{"id":18238,"date":"2026-07-07T14:59:39","date_gmt":"2026-07-07T14:59:39","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=18238"},"modified":"2026-07-07T15:01:29","modified_gmt":"2026-07-07T15:01:29","slug":"how-to-show-stock-market-income","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/how-to-show-stock-market-income\/","title":{"rendered":"How to Show\u00a0Stock Market Income in ITR: A Complete Beginner&#8217;s Guide (AY 2026-27)"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#aioseo-why-you-must-report-stock-market-income-3\">Why You Must\u00a0Report\u00a0Stock Market Income?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-the-three-categories-of-stock-market-income-6\">The Three Categories of\u00a0Stock Market Income<\/a><ul><\/ul><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-dividend-income-dont-forget-this-one-26\">Dividend Income:\u00a0Don&#039;t\u00a0Forget\u00a0This\u00a0One<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-which-itr-form-should-you-file-28\">Which ITR Form Should You File?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-step-by-step-how-to-actually-report-it-32\">Step-by-Step: How to Actually Report It?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-due-dates-for-ay-2026-27-51\">Due Dates for AY 2026-27<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-do-you-need-a-tax-audit-63\">Do You Need a Tax Audit?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-common-mistakes-to-avoid-72\">Common Mistakes to Avoid<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-conclusion-80\">Conclusion<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-frequently-asked-question-86\">Frequently Asked Question<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\">If you bought or sold<a href=\"https:\/\/navia.co.in\/equity\" title=\"\"> shares<\/a>, <a href=\"https:\/\/navia.co.in\/mutual-funds\" title=\"\">mutual funds<\/a>, or F&amp;O contracts during FY 2025-26, many of these transactions may be reflected in your Annual Information&nbsp;Statement (AIS) and other tax records available on the <a href=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/\" title=\"\">Income Tax e-filing portal<\/a>. It is therefore important to report your income correctly in your Income Tax Return (ITR).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In&nbsp;this&nbsp;blog let us&nbsp;break down, in plain language,&nbsp;about&nbsp;how&nbsp;stock market income is taxed in India, which ITR form applies to you, and how to report it&nbsp;step by&nbsp;step \u2014 whether you&#8217;re a long-term investor, a swing trader, or someone who dabbles in<a href=\"https:\/\/navia.co.in\/open-options-trading-account\" title=\"\"> Futures &amp; Options.&nbsp;<\/a><\/p>\n\n\n\n<h2 id=\"aioseo-why-you-must-report-stock-market-income-3\" class=\"wp-block-heading has-text-color has-link-color wp-elements-ea5850926753ffa9d314953b3303c28f\" style=\"color:#033287\"><strong>Why You Must&nbsp;Report&nbsp;Stock Market Income?<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every time you buy or sell shares through a broker like the <a href=\"https:\/\/open.navia.co.in\/index-navia.php?datasource=&amp;landingpage=home&amp;utm_source=&amp;utm_medium=&amp;utm_campaign=&amp;utm_term=&amp;utm_content=&amp;gclid=&amp;fbclid=&amp;gtm_campaign_url=https%3A%2F%2Fnavia.co.in%2F&amp;gtm_referrar=https%3A%2F%2Fwww.google.com%2F&amp;device=Website&amp;page_reference=home&amp;_gl=1*ez2yuu*_gcl_au*NjY5NTQ0NjM2LjE3NzkyNTUwNTQ.\" title=\"\">Navia All in One App<\/a>, that transaction is reported to the Income Tax Department. <a href=\"https:\/\/navia.co.in\/pricing\" title=\"\">Securities Transaction Tax (STT)<\/a> is collected on eligible securities transactions through your broker and deposited as per applicable regulations. But here&#8217;s the part beginners often miss: <strong>STT is not the same as income tax.<\/strong> Paying STT does not mean your tax obligation is over \u2014 you still need to calculate and report the resulting gain or loss in your ITR and pay tax on it separately, if applicable.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If there&#8217;s a mismatch between what your broker reports in the AIS and what you declare in your ITR, it may result in a query or communication from the Income Tax Department seeking clarification. So the safest approach is to reconcile your trading statements before you file.<\/p>\n\n\n\n<h2 id=\"aioseo-the-three-categories-of-stock-market-income-6\" class=\"wp-block-heading has-text-color has-link-color wp-elements-65ef7a816e306e4aa1fef9909a54dfa2\" style=\"color:#033287\"><strong>The Three Categories of&nbsp;Stock Market Income<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the key concepts to understand is how different stock market activities are classified for tax purposes:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Type of Activity<\/strong>&nbsp;<\/th><th><strong>Tax Category<\/strong>&nbsp;<\/th><th><strong>Reported Under<\/strong>&nbsp;<\/th><\/tr><\/thead><tbody><tr><td>Buying and holding shares\/mutual funds, then selling later&nbsp;<\/td><td>Capital Gains&nbsp;<\/td><td>Schedule Capital Gains&nbsp;<\/td><\/tr><tr><td>Buying and selling the same&nbsp;stock within the same day (no&nbsp;delivery)&nbsp;<\/td><td>Speculative Business Income&nbsp;<\/td><td>Schedule Business\/Profession&nbsp;<\/td><\/tr><tr><td>Trading in Futures &amp; Options (F&amp;O)&nbsp;<\/td><td>Non-Speculative Business Income&nbsp;<\/td><td>Schedule Business\/Profession&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A lot of tax notices trace back to exactly&nbsp;this&nbsp;confusion \u2014 someone reports their F&amp;O profit or loss inside the capital gains section instead of the business income section, and the return gets kicked back as incomplete or inconsistent. Getting the classification right at the&nbsp;start avoids that headache entirely.&nbsp;Let&#8217;s&nbsp;look at each category in detail below.&nbsp;<\/p>\n\n\n\n<h3 id=\"aioseo-1-capital-gains-for-delivery-based-investors-10\" class=\"wp-block-heading has-text-color has-link-color wp-elements-cd0522ee37b1d737999dedc34b2300dd\" style=\"color:#ec4d37\"><strong>1. Capital Gains \u2014 For&nbsp;Delivery-Based Investors<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you buy shares or equity&nbsp;mutual fund units and take&nbsp;delivery (i.e., they sit in your demat account before you sell), any profit or loss you make is a&nbsp;<strong>capital gain or loss<\/strong>. The tax you pay depends entirely on how long you&nbsp;held&nbsp;the investment.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Short-Term Capital Gains (STCG) \u2014 Section 111A<\/strong>&nbsp;If you sell listed shares or equity&nbsp;mutual funds within&nbsp;<strong>12 months<\/strong>&nbsp;of buying them, the profit is short-term.&nbsp;STCG&nbsp;on which Securities Transaction Tax (STT) has been paid is taxed at a flat&nbsp;<strong>20%<\/strong>, a rate that has applied since 23 July 2024 and continues for FY 2025-26 (AY 2026-27).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Long-Term Capital Gains (LTCG) \u2014 Section 112A<\/strong>&nbsp;If you hold listed shares or equity&nbsp;mutual funds for&nbsp;<strong>more than 12 months<\/strong>, the profit is long-term. LTCG is taxed at a flat&nbsp;<strong>12.5%<\/strong>, but you get an exemption of up to&nbsp;<strong>\u20b91.25 lakh<\/strong>&nbsp;in&nbsp;a financial year&nbsp;\u2014&nbsp;only the amount above&nbsp;this&nbsp;threshold is taxed.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Example:<\/strong>&nbsp;Say you invested in a company called XYZ Ltd. through the Navia All in One App. You sold some shares after 8 months for a profit of \u20b990,000 (short-term) and other shares held for&nbsp;18 months&nbsp;for a profit of \u20b91.6 lakh (long-term). Your&nbsp;STCG&nbsp;of \u20b990,000 is taxed at 20%. Your LTCG of \u20b91.6 lakh gets the \u20b91.25 lakh exemption, so&nbsp;only \u20b935,000 is taxed at 12.5%.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Important trap:<\/strong>&nbsp;The Section 87A rebate (which makes income up to \u20b912 lakh tax-free under certain conditions) does&nbsp;<strong>not<\/strong>&nbsp;apply to&nbsp;STCG&nbsp;or LTCG taxed under Sections 111A and 112A.&nbsp;This&nbsp;means even a modest&nbsp;capital gain can create a tax bill, regardless of your total income level.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Set-off&nbsp;of losses:<\/strong>&nbsp;A short-term capital loss can be adjusted against&nbsp;both short-term and long-term capital gains.&nbsp;A long-term capital loss can&nbsp;only be adjusted against&nbsp;long-term capital gains. Unused capital losses can&nbsp;generally be&nbsp;carried forward for up to 8 assessment years, provided you file your ITR by the due date.&nbsp;<\/p>\n\n\n\n<h3 id=\"aioseo-2-speculative-business-income-for-intraday-traders-17\" class=\"wp-block-heading has-text-color has-link-color wp-elements-9024ff7f1b2a1dcbf0483945e7090ddb\" style=\"color:#ec4d37\"><strong>2. Speculative Business Income \u2014 For Intraday Traders<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you buy and sell the same&nbsp;stock on the same trading day without taking&nbsp;delivery,&nbsp;this&nbsp;is&nbsp;<strong>intraday trading<\/strong>, and under Section 43(5) of the Income Tax Act, it is classified as&nbsp;<strong>speculative business income<\/strong>&nbsp;\u2014 not a capital gain.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This&nbsp;means intraday profits are&nbsp;<strong>not taxed at a flat rate<\/strong>. Instead, they are added to your total income and taxed according to your regular income tax slab rate.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Important:<\/strong>&nbsp;Speculative losses (from intraday trading) can&nbsp;only be set off against&nbsp;speculative gains \u2014 they cannot be adjusted against&nbsp;your salary, capital gains, or other business income. They can be carried forward for up to 4 assessment years, but&nbsp;only against&nbsp;future speculative income.&nbsp;<\/p>\n\n\n\n<h3 id=\"aioseo-3-non-speculative-business-income-for-fo-traders-21\" class=\"wp-block-heading has-text-color has-link-color wp-elements-ea3af35533dbf63028e7579fb91f44da\" style=\"color:#ec4d37\"><strong>3. Non-Speculative Business Income \u2014 For F&amp;O Traders<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Trading in Futures &amp; Options (F&amp;O) is treated differently from both capital gains and intraday equity&nbsp;trading. It is classified as&nbsp;<strong>non-speculative business income<\/strong>, reported in Schedule BP (Business\/Profession) of your ITR, along with a profit and loss&nbsp;statement.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">F&amp;O profit or loss is added to your other income and taxed at your applicable slab rate \u2014&nbsp;there&#8217;s&nbsp;no special flat rate.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Turnover calculation matters:<\/strong>&nbsp;A common misunderstanding is treating the full value of every F&amp;O contract bought and sold as &#8220;turnover.&#8221;&nbsp;That&#8217;s&nbsp;not how it works. For tax purposes, you&nbsp;add up&nbsp;the profit or loss from each individual trade as a positive number \u2014 regardless of whether that trade was a gain or a loss \u2014 and then add any premium collected from options you sold.&nbsp;So&nbsp;a trader with \u20b940,000 in gains on one trade and \u20b925,000 in losses on another has a turnover of \u20b965,000 for that pair, even though the net result is&nbsp;only \u20b915,000.&nbsp;This turnover figure is one of the factors considered while&nbsp;determining&nbsp;whether the tax audit provisions may apply, so getting it right matters more than it might seem.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Set-off of losses:<\/strong>&nbsp;F&amp;O losses (being non-speculative) can be set off against&nbsp;almost&nbsp;any other income \u2014 including capital gains and other business income \u2014 but&nbsp;generally not&nbsp;against&nbsp;salary income in the same year. Unabsorbed losses can&nbsp;typically&nbsp;be carried forward for up to 8 assessment years.&nbsp;<\/p>\n\n\n\n<h2 id=\"aioseo-dividend-income-dont-forget-this-one-26\" class=\"wp-block-heading has-text-color has-link-color wp-elements-cca864ac39b75102f49342bd3014c858\" style=\"color:#032287\"><strong>Dividend Income:&nbsp;Don&#8217;t&nbsp;Forget&nbsp;This&nbsp;One<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you hold shares or mutual fund units, any dividend you receive is fully taxable in your hands at your applicable income tax slab&nbsp;rate, and&nbsp;must&nbsp;be reported under &#8220;Income from Other Sources.&#8221; If your dividend income from a single company exceeds \u20b910,000 in a year, the company&nbsp;typically&nbsp;deducts TDS at 10% before paying you \u2014 but&nbsp;this&nbsp;doesn&#8217;t mean the income is tax-free; you must&nbsp;still report the gross dividend and claim credit for the TDS already deducted.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=Show+stock+market+income+\"><img decoding=\"async\" src=\"https:\/\/d1l8l3rp33cdzs.cloudfront.net\/images\/naviacee\/Open-free-demat-account%20%28blog%29%20%281%29.gif\" alt=\"\"\/><\/a><\/figure>\n\n\n\n<h2 id=\"aioseo-which-itr-form-should-you-file-28\" class=\"wp-block-heading has-text-color has-link-color wp-elements-59be9c3bba282127736a6fa02d0c2627\" style=\"color:#032287\"><strong>Which ITR Form Should You File?<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Picking the right ITR form is where most&nbsp;people go wrong.&nbsp;Here&#8217;s&nbsp;a simple way&nbsp;to match your situation to the correct form:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Your Situation<\/strong>&nbsp;<\/th><th><strong>ITR Form<\/strong>&nbsp;<\/th><\/tr><\/thead><tbody><tr><td>Only LTCG&nbsp;under Section 112A, up to \u20b91.25 lakh, no losses to carry forward&nbsp;[Eligibility&nbsp;for ITR-1 depends on the applicable Income Tax Rules for the relevant assessment year]&nbsp;<\/td><td>ITR-1 (Sahaj)&nbsp;<\/td><\/tr><tr><td>Any&nbsp;STCG, LTCG above the exemption limit, or capital losses \u2014 but no business income&nbsp;<\/td><td>ITR-2&nbsp;<\/td><\/tr><tr><td>Intraday trading and\/or F&amp;O trading (business income), with or without capital gains&nbsp;<\/td><td>ITR-3&nbsp;<\/td><\/tr><tr><td>F&amp;O\/intraday income&nbsp;only, opting for presumptive taxation under Section 44AD&nbsp;<\/td><td>ITR-4&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Put simply: pure&nbsp;delivery-based investing through the Navia All in One App keeps you in&nbsp;<strong>ITR-2<\/strong>&nbsp;territory, while any amount of intraday or F&amp;O activity&nbsp;pushes you into&nbsp;<strong>ITR-3<\/strong>, since tax law treats that activity&nbsp;as running a business rather than making an investment.<\/p>\n\n\n\n<h2 id=\"aioseo-step-by-step-how-to-actually-report-it-32\" class=\"wp-block-heading has-text-color has-link-color wp-elements-dfe944cf4ec9d4caa51b2d0fe19854d3\" style=\"color:#032287\"><strong>Step-by-Step: How to Actually Report It<\/strong>?<\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Download your&nbsp;statements.<\/strong>&nbsp;Get your&nbsp;consolidated&nbsp;capital gains&nbsp;statement and, if applicable, your F&amp;O\/intraday profit-and-loss&nbsp;statement from the Navia All in One App.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li><strong>Check your AIS and Form 26AS.<\/strong>&nbsp;Log in to the income tax e-filing portal and download your Annual Information&nbsp;Statement and Form 26AS. Reconcile these against&nbsp;your own records \u2014 any unexplained mismatch can&nbsp;trigger&nbsp;a query.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li><strong>Choose the correct ITR form<\/strong>&nbsp;based on the table above.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li><strong>Fill Schedule Capital Gains<\/strong>&nbsp;(for&nbsp;delivery-based investing): enter&nbsp;STCG&nbsp;and LTCG separately. For LTCG under Section 112A,&nbsp;you&#8217;ll&nbsp;need scrip-wise detail \u2014 each&nbsp;stock, quantity, cost, and sale value \u2014 in Schedule 112A.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li><strong>Apply&nbsp;grandfathering,&nbsp;<\/strong>where&nbsp;applicable under the Income Tax Act.&nbsp;If you bought shares before 1 February 2018, your cost&nbsp;of acquisition for LTCG purposes is calculated using a special&nbsp;grandfathering rule that protects gains earned before that date.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"6\" class=\"wp-block-list\">\n<li><strong>Fill Schedule Business\/Profession<\/strong>&nbsp;(for intraday and F&amp;O income): report your turnover, expenses (like&nbsp;brokerage and&nbsp;STT, which are legitimate deductions), and net profit or loss.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"7\" class=\"wp-block-list\">\n<li><strong>Report dividend income<\/strong>&nbsp;under &#8220;Income from Other Sources,&#8221; and check that any TDS deducted is reflected correctly.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"8\" class=\"wp-block-list\">\n<li><strong>Set off and carry forward losses<\/strong>&nbsp;as applicable, following the rules described above for each category.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"9\" class=\"wp-block-list\">\n<li><strong>Pay any self-assessment tax due<\/strong>,&nbsp;submit&nbsp;the return, and&nbsp;<strong>e-verify<\/strong>&nbsp;it (usually via Aadhaar OTP) within&nbsp;30 days&nbsp;of filing \u2014 an unverified return is treated as if it was never filed.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h2 id=\"aioseo-due-dates-for-ay-2026-27-51\" class=\"wp-block-heading has-text-color has-link-color wp-elements-34e6f3545d254ec53a6e29634691f484\" style=\"color:#032287\"><strong>Due Dates for AY 2026-27<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Subject to notifications issued by the Income Tax Department, the due dates for AY 2026\u201327 are generally:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Salaried investors filing ITR-2<\/strong>&nbsp;(capital gains&nbsp;only, no business income):&nbsp;<strong>31&nbsp;July 2026<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Traders filing ITR-3 without a tax audit<\/strong>&nbsp;(F&amp;O\/intraday income):&nbsp;<strong>31&nbsp;August&nbsp;2026<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Taxpayers&nbsp;requiring&nbsp;a tax audit<\/strong>&nbsp;under Section 44AB:&nbsp;<strong>31&nbsp;October 2026<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A&nbsp;<strong>belated return<\/strong>&nbsp;can&nbsp;still be filed up to&nbsp;<strong>31&nbsp;December 2026<\/strong>, but you lose the right to carry forward capital or business losses if you miss the original due date.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Missing the deadline also attracts a late fee under Section 234F \u2014 \u20b95,000, or \u20b91,000 if your total income is below \u20b95 lakh \u2014 plus interest&nbsp;on any unpaid tax.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investors should verify the latest&nbsp;due dates on the Income Tax Department website before filing.<\/p>\n\n\n\n<h2 id=\"aioseo-do-you-need-a-tax-audit-63\" class=\"wp-block-heading has-text-color has-link-color wp-elements-fbd788b30ffc4a8263411175b3ad0e53\" style=\"color:#032287\"><strong>Do You Need a Tax Audit?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This&nbsp;is a genuinely technical area, and the rules depend on your turnover, the proportion of digital transactions, whether&nbsp;you&#8217;ve&nbsp;reported a loss, and your history with presumptive taxation under Section 44AD. As a general guide:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If your F&amp;O\/intraday business turnover is&nbsp;high&nbsp;Tax audit requirements under Section 44AB depend on several factors, including turnover, the nature of transactions, and applicable provisions of the Income Tax Act. As these requirements may change from time to time, investors should refer to the latest&nbsp;Income Tax guidelines or consult a Chartered Accountant to&nbsp;determine&nbsp;whether a tax audit applies.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Even at lower turnover, an audit can&nbsp;still become necessary if you report a loss (or profit below the presumptive rate) and you had opted for presumptive taxation in a recent preceding year but are not opting for it&nbsp;this&nbsp;year.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Failing to get&nbsp;a mandatory audit done attracts a penalty&nbsp;under Section 271B.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Because these thresholds and exceptions change with each Budget and depend heavily on your specific facts,&nbsp;it&#8217;s&nbsp;best&nbsp;to confirm your exact position with a Chartered Accountant rather than relying on a general rule of thumb.&nbsp;<\/p>\n\n\n\n<h2 id=\"aioseo-common-mistakes-to-avoid-72\" class=\"wp-block-heading has-text-color has-link-color wp-elements-c8dd827b9d8a475ba15f1bd7c45bfdd5\" style=\"color:#032287\"><strong>Common Mistakes to Avoid<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c&nbsp;<strong>Assuming a small profit&nbsp;isn&#8217;t&nbsp;worth mentioning.<\/strong>&nbsp;Every trade you make, however small, is already visible to the tax department through your AIS. Leaving it out of your return&nbsp;doesn&#8217;t&nbsp;make it disappear \u2014 it just&nbsp;creates a gap between what the department already knows and what&nbsp;you&#8217;ve&nbsp;declared, which is exactly the kind of gap that draws attention.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c&nbsp;<strong>Filing ITR-1 despite having a short-term gain.<\/strong>&nbsp;Taxpayers reporting short-term capital gains may&nbsp;generally be&nbsp;required to file ITR-2 or another applicable form, depending on their overall income and eligibility.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c&nbsp;<strong>Filing F&amp;O profit or loss under Capital Gains instead of Business Income.<\/strong>&nbsp;These are two different tax regimes with different rates and rules. F&amp;O belongs in Schedule Business\/Profession under ITR-3, never in the capital gains schedule \u2014 mixing them up is one of the fastest&nbsp;ways to end up with a defective return.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c&nbsp;<strong>Paying tax on the entire LTCG amount.<\/strong>&nbsp;The first&nbsp;\u20b91.25 lakh of long-term gains in a year is exempt \u2014&nbsp;it&#8217;s&nbsp;easy to overlook&nbsp;this&nbsp;and calculate tax on the whole gain instead of just&nbsp;the amount above the threshold.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c&nbsp;<strong>Trying to adjust&nbsp;intraday losses against&nbsp;F&amp;O profits, salary, or capital gains.<\/strong>&nbsp;Speculative losses live in their own bucket \u2014 they can&nbsp;only reduce speculative gains, nothing else.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c&nbsp;<strong>Leaving out&nbsp;brokerage and&nbsp;STT as expenses.<\/strong>&nbsp;If&nbsp;you&#8217;re&nbsp;reporting F&amp;O or intraday income as business income, these trading costs are genuine, deductible expenses \u2014 skipping them&nbsp;only inflates your taxable profit unnecessarily.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c&nbsp;<strong>Treating the due date as a soft deadline.<\/strong>&nbsp;Beyond the late fee, filing after the due date can permanently cost&nbsp;you the ability&nbsp;to carry forward&nbsp;this&nbsp;year&#8217;s losses into future years \u2014 a consequence&nbsp;that&#8217;s&nbsp;often far more expensive than the fee itself.&nbsp;<\/p>\n\n\n\n<h2 id=\"aioseo-conclusion-80\" class=\"wp-block-heading has-text-color has-link-color wp-elements-f559cb97e427b75e4ab81f0df272cee6\" style=\"color:#032287\"><strong>Conclusion<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Reporting stock market income correctly comes down to&nbsp;identifying&nbsp;which of the three categories your activity&nbsp;falls into \u2014 capital gains, speculative business income, or non-speculative business income \u2014 and using the matching ITR form and schedule.&nbsp;Delivery-based investing is&nbsp;generally simpler&nbsp;to report than business income from intraday or F&amp;O trading, provided the applicable capital gains schedules are completed correctly.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When in doubt \u2014 especially around tax audit applicability&nbsp;or complex loss set-offs \u2014 it&#8217;s worth consulting a qualified Chartered Accountant before you file, since an incorrect ITR form or a missed schedule can lead to a defective return notice or a lost&nbsp;opportunity&nbsp;to carry forward losses.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\">Did you find this interesting?<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc?typeform-source=navia.co.in\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png\" alt=\"yes or no feedback form\" class=\"wp-image-8335\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 id=\"aioseo-frequently-asked-question-86\" class=\"wp-block-heading\">Frequently Asked Question<\/h2>\n\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-f5692f79-051a-4423-94d8-9158fcce103e\" data-mobilecollapse=\"true\" data-desktopcollapse=\"true\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-0-f5692f79-051a-4423-94d8-9158fcce103e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-f5692f79-051a-4423-94d8-9158fcce103e\" style=\"color: #000000; \"><strong>Do I have to pay tax on\u00a0stock market profits even if TDS or\u00a0STT was already deducted?<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-0-f5692f79-051a-4423-94d8-9158fcce103e\">\n\n<p class=\"wp-block-paragraph\">Yes.\u00a0STT is a transaction-level tax and is separate from income tax. You\u00a0still need to calculate the capital gain or business income and pay income tax on it, after\u00a0adjusting for\u00a0any TDS already deducted.<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-6c062e67-c3bb-45f0-9663-899e4a631df9\" data-mobilecollapse=\"true\" data-desktopcollapse=\"true\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-0-6c062e67-c3bb-45f0-9663-899e4a631df9\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-6c062e67-c3bb-45f0-9663-899e4a631df9\" style=\"color: #000000; \"><strong><strong>Which ITR form should a salaried person use if they only invest in shares and mutual funds?<\/strong><\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-0-6c062e67-c3bb-45f0-9663-899e4a631df9\">\n\n<p class=\"wp-block-paragraph\">In many cases, eligible salaried investors reporting capital gains without business income may file ITR-2. The\u00a0appropriate form\u00a0depends on the taxpayer&#8217;s overall income and eligibility criteria for the relevant assessment year.<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-f4df9b17-74c1-469a-85fe-169d0fb259af\" data-mobilecollapse=\"true\" data-desktopcollapse=\"true\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-0-f4df9b17-74c1-469a-85fe-169d0fb259af\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-f4df9b17-74c1-469a-85fe-169d0fb259af\" style=\"color: #000000; \"><strong><strong><strong>Is intraday trading taxed the same way as\u00a0delivery-based investing?<\/strong><\/strong><\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-0-f4df9b17-74c1-469a-85fe-169d0fb259af\">\n\n<p class=\"wp-block-paragraph\">No. Delivery-based investing is taxed as capital gains at flat STCG\/LTCG rates. Intraday trading is taxed as speculative business income at your regular income tax slab rate.<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-a37eb4f8-e0f4-40ad-acd2-d87505c9b320\" data-mobilecollapse=\"true\" data-desktopcollapse=\"true\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-0-a37eb4f8-e0f4-40ad-acd2-d87505c9b320\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-a37eb4f8-e0f4-40ad-acd2-d87505c9b320\" style=\"color: #000000; \"><strong><strong><strong><strong>Can I set off my F&amp;O trading loss against\u00a0my salary income?<\/strong>\u00a0<\/strong><\/strong><\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-0-a37eb4f8-e0f4-40ad-acd2-d87505c9b320\">\n\n<p class=\"wp-block-paragraph\">Generally, no.\u00a0F&amp;O losses (non-speculative business losses) can be set off against\u00a0most\u00a0other income heads, but not\u00a0typically\u00a0against\u00a0salary income in the same year.<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-e8fbdb65-0fa1-49e7-9813-0c06ac314f6d\" data-mobilecollapse=\"true\" data-desktopcollapse=\"true\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-0-e8fbdb65-0fa1-49e7-9813-0c06ac314f6d\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e8fbdb65-0fa1-49e7-9813-0c06ac314f6d\" style=\"color: #000000; \"><strong><strong><strong><strong><strong>What happens if I\u00a0don&#8217;t\u00a0report small\u00a0stock market gains in my ITR?<\/strong><\/strong><\/strong><\/strong><\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-0-e8fbdb65-0fa1-49e7-9813-0c06ac314f6d\">\n\n<p class=\"wp-block-paragraph\">Even small\u00a0transactions are reported by your\u00a0broker\u00a0to the Income Tax Department through the AIS. An unreported gain can create a mismatch and may result in a notice, regardless of how small the amount is.\u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-39b474e7-bb5f-446d-b0c4-8e960a1bbe1f\" data-mobilecollapse=\"true\" data-desktopcollapse=\"true\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-0-39b474e7-bb5f-446d-b0c4-8e960a1bbe1f\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-39b474e7-bb5f-446d-b0c4-8e960a1bbe1f\" style=\"color: #000000; \"><strong><strong><strong><strong><strong><strong>Do I need a Chartered Accountant to file my ITR if I trade in F&amp;O?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-0-39b474e7-bb5f-446d-b0c4-8e960a1bbe1f\">\n\n<p class=\"wp-block-paragraph\">It&#8217;s\u00a0not always mandatory, but if a tax audit applies to your situation,\u00a0only a\u00a0practising\u00a0Chartered Accountant can conduct it. Given the complexity\u00a0of turnover calculation and audit thresholds, professional guidance is\u00a0generally advisable\u00a0for active F&amp;O traders.<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>DISCLAIMER:&nbsp;This&nbsp;article is intended for general educational purposes&nbsp;only and does not constitute tax, legal, or investment advice. Tax rates, exemption limits, ITR forms, and due dates are subject to change through Finance Bills and government notifications. Please verify the latest&nbsp;provisions on the official Income Tax Department website and consult a qualified Chartered Accountant or tax professional before filing your return or making any investment decision. Investments in securities markets are subject to market risks; please read all scheme-related documents carefully.&nbsp;Tax provisions referred to in this article are based on publicly available information applicable to AY 2026\u201327 and may be amended through future Finance Acts, CBDT notifications, or judicial interpretations.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Full disclaimer:&nbsp;<\/strong><a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>https:\/\/bit.ly\/naviadisclaimer<\/strong><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you bought or sold shares, mutual funds, or F&amp;O contracts during FY 2025-26, many of these transactions may be reflected in your Annual Information&nbsp;Statement (AIS) and other tax records available on the Income Tax e-filing portal. It is therefore important to report your income correctly in your Income Tax Return (ITR).&nbsp; In&nbsp;this&nbsp;blog let us&nbsp;break [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18255,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[2],"tags":[1176,11,428,1172,21,1171,1102,1173,1174,1175,1177,45],"class_list":["post-18238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments","tag-ais","tag-financial-goals","tag-income","tag-incometax","tag-investments","tag-itr","tag-itr-filing","tag-stockmarket","tag-stockmarketincome","tag-stocks","tag-stt","tag-trading"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/Howtoshowstockmarketinco.jpeg","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/Howtoshowstockmarketinco.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/18238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=18238"}],"version-history":[{"count":8,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/18238\/revisions"}],"predecessor-version":[{"id":18258,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/18238\/revisions\/18258"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/18255"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=18238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=18238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=18238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}