‘Equity’.

  3. Select the Time Frame

    Select the relevant Financial Year and Frequency. Press ‘View’.

  4. Download the Report

    Press on ‘Download’ to download the report to your device.

Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]
Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit from such transactions is less than 6% / 8% of the turnover. Additionally, a tax Audit report can only be filed by a CA.

Is Trading Turnover same as Contract Turnover?

No. Contract Turnover is the sum of the purchase value and sales value. It is not considered for income tax purposes. Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. This turnover is considered to determine the applicability of the tax audit and the applicable ITR form. Therefore, Trading Turnover is different from Contract Turnover.

How does the Tax profit and Loss Statement help me?

This statement is used to calculate your Tax liability. Therefore, it is needed to file ITR 3.