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

[pranayk]

Hi,
I have salaried taxable income of 4 Lakhs and income tax deducted at source by employer(PSU) is around RS 65000
Recently I have lost Rs 19Lakh in future tradng.
Can this loss also be clubbed with total income for income tax return filing, so that Rs. 65000 can be refunded?

 

[diosys]

How will you decide the cost of acquisition of a house 60 year back when there is no record available with the owner today?

You can take the fair value on 1-4-1981 or the original cost whichever is higher....Section 55(2)(b) of the IT ACT

 

[diosys]

Dear Diosys,

I hope you can give greater clarity on the following matter. I have read the other topics which cover this issue but I just wanted to confirm.

As I understand it 40 lakh and above turnover in derivatives requires audit, and that the total is calculated by adding up the net gain and loss figures. The futures part seems straightforward enough but is there something more required when calculating the options figures?

I think I read that for options the premium amount is also taken into account. For example, for the following nifty option trades what would be the correct figure?

Put option January bought 2000@90
Put option January sold 2000@300
Profit is 420000

Call option March bought 1000@100
Call option March sold 1000@80
Loss is 20000

So the final reckoning, is it 420000+20000 = 440000 or

is it 420000+20000+(2000*90)+(2000*300)+(1000*100)+(1000*80) = 1400000?

Anticipating your reply.

Thanks.

Your first eg is correct....440000 is correct...

 

[diosys]

Hi,
I have salaried taxable income of 4 Lakhs and income tax deducted at source by employer(PSU) is around RS 65000
Recently I have lost Rs 19Lakh in future tradng.
Can this loss also be clubbed with total income for income tax return filing, so that Rs. 65000 can be refunded?

I am sorry this set off is not allowed and you would need to carry forward the same and set off with the profit which happens in the next year....this can be carried forwarded for a maximum of 8 years.

 

[Pothunter]

Your first eg is correct....440000 is correct...

Thank you, Diosys. Your help is much appreciated.

 

[dipak_katariya]

only 440000....

 

[V FROM TCR]

You can take the fair value on 1-4-1981 or the original cost whichever is higher....Section 55(2)(b) of the IT ACT

HAI DIOSYS
i AM AN UNEMPLOYED.NOW I AM TRADING IN EQUITIES AND F&O.I BORROWING MONEY FROM MY FRIENDS AND RELATIVES.TRADING SHORT TERM AND GETTING ARROUND 5000 MONTH AVERAGE.IF IN FUTURE I GET INCOME FROM TRADING ABOVE 110000 P/A.HOW I MANAGE MY TAXES.I DONOT KNOW ABOUT TAXES.HENCE FUND TO TRADE IS BORROWING FROM OTHERS.
I AWAIT YOUR VALUABLE REPLY.

 

[diosys]

HAI DIOSYS
i AM AN UNEMPLOYED.NOW I AM TRADING IN EQUITIES AND F&O.I BORROWING MONEY FROM MY FRIENDS AND RELATIVES.TRADING SHORT TERM AND GETTING ARROUND 5000 MONTH AVERAGE.IF IN FUTURE I GET INCOME FROM TRADING ABOVE 110000 P/A.HOW I MANAGE MY TAXES.I DONOT KNOW ABOUT TAXES.HENCE FUND TO TRADE IS BORROWING FROM OTHERS.
I AWAIT YOUR VALUABLE REPLY.

Dear...

From the Fy 2008-09 this limit has been increased from 1.1 to 1.5.....so as and when you are about to cross then please post as there is no point giving medicine for the disease which is not there !!!

 

[share bull]

I have across some advisories earlier on structuring salaries. Shall appreciate if someone could advise on how to structure a CTC (cost to company) package of Rs. 40 lakhs in order to minimise the amount of tax.

Thanks.

 

[diosys]

I have across some advisories earlier on structuring salaries. Shall appreciate if someone could advise on how to structure a CTC (cost to company) package of Rs. 40 lakhs in order to minimise the amount of tax.

Thanks.

Dear Bull,

Please inform me the numbers of the advisor's who can substantially reduce the tax amount for a 40Lac Salary package cool

At this level of earning it can only be minimized to a very less extent which a person earning 40 Lacs would not even think of....

So about the business as usual and invest the maximum possible under 80C