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The Real Tax Talk of 2025: What Traders Can Learn from the ITR Maze

Earned Rs 1.2 lakh intraday, Rs 2.5 lakh STCG from Stocks. Do I Need to File ITR in AY 2025-26?

Stock traders are some of the most alert people on the planet. One market fluctuation, and they act. But when it comes to Income Tax Returns (ITR), even the sharpest trader sometimes misses the cue.

Let’s talk real. If you earned ₹1.2 lakh from intraday trading and ₹2.5 lakh from short-term capital gains (STCG) this year, do you really need to file an ITR for AY 2025–26?

The short answer? Absolutely, yes.
The long answer? Read on.

Intraday Trading ≠ Investment. It’s Business. Speculative Business.

Intraday trades—buying and selling stocks within the same day—aren’t seen as a hobby by the Income Tax Department. They’re business.

That means you’re now considered a speculative business owner, and your profits or even losses must be reported under “Profits and Gains from Business or Profession.” Whether your intraday profit is ₹10,000 or ₹10 lakh, you’re required to file ITR-3.

This isn’t a loophole. It’s the law. And missing it can lead to notices, scrutiny, and missed opportunities to carry forward losses for future gain.

STCG: Don't Let the “Short” Fool You

Short-Term Capital Gains (STCG) from shares you sold within a year? Those aren’t exempt, even if your income is under ₹2.5 lakh.

From July 23, 2024, the STCG tax has jumped to 20%. Before that, it was 15%. This is serious money, and if you don’t disclose it in your ITR, expect trouble knocking.

Even if you're under the basic exemption limit, the filing is mandatory—especially under Section 111A, which imposes a flat tax rate on these gains.

New Tax Trends You Can’t Ignore in 2025

Digital is the new normal, and the IT Department is catching up fast. Here are the top trends reshaping compliance this year:

• New ITR Forms (1 to 4): Redesigned, but packed with new disclosures.
• Crypto, EV, and Travel Declarations: Spent more than ₹10 lakh on an EV or ₹2 lakh on a foreign trip? You’d better declare it.
• UPI & QR Sales: Business income via digital means? Expect questions on it.

From Confusion to Clarity: Why This Matters to Digital Marketers Too

This blog isn’t just for stock traders. It’s a wake-up call for:

• Freelancers earning ad revenue or affiliate income
• Influencers receiving crypto payments
• Digital marketers running dropshipping stores or paid newsletter platforms

If you’re dabbling in digital earnings, consider this your compliance checkpoint. Ignoring the right ITR form can be as bad as ignoring a Google update in SEO—except the penalties are heavier.

Tips for Smart Tax Handling in 2025

1. File even if income is below ₹2.5L – especially if capital gains or trading is involved.
2. Always choose the correct ITR form – ITR-3 for business/trading, ITR-2 for STCG-only scenarios.
3. Offset your STCG with losses – but only if you declare them first.
4. Track expenses – brokerage, internet bills, subscriptions can be business expenses.
5. Start early – the non-audit due date is 31st July 2025. Don’t wait for penalties to teach you.

Final Word: Transparency is the New Strategy

In the world of stocks and startups, everyone’s hunting for the next big win. But the biggest power move you can make this season? Clean, timely, strategic tax filing.

Don’t gamble with compliance. File it right. File it now.

Need help figuring out the best ITR strategy for your stock trades, digital side hustles, or influencer income?

Contact Santosh Patil at santoshpatil@alltaxfin.com
Call or WhatsApp: 9769201316
Let the experts at Alliance Tax Experts handle your tax maze while you focus on your financial game.

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