Comment on Classifying Your Market Activity

Tushar Sharma commented on 09 Aug 2015, 05:43 PM

Thank you very much for all the informative articles. I have a few questions about filing my taxes.
I have just started investing and trading since Feb 2015. The money (Rs 7,00,000) was given to me by my father since he wants me to get involved in trading . He is a Government employee and does not have time to trade himself.
I have no other income since I am a student. I have incurred loss worth Rs 90,000.
1. Which ITR form should I use?
2. Should I show the Rs 7,00,000 that I have taken from father as my income or not? Or will it be treated as gift from family? We want to file legitimate returns and are not looking to divert my father’s funds in my name.
3. I have no income. I made a few profitable trades but mostly losses, (net loss = Rs 90,000). Should I show this as Short Term Capital Loss or loss in business. Trading is not my business and in the future we will be making Long term investments only once I get a job.
Thank you very much for all the hard work you are doing and the modules in Varsity have been very helpful. Thank you.

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