Comment on Classifying Your Market Activity

Divya commented on 14 Jul 2017, 12:23 PM

Hi Sir,

I invest in shares for both long term and do short term trading as well – short term trades are all delivery based. ie I buy shares and hold them for 2-3 months and then sell them.No intraday or F&O activity.Till 2015 I used to do only long term trades and it is only since last year that I have started doing short term trading. Hence I am bit confused on how to show the profit/loss in ITR.

I am aware that I need to fill ITR2 based on my trading activity. For short term trades, I kept reinvesting the original amount+profit in the same stock.Eg in stock A,I invested 30000,after 3 months I sold it earning profit of 5000.Then I reinvested the same 35000 again in the same stock and earned 4000 profit.Then third time I reinvested the 39000 in same stock and made profit of 3000.I keep following same pattern for other stocks as well.

My query is – while declaring STCG,we have to mention invested amount and profit.So do I mention it as follows:
1. Investment – 30000 and profit – 12k or
2. Investment – 30k+35k+39k and profit – 12k

Please clarify

View the full comment thread »