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

[TraderRavi]

Even its not treated as business income, i think STCG can be adjusted if Total Taxable Income is less than Exemption limit. Any amount left over the limit will be taxed at 15%

Some links here , here and here

From those links
"a relief may be claimed in respect of such gain u/s 111A that if income excluding such STCG is less than Basic exemption limit , then STCG shall be reduced to the extent of difference b/w Basic exemp limit and Total inc(excluding STCG)...such remaining STCG shall be liable to tax @ 15% without any deduction under Chapter VIA.."

"If your total taxable income excluding STCG is below the threshold taxable limit, then such shortfall can be adjusted against STCG. The balance STCG will be taxed at 15% plus applicable surcharge and education cess."

Rant - Amazing that rules can be made so unnecesarily complicated. They put If-Else in hundreds of ways. What is so special about STCG that it should be 15% even if your income is more/less? Why should section VIA be not applicable to it?

Anyway, as a trader you can simplify it and treat it as business income. I think we are supposed to do that anyway as per Zerodha article.

Thanks for the links TracerBullet:clapping:

 

[Brill]

http://trak.in/tags/business/2012/07/09/tax-return-filing-futures-options-fo-trades/

above link explains turnover as below
Quote:
Turnover Calculation
Now, here comes the point calculation of turnover. Determination of turnover in case of F&O is one of the important factors for every individual for the income tax purpose. Turnover must be firstly calculated, in the manner explained below:

The total of positive and negative or favorable and unfavorable differences shall be taken as turnover.

Premium received on sale of options is to be included in turnover.

In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.


Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.

End Quote

Can you clarify? In Zerodha it includes one leg price also

Thanks.

 

[codename]

I had a doubt regarding taxation on gifted amount.
If I gift some amount every month to my parents (for their expenses) < 2.5lpa can I declare this as gift and get tax benefit on this amount (2.5L)?
I understand that my parents wont be taxed as I am gifting them the money, I would like to know if I still have to pay tax for the money that I will be gifting them? Thanks!

 

[Equity Investor]

I opened a Demat account in FY 2014 - 2015. Thus far in this financial year, i have done 9 Intraday trades, 14 BTST transactions and the rest are delivery based transactions(some delivery based stocks were sold in less than a week or month and holding some from those delivery based in current portfolio). I have decided to just do long term investment (hold stocks for more than an year) and avoid Intraday totally going forward in this Financial Year (FY 2014-2015). Can i be classified as "Investor" on this premise and just go ahead paying 10% tax? Is it allowed.

When i pull up the Capital gain statement from my Demat account provider, it is shown as Business Income (STT paid) and the taxable income is showed as 7045 at this point of time.

I would like to have an answer for the following given the details mentioned above:
(1)Having gone through this thread, i guess i would have to be classified as Trader (having done few intraday trades) and would be taxed at 30%. Is this assumption correct?
(2)Which ITR form do i have to fill in this scenario while filing returns next year.
(3)I have the internet connection invoices which can be attached to reduce the taxable income (7045 Rs). These invoices would amount to approx 6000 rupees. Does it means that my taxable income will be 7045-6000?

Thanks.

 

[mvkarthik]

Friends

I made around 6lks profits in infty options form feb 2014
How much tax I want to pay?
30% r 15%
thanks

 

[akrsrivastava]

Friends

I made around 6lks profits in infty options form feb 2014
How much tax I want to pay?
30% r 15%
thanks

What you want to pay is 0%. What you have to pay is totally another matter altogether.:lol:

 

[megapixel]

After ITR-4 ( F&O) filing online which documents to keep with me for future reference ?

Is it just the acknowledgement slip ITR V ? or the response received from CPC ?

I am doing it online with digital signature.

 

[vikdes]

Stamp duty exempt in 80C

I purshased flat for which I paid more than 3lac stamp duty and registration.
I know we can exempt this amount in 80C. But as 80C has cap, can we claim it for next financial year?

 

[Blackhole]

hi!

i am sorry, i still fail to understand the turnover concept....i never filed tax....always incurred loss only this year i am in profit.......

mytrades since april (110 trades in nifty and 36 in banknifty...both futures)
41 : prf of 210000.......average lots (8 lots)
69 : loss of -88000.... average lots (2 )
110

36(bn)

22 : loss of 90000 ...average lots(1)
14 : prf of 175000 ... average lots(4)


profits excluding STT

how to calcultae turnover..?
do i need to audit?
i am told that nowadays audit can be done by accountants other than CA?
how much audit cost in tier 2/3 cities?



sorry for repetitive question and thanks to all the members for reading and answering queries

 

[ethan hunt]

hi!

i am sorry, i still fail to understand the turnover concept....i never filed tax....always incurred loss only this year i am in profit.......

mytrades since april (110 trades in nifty and 36 in banknifty...both futures)
41 : prf of 210000.......average lots (8 lots)
69 : loss of -88000.... average lots (2 )
110

36(bn)

22 : loss of 90000 ...average lots(1)
14 : prf of 175000 ... average lots(4)


profits excluding STT

how to calcultae turnover..?
do i need to audit?
i am told that nowadays audit can be done by accountants other than CA?
how much audit cost in tier 2/3 cities?

sorry for repetitive question and thanks to all the members for reading and answering queries

T.O.= Add all the profit & loss figures (take absolute values, no minus for losses)
eg: Trade 1 profit of 100
Trade 2 loss of 90
Total T.O. = 190 for these 2 trades
Do similar for all the Futures trades.

If T.O. > 1 cr. = audit

If T.O. < 1 cr. & you have a loss in total (fno) & your total income > 2.50 lacs basic IT exemption slab (FY2014-15) = audit ; (ironic, isn’t it !)

If T.O. < 1 cr. & you have a loss in total (fno) & your total income < 2.50 lacs basic IT exemption slab (FY2014-15) = no audit

Audit cost heard in the range of 6-20K. You can find online CAs also who will do it if you send them the details. The figures have to be provided by you, do not expect them to go thru all your contract notes.

For option trades you have to add the premium received on sale of options also (This I do not understand, once we have opposite positon in an option we have profit / loss figure already then why add option premium also ??? Ideally premium should be added if we write the option & it expires worthless but the ICAI / CBDT does not understand it)

Caution: I suffer from bouts of amnesia, so better check with your CA.