Fire your tax related queries and i would get it solved!!!

[diosys]

Dear sir,
I am employee of PSU Bank.
I have a trading a/c.
I made intially losses upto 2,500 rs.
Now I made profit of Rs.4500/-ie a net profit of Rs.2000/-
My trades are intraday.
What is my Tax Liability on this?
Thank you sir.

Since you are an individual your tax liability cannot be determined until all of your income are known. For individual there is no flat rate of taxation....It is slab based. Hence you are taxed according to the income slab you fall in.

 

[raja1344]

Re: pls. reply me soon

Dear,

Not showing the investment in ITR is not a problem. The only problem is whether the income earned on such has been declared or not. Please clarify it...

If yet there has been no income earned on this then would suggest to withdraw all these and do a fresh investment in joint name with wife.

Hi diosys
thanks for your reply. As per your suggestion ,he has planned to premature withdraw all his bank fd and kvp,nsc certificates which total amount nearly 10 lakhs.his present plan is to invest in MIS for 9 lakhs jointly with his wife.
now, my question is -1. whether any problem will arise when this 10 lakhs amount will be deposited in his bank a/c
2.how this MIS investment will be shown in his next return.
3. the monthly amount of rs. 6000 from MIS is taxable or not .how it will be shown in return.
pls. inform me.
best rgds.
raja

 

[diosys]

Re: pls. reply me soon

Hi diosys
thanks for your reply. As per your suggestion ,he has planned to premature withdraw all his bank fd and kvp,nsc certificates which total amount nearly 10 lakhs.his present plan is to invest in MIS for 9 lakhs jointly with his wife.
now, my question is -1. whether any problem will arise when this 10 lakhs amount will be deposited in his bank a/c
2.how this MIS investment will be shown in his next return.
3. the monthly amount of rs. 6000 from MIS is taxable or not .how it will be shown in return.
pls. inform me.
best rgds.
raja

If the same needs to be deposited in the bank then my submission is to do it in very small tranches of 10,000 to 20,000 at one time....Just to avoid the one big entry and getting caught in the AIR...Though the method which i am telling is not a fool proof method but still better than one time depositing.

Since this money is not "black" then he can easily prove the same if the it required to be answered. Not showing investments in the ITR is not the thing...Plus in the earlier ITR's there was no column for showing the same also...Hence he need not worry that it has not been shown in his ITR.

Further also the MIS done neet not be shown in the ITR....

The income of MIS if received within a year (from equity scheme) would be taxable as short term at 10%

 

[raja1344]

Re: pls. reply me soon

If the same needs to be deposited in the bank then my submission is to do it in very small tranches of 10,000 to 20,000 at one time....Just to avoid the one big entry and getting caught in the AIR...Though the method which i am telling is not a fool proof method but still better than one time depositing.

Since this money is not "black" then he can easily prove the same if the it required to be answered. Not showing investments in the ITR is not the thing...Plus in the earlier ITR's there was no column for showing the same also...Hence he need not worry that it has not been shown in his ITR.

Further also the MIS done neet not be shown in the ITR....

The income of MIS if received within a year (from equity scheme) would be taxable as short term at 10%

Thanks Diosys
For your valuable information.the MIs is not equity linked ,it's post office Monthly income scheme.
Best rgds
Raja

 

[raja1344]

Re: pls. reply me soon

Thanks Diosys
For your valuable information.the MIs is not equity linked ,it's post office Monthly income scheme.
Best rgds
Raja

HI Diosys
I want to share more personal information with you.As per your suggesstion to deposit in smal amount probably will not be possible as my brother in law is a cronic kidney failure patient and his days are limited according to doctor.so my query is
1. if he deposits 10 lakhs at a time ,is it confirmed that IT will question him ,his physical condition will not allow him to attend IT dept.
2. pls. inform me a way so that IT will not ask my sister or demand any penalty from my sister in absense of my brother in law.can any gift from husband to wife avoid such situation.
3. if after six years of MIS my sister ( probaly in absense of her husband) withdraw the total amount from post office and deposit in her bank account ,can IT ask her anything?
pls. inform me.
Raja

 

[diosys]

Re: pls. reply me soon

Thanks Diosys
For your valuable information.the MIs is not equity linked ,it's post office Monthly income scheme.
Best rgds
Raja

Then in that case the appreciation would be taxable under income from other sources

 

[diosys]

Re: pls. reply me soon

HI Diosys
I want to share more personal information with you.As per your suggesstion to deposit in smal amount probably will not be possible as my brother in law is a cronic kidney failure patient and his days are limited according to doctor.so my query is
1. if he deposits 10 lakhs at a time ,is it confirmed that IT will question him ,his physical condition will not allow him to attend IT dept.
2. pls. inform me a way so that IT will not ask my sister or demand any penalty from my sister in absense of my brother in law.can any gift from husband to wife avoid such situation.
3. if after six years of MIS my sister ( probaly in absense of her husband) withdraw the total amount from post office and deposit in her bank account ,can IT ask her anything?
pls. inform me.
Raja

You can go ahead and deposit the full amount in the bank. It is not nessecary that these transactions are always scrutinised. Infact it is the other way round. Once a person is slected for scrutiny (can be for numerous reasons) then his AIR is looked into. I dont think there would be any problem in depositing the said amount as all of it is in white....

In the unfortunate demise of the husband the wealth of the husband dwells to the wife automatically unless there is an over riding will upon it. So there is no need to do a gift for the same.

That would be even better if the IT deptt wakes up after 6 years.... Whom would they assess ??

Unfortuanely the husband would have expired. The wife has shown the source through the will / transfer from the husband which they cannot touch. Hence it would be absolutely ok.

 

[raja1344]

Re: pls. reply me soon

You can go ahead and deposit the full amount in the bank. It is not nessecary that these transactions are always scrutinised. Infact it is the other way round. Once a person is slected for scrutiny (can be for numerous reasons) then his AIR is looked into. I dont think there would be any problem in depositing the said amount as all of it is in white....

In the unfortunate demise of the husband the wealth of the husband dwells to the wife automatically unless there is an over riding will upon it. So there is no need to do a gift for the same.

That would be even better if the IT deptt wakes up after 6 years.... Whom would they assess ??

Unfortuanely the husband would have expired. The wife has shown the source through the will / transfer from the husband which they cannot touch. Hence it would be absolutely ok.

Thanks Diosys
Many thanks for your suggestion.one more question as income from post office MIS is tax free , is it necessary to show it in return?
Best rgds
Raja

 

[muralim]

Hello Diosys,

I am a salaried emplyoee. I excersied ESOP option alloted to me in 2007 by taking a bank loan for the entire amount.
I recently sold my shares and settled the loan in full.

I have the following doubts.

1. Since I have sold the shares after 2 years I will not incur any long term captital gains tax. Right?
2. This loan might be treated as a personal loan. I have paid interest around 3.5 lacs for this loan. Can I claim any type Tax deduction for this interest paid? If so under what section would the caim be? Please clarify.

Thanks
Murali

 

[diosys]

Re: pls. reply me soon

Thanks Diosys
Many thanks for your suggestion.one more question as income from post office MIS is tax free , is it necessary to show it in return?
Best rgds
Raja

Yes. under Income claim to be exempt from tax.