I have earned over Rs 50,000 by trading in RBI-approved currency pairs. How should I file my ITR?

These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.

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.

Also read | If I already own a house, can I get capital gains tax exemption on a new property?


I’m a freelance writer and earn from both Indian and foreign clients. What are the key tax deductions that I can claim, and how should I report the foreign income that I earn in my income tax return?

Shubham Agrawal Senior Taxation Adviser, TaxFile.in: You can claim all professional expenses, such as research costs, office rent, telephone bills, and journal subscriptions, among others. Any legitimate expense that contributes to revenue generation is allowed. However, personal expenses not directly related to your writing work are not permitted. Taxpayers can claim deductions under Section 80G (up to Rs 1.5 lakh for investment in specified avenues), Section 80D (health insurance premiums), Section 80E (interest on education loan), Section 80G (donations to charity) and Section 80GG (rent paid for housing). The applicability of each of these depends on the tax regime chosen by you. As a freelancer, you could file taxes under Section 44ADA if your turnover does not exceed Rs 75 lakh. You can declare a notional profit for taxation, but it must be at least 50% of your total turnover. This is a scheme of presumptive taxation to help smaller taxpayers and reduce the burden of book-keeping for them. Foreign assets with signing authority need to be mentioned in the ITR in a separate schedule called Schedule Foreign Assets. In your case, if it is just foreign remittances, they can be clubbed with domestic revenue and can be shown as total turnover in the ITR. Please ensure that you keep the FIRC (Foreign Inward Remittance Certificate) issued by the bank on each remittance. This serves as a proof of source of foreign funds in case of any future tax queries.

Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com