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

[kumark]

Hi,

Wahts the Short term capital gain tax for Intra day (Reguler )

Also mentioned in one of the starting threads low Stack at close the Tax will be Low..Plz explain this...

 

[shravank30]

Hi

In the Annual Information report column of the ITR, should i include the total value of the shares transactions purchased during the year (delivery based) or only of the shares applied in the IPO ?

Thanks

Shravan

 

[diosys]

Thank you very much. My turnover as per your calculation it is very very less.
Kindly elucidate regarding book of accounts whether electronic book of accounts in PC in free format is permissible.

Dear Gandhi....

Any mode would do....provided it generates....

1.) Cash Book
2.) Ledger
3.) Day Book

 

[diosys]

Hi,

Wahts the Short term capital gain tax for Intra day (Reguler )

Also mentioned in one of the starting threads low Stack at close the Tax will be Low..Plz explain this...

Dear Kumar,

Please be clear for intra day players there is NO capital gain....it is purely business income and the rate of taxation would depend upon your other income...

What i meant by saying low stock is that once you are classified as a business income then you can value your holding at lower of cost or market value on every balance sheet date i.e 31st March....So it lowers your tax outgo for the year...

 

[diosys]

Hi

In the Annual Information report column of the ITR, should i include the total value of the shares transactions purchased during the year (delivery based) or only of the shares applied in the IPO ?

Thanks

Shravan

Dear Sharvan,

According to the plain reading of the line it means IPO only...

 

[lvgandhi]

Dear Gandhi....

Any mode would do....provided it generates....

1.) Cash Book
2.) Ledger
3.) Day Book

Should these have any particular format? Normally I enter trade details in excel sheet as per contract note which gives total earning or loss. Then I enter day wise so that monthly annual statements can be made. Is it OK?
One more query.
If I have income from FD interest, salary arrears say 2 laks and and losses from futures trading say 4 lakhs, how to calculate taxable income?

 

[diosys]

Should these have any particular format? Normally I enter trade details in excel sheet as per contract note which gives total earning or loss. Then I enter day wise so that monthly annual statements can be made. Is it OK?
One more query.
If I have income from FD interest, salary arrears say 2 laks and and losses from futures trading say 4 lakhs, how to calculate taxable income?

Salary income would be added with FD interest.....Loss of future to be carried forwarded to be set off with income of next year....

Excel does not suffice the requirements of Income Tax Act....get a part time accountant and get your books written in a proper accounting program like tally....believe me it would help you a lot in future....Excel would only add to confusion...

 

[kumark]

Dear Kumar,

Please be clear for intra day players there is NO capital gain....it is purely business income and the rate of taxation would depend upon your other income...

What i meant by saying low stock is that once you are classified as a business income then you can value your holding at lower of cost or market value on every balance sheet date i.e 31st March....So it lowers your tax outgo for the year...

hi diosys,

thanks for informing for intrday it will be buseness income not capital gain...

i am working in MNC.. started active trading from last 2 months (small trader )

but i still didnt got the point of Low stock .. can you provide an example..

it will be very Helpful as i dont want any confusion regarding taxes which my crete huge trouble later...


thanks again
kumar

 

[lvgandhi]

Salary income would be added with FD interest.....Loss of future to be carried forwarded to be set off with income of next year....

Excel does not suffice the requirements of Income Tax Act....get a part time accountant and get your books written in a proper accounting program like tally....believe me it would help you a lot in future....Excel would only add to confusion...

Thanks for the reply. I would like to know whether keeping books of accounts is mandatory if I trade in futures even if turnover is less than 40 lakhs or only if it is above 40 lakhs turnover.

 

[diosys]

hi diosys,

thanks for informing for intrday it will be buseness income not capital gain...

i am working in MNC.. started active trading from last 2 months (small trader )

but i still didnt got the point of Low stock .. can you provide an example..

it will be very Helpful as i dont want any confusion regarding taxes which my crete huge trouble later...


thanks again
kumar

Dear Kumar

First let me tell you that you cannot set off busniess income loss with your salary income....

That is one....Now for the closing stock thing...

As per Income tax rules stock is to be valued at cost or market value whichever is less...For eg you bought 100 HLL at 200 and on 31st Mar 100 HLL market value is 180 then you value your stock at 180 hence there is a decremental effect of 20....hence yor taxable profit goes down....