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News18
16 hours ago
- Business
- News18
How To Report Your Stock Market Income In ITR? An Income Tax Expert Explains
Last Updated: ITR Filing 2025 has begun with 86,482 returns already filed using Excel Utilities. Online filing is yet to start. CA Suresh Surana explains how to report your stock market income. Stock Market Income & ITR Filing 2025: The income tax return (ITR) filing season for the financial year 2024-25 (assessment year 2025-26) has begun, with the income tax department enabling Excel Utilities. A total of 86,482 returns have been filed so far using Excel Utilities, according to the official income tax data. Online ITR filing is yet to start. If you are a salaried individual, income tax experts advise you to wait for your Form 16 before filing the income tax return. As stock market participation has increased in the past few years, many salaried individuals are wondering how to correctly report their share market income along with salary in ITR 2025. Types of Stock Market Income & Tax Treatment Different types of stock market transactions — such as delivery-based investments, intraday trades, and futures & options (F&O) — are treated differently under tax laws, which also impacts the choice of ITR form. Delivery-based listed stock investments held for more than 12 months are treated as long-term capital gains (LTCG) and are taxed at 10% (enhanced to 12.5% w.e.f. July 23, 2024) on gains exceeding Rs 1.25 lakh under Section 112A of the Income Tax Act, 1961. If such stocks are sold within 12 months, they attract short-term capital gains (STCG) tax at a flat rate of 15% (enhanced to 20% w.e.f. July 23, 2024) under Section 111A. Dividend income Further, the treatment of income/losses with respect to listed shares would also depend on the purpose of holding, nature of business or investments, past treatment, and relevant circulars/notifications issued by the income-tax department. Which ITR Form To Choose? The selection of the appropriate income tax return (ITR) form is determined by the nature of income earned, including stock market transactions. ITR-1: Simple salaried income can be filed under ITR-1. It is important to note that LTCG up to Rs 1.25 lakh from shares can also be filed in ITR-1 itself, as per the notified forms this year. ITR-2: In cases where income arises solely from capital gains — whether short-term or long-term — on delivery-based equity investments, ITR-2 may be applicable. This also applies when such capital gains are accompanied by income from salary, house property, or other sources, provided there is no income classified as business or professional income. ITR-3: For taxpayers engaged in trading activities such as futures and options (F&O) or intraday equity trades, the income is characterised as business income. Intraday equity trading income is considered speculative business income, whereas income from F&O is treated as non-speculative business income. In such cases, the correct form for filing is ITR-3, which is designed for taxpayers having income under the head 'Profits and Gains of Business or Profession'. ITR-4: Where the turnover from such trading activities remains within the prescribed limits (typically up to Rs 2/3 crore, as the case may be), and the taxpayer opts for presumptive taxation under Section 44AD, ITR-4 (Sugam) may be used. This option is available only to resident individuals, HUFs, or firms (excluding LLPs), who do not maintain regular books of accounts and satisfy all other eligibility conditions under the presumptive taxation scheme. It is important to note that ITR-4 is not applicable in cases where the taxpayer has income from capital gains (except LTCG up to Rs 1.25 lakh under Section 112A), where business turnover exceeds Rs 2/3 crore, or where the presumptive scheme is otherwise inapplicable. • Capital Gains from Delivery-Based Trading Income arising from delivery-based trading must be reported under the 'Capital Gains' schedule of the ITR. Details such as ISIN, name of the company, dates of acquisition and sale, cost of acquisition, sale consideration, and transaction-related expenses (e.g., brokerage) must be provided. Long-term capital gains exceeding Rs 1.25 lakh are taxed at 10% (which was increased to 12.5% w.e.f. July 23, 2024), while short-term capital gains are taxed at 15% (enhanced to 20% w.e.f. July 23, 2024) under Section 111A. Many brokerage platforms offer downloadable, tax-compliant capital gains reports to facilitate accurate reporting. • Intraday Trading as Speculative Income Income from intraday trading is treated as speculative business income and must be reported under the 'Profits and Gains from Business or Profession' schedule. The gross turnover, defined as the aggregate of profits and losses from such trades, must be disclosed, along with a detailed profit and loss statement. Allowable deductions include expenses such as internet charges, advisory fees, brokerage, etc. If the turnover exceeds Rs 1 crore (or Rs 10 crore in certain specified cases), or if the presumptive taxation scheme is not opted for and declared profits fall below the prescribed threshold, a tax audit under Section 44AB may be required. • Futures and Options (F&O) Trading as Non-Speculative Business Income Income from F&O trading is classified as non-speculative business income and must also be reported under the 'Profits and Gains from Business or Profession' schedule. A detailed profit and loss account must be prepared, with turnover computed as the total of absolute profits and losses. Where turnover is below Rs 2/3 crore (as applicable), the presumptive taxation scheme under Section 44AD may be availed by declaring at least 6% or 8% of turnover as profit. In cases where presumptive taxation is not adopted and profits are low, tax audit requirements may arise. • Dividend Income Dividend income must be reported under the 'Income from Other Sources' schedule. The gross amount received should be disclosed and matched with the data reflected in Form 26AS and the Annual Information Statement (AIS)/Taxpayer Information Summary (TIS). top videos View all A deduction of interest expenditure incurred for the purpose of earning such dividend income is allowed under Section 57, subject to a cap of 20% of the dividend amount. The deadline to file income tax return is September 15, 2025, for non-audit ITRs. For those requiring audit, it is October 31, 2025. About the Author Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : income tax income tax return ITR filing stock market Location : New Delhi, India, India First Published: June 03, 2025, 11:16 IST News business » tax How To Report Your Stock Market Income In ITR? An Income Tax Expert Explains
India Today
5 days ago
- Business
- India Today
Waiting for Form 16? Here's when will you get it and what to check
Form 16 is an important document for salaried people. It's a certificate issued by the employer, showing how much salary was paid and how much tax was deducted during the year. Many employees wait for this before filing their Income Tax Return (ITR). Wondering when it'll arrive? Here's what you need to per income tax rules, employers must file their e-TDS return for the last quarter (January–March) of the financial year by May 31. Once this is done, they have 15 days to issue Form 16. So, the last date to issue Form 16 is latest by June to CA (Dr) Suresh Surana, "Salaried employees can expect to receive Form 16 for the Financial Year 2024–25 on or before June 15, 2025, in accordance with Rule 31(1)(a) of the Income-tax Rules, 1962. Employers are mandated to issue Form 16 after filing the TDS return in Form 24Q for the fourth quarter, which is due by May 31, 2025."WHO WILL GET FORM 16? Employers are required to issue Form 16 to employees if they've deducted TDS from their salary. All salaried individuals with tax deductions are eligible to receive as per FY 2024–25 rules, no tax is payable under the new regime for income up to Rs 7 lakh, and under the old regime for income up to Rs5 lakh. So, if your salary is below these limits and no TDS was deducted, the employer may not issue Form INSIDE FORM 16?advertisementWhen it comes to filing your ITR, Form 16 plays a key role. CA Surana said, "Form 16 is a certificate of tax deducted at source (TDS) on salary and serves as a key document for filing income tax returns. It provides a detailed summary of salary paid and TDS deducted, enabling employees to accurately file their Income Tax Return (ITR) for Assessment Year 2025–26, the extended due date for which is 15 September 2025 (Circular No. 6 of 2025 dated 27 May 2025)."Form 16 consists of two parts. Part A shows quarterly details of salary paid and TDS deducted by the employer. It also includes the PAN and TAN of the employer, your PAN, and other related B gives a breakdown of your salary, exemptions, and deductions based on the investment declaration you shared and proofs you submitted. It also shows the final taxable income after considering all eligible deductions and FORM 16 PASSWORD PROTECTED?Form 16 is usually sent as a password-protected file. The password is often a combination of your PAN in either lowercase or uppercase and your date of birth in the format DDMMYYYY or DD/MM/YYYY. Your employer will usually let you know the exact format to use when they send you the in all, Form 16 is an essential piece in your tax puzzle. If your employer deducted TDS, you should get it by 15 June. Make sure all the information in it matches your Watch
India Today
6 days ago
- Business
- India Today
Filing ITR late? You can earn 33% more interest on tax refunds this year
The Income Tax Department has extended the last date for filing Income Tax Returns (ITR) for the financial year 2024–25. Instead of the usual July 31 deadline, taxpayers now have time until September 15, 2025. While this comes as a relief for many, it also means that people expecting refunds may get more money, thanks to the interest paid by the tax THE REFUND AMOUNT MAY BE HIGHERIf you've paid more tax—through TDS, advance tax, or self-assessment—than your actual tax liability, you're eligible for a refund. Under Section 244A of the Income Tax Act, the IT Department pays 0.5% interest per month on any excess tax interest starts from April 1 of the assessment year and continues until your refund is issued. Since the ITR deadline has been pushed by 1.5 months, and if your refund is processed in October, you'll end up getting interest for two extra months. According to CA (Dr) Suresh Surana, 'With the ITR filing deadline for FY 2024-25 (AY 2025-26) now extended to 15 September 2025, taxpayers may see an increase in refund of about 33% in the interest amount received on their tax refunds provided the returns are filed by September 15, 2025 and the corresponding refunds are assumed to be processed in October 2025.'advertisementHe added, 'This is because Section 244A allows for simple interest at 0.5% per month (6% annually) on refunds. The additional 1.5 months between the usual deadline of July 31 and the revised deadline of September 15 increases the interest accrual period. If the refund is processed in October, the interest component alone could rise by about 33% (i.e. interest would accrue for an additional 2 months) compared to a typical year. If the processing is delayed beyond October, the interest may increase even further.'BUT REMEMBER - THIS EXTRA INTEREST IS TAXABLEIt's important to note that the interest you receive on your tax refund is taxable under 'Income from Other Sources' and must be reported in your from FY 2025–26, the revised Section 87A rebate ensures that salaried individuals earning up to Rs. 12.75 lakh and non-salaried individuals up to Rs. 12 lakh will have no tax liability under the new regime. This may help cushion the tax impact of the additional interest received,' noted DELAY FILING JUST TO EARN MORE INTERESTDespite the appeal of a bigger refund, experts warn against using the interest benefit as a reason to delay filing your return. 'While higher interest on refunds may appear attractive, it is still capped at 6% per annum,' said CA filing your return early means it's processed sooner, your refund arrives quicker, and you can put that money to better use Watch
India Today
7 days ago
- Business
- India Today
ITR deadline extension: Why it happened and what you need to do now
Here's a relief for taxpayers - the Central Board of Direct Taxes (CBDT) has extended the last date for filing income tax returns (ITRs) for the assessment year 2025–26. The earlier deadline of July 31, 2025 has now been pushed to September 15, DID THE CBDT EXTEND THE ITR DEADLINE?The main reason for this extension is the recent changes in the ITR forms. These forms have been updated with new layouts and extra details to make the process more transparent and accurate for taxpayers. But with these changes, the income tax department also needs more time to update its systems and make sure everything works to CA (Dr) Suresh Surana, 'The Central Board of Direct Taxes (CBDT) has vide Press release dated May 27, 2025 extended the due date for filing Income Tax Returns (ITRs) for Assessment Year 2025-26 from July 31, 2025 to September 15, 2025. This decision has been taken in view of significant structural and content changes in the ITR forms, which require additional time for system development and utility integration.' Further, Dr Surana explained that the TDS (Tax Deducted at Source) credits, which are important while filing your ITR, will only start appearing from early June. This left taxpayers with very little time to file returns before the earlier July-end said 'With TDS credits expected to reflect only in early June, the effective return filing window was limited. The extension aims to ensure a smooth and accurate filing process while addressing stakeholder concerns. It is expected that a formal notification would follow.'A STEP TOWARDS EASIER FILINGadvertisementThis move also fits into the government's long-term plan to modernise the income tax system. With new tech upgrades, automated tools, and smarter systems, filing taxes is expected to become quicker and easier for SHOULD YOU DO NOW?Even though the deadline to file your ITR has been extended to September 15, 2025, it's still wise to get started early. Waiting till the last minute often leads to unnecessary stress and by gathering all your income details. This includes your salary slips, interest from savings and fixed deposits, capital gains from investments, rental income, or any freelance or side calculate your total tax liability for the year and check how much tax you still owe. It's important to pay any remaining tax without delay, as the payment deadline hasn't changed. Delaying payment can lead to interest charges under Section 234B of the Income Tax can also update your bank account details, verify TDS credits once they start appearing, and check for any pre-filled information available on the income tax portal. Lastly, keep all your documents neatly organised so you're ready to file the moment the system is fully updated.
India Today
7 days ago
- Business
- India Today
Why the world's ultra-rich are looking for a Monaco address
Monaco's name comes from the ancient Greek word Monokos, meaning 'the Unique.' Fitting, isn't it? With more millionaires per square metre than anywhere else on Earth, and a coastline that looks like a scene from a Bond movie, Monaco has truly lived up to its ancient and more of the world's richest people are looking to move to Monaco or at least have an address there. But why is this tiny country, smaller than many cities, drawing so much interest from the ultra-rich?With its location on the French Riviera, its luxury lifestyle, and some very relaxed tax rules, Monaco has become a top choice for millionaires and billionaires from around the IN EVERY CORNERadvertisementMonaco's sun-drenched harbour is lined with luxury yachts that look more like floating mansions, while Lamborghinis, Rolls-Royces, and other supercars roam the may be the second-smallest country in the world, just after Vatican City, but it holds a very big place in the world of wealth. According to the World Bank, Monaco has a GDP per capita of $256,580.5 and a total GDP of just under $10 billion. This is far more than countries with much larger comparison, the United States has a GDP per capita of $82,769.4, and is the world's largest economy. This shows how rich Monaco's residents are. In fact, it is said that one out of every three people living in Monaco is a LAWS ATTRACT THE WEALTHYA big reason why so many wealthy people want to move to Monaco is because of its tax (Dr.) Suresh Surana explained that Monaco offers a very attractive setup for people with a high net worth. 'Monaco does not charge personal income tax for residents, except for French citizens due to a special agreement,' he added that there is no wealth tax and no capital gains tax either. Even when passing on assets, the rules are easy, spouses and children do not pay inheritance or gift tax, and others pay a maximum of 16%.He added that these benefits, along with political stability and a high standard of living, make Monaco a popular choice for the rich. 'It helps them protect and grow their wealth,' he BEHIND TAX-FREE STATUSWhy does Monaco not charge income tax? The answer lies in its Surana said the policy dates back to 1869. 'Prince Charles III removed personal income tax when the Monte Carlo Casino was set up. The state used the money from the casino to fund its expenses,' he move attracted many rich people to the country, helped build its economy, and earned it a reputation as a tax CAN LIVE IN MONACO?Not everyone can just pack their bags and move to Monaco. There are some steps to follow to become a resident and enjoy its tax are the basic requirements:Minimum age: You must be at least 16 years record: You need to show a police certificate proving you have no criminal to live: You must own or rent a home in Monaco. In some cases, you can stay with a close family member or show links through a company that owns a proof: You have to show that you have enough money to support yourself. This could be done with a bank letter or other financial spent in Monaco: You should live there for more than 183 days a year or have your main business there. You may also be eligible if you spend most of your year in who live there for less than six months need to provide extra documents to ELSE IS TAX LOW OR ZERO?Monaco is not the only place in the world with low or no personal income tax. There are several countries and territories that offer tax advantages and attract wealthy individuals, businesses, and are some examples:United Arab Emirates (UAE): No personal income tax or capital gains tax. Corporate tax began in 2023, but small businesses and free zones still enjoy No personal income tax on salaries or capital income. A 10% corporate tax applies to foreign No personal income tax. The government collects revenue through payroll taxes paid by employers, import duties, and Bahamas: No income tax, capital gains tax, or wealth Islands: No income tax, property tax, or capital gains No personal income tax, though there is a value-added tax (VAT).Kuwait: No personal income tax for places may sound ideal, but experts advise caution."It is pertinent to note that while low or zero-tax jurisdictions may offer significant fiscal advantages, individuals must exercise caution as aggressive tax residency planning can trigger scrutiny under anti-avoidance rules, exit tax provisions, or Controlled Foreign Corporation (CFC) regulations in their home country," said Dr. Reel
