I frequently trade in Sebi-registered and RBI-approved currency pairs (USD/INR, GBP/INR, EUR/INR) through the Zerodha app. In this financial year, my short-term gains have exceeded Rs 50,000. How should I file my ITR?
Amit Maheshwari Tax Partner, AKM Global: Under Section 43(5) of the Income-tax Act, 1961, trading in currency pairs like USD/INR, GBP/INR and EUR/INR is treated as non-speculative business income, taxable under ‘Profits and gains from business or profession’. This income, combined with your other income (salary, rental, interest), will be taxed as per your applicable slab rates, including surcharge and cess. For 2024-25, you must file your tax return by 31 July 2025. You can opt for presumptive taxation under Section 44AD, claiming 6% profit on total turnover, calculated by adding all gains and losses. If your actual profit is lower, you’ll need to maintain books of accounts and may require an audit by a chartered accountant.
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