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

[diosys]

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.

Dear Gandhi,

Books are required to be kept of one's income is greater than Rs. 1.2 Lacs or if you wish to claim losses....It has nothing to do with your turnover....

So i would suggest maintain books

 

[kapil123]

Dear Dio

While maintaining the books of accounts, do we have to maintain the books pertaining to the trading only. Or, should every bank account / other transactions should also be included with it.

Regards,

Kapil

 

[kumark]

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....

Hi Diosys,

Sorry to trouble again..

1 .I didnt got your points on "cannot set off busniess income loss with your salary income...." this does mean i cant add my loses to the profit earned from intra day trading & reduce the taxable profit ?

2. you mentioned if the stock value is less than cost at march 31 ..but i am doing intardy trading and wont hold any stocks on end of day (3 Pm)...

i mainly do Intraady Margin trading..if i get any Profits they are less than 5000/-

3. can we get any rebates on intraday transactions...(STT etc)

Regards

Kumar

 

[diosys]

Dear Dio

While maintaining the books of accounts, do we have to maintain the books pertaining to the trading only. Or, should every bank account / other transactions should also be included with it.

Regards,

Kapil

Dear Kapil,

Once books are required to be made....then it has to complete in all aspects....otherwise it may amount to concealment of facts and make you liable for penalty proceeding.

In any case ALWAYS PREPARE YOUR BOOKS OF ACCOUNTS !!! EVERYONE !!! I BEG OF YOU ALL !!!

 

[diosys]

Hi Diosys,

Sorry to trouble again..

1 .I didnt got your points on "cannot set off busniess income loss with your salary income...." this does mean i cant add my loses to the profit earned from intra day trading & reduce the taxable profit ?

2. you mentioned if the stock value is less than cost at march 31 ..but i am doing intardy trading and wont hold any stocks on end of day (3 Pm)...

i mainly do Intraady Margin trading..if i get any Profits they are less than 5000/-

3. can we get any rebates on intraday transactions...(STT etc)

Regards

Kumar

Dear Kumar,

What i meant was that if there is loss in business income and income from salary then they cannot be set off in between them to lower your tax outgo..

If you do not have any closing stock then there is no benefit which accrues to you....

Plus you would NOT get any rebates of STT etc...

 

[sangfroid22]

Tax issues.

Hi fellow traders,

I am Graduate Student and I've started trading from this FY. My only source of income is monthly allowance from parents and profit proceeds from Stocks. I've made profits and losses as well.

So, do I need to file my returns.

As far as I know, if the income is below 1.5 lacs, filing is not required.

If I wish to file it, what is the relevant ITR form for it?

Help appreciated.

Sangfroid22

 

[diosys]

Re: Tax issues.

Hi fellow traders,

I am Graduate Student and I've started trading from this FY. My only source of income is monthly allowance from parents and profit proceeds from Stocks. I've made profits and losses as well.

So, do I need to file my returns.

As far as I know, if the income is below 1.5 lacs, filing is not required.

If I wish to file it, what is the relevant ITR form for it?

Help appreciated.

Sangfroid22

Dear Sang,

You are right in stating that no ITR is required if income below 1.5 lacs...may i make it abundantly clear....it is gross income and not after claiming deductions under section 80C.....

If you do use an ITR then use ITR-4 for business trading....

 

[vpk]

Hi diosys,

I have icici trading a/c.

Last financialy year i may have got around 10-15k profit.

1. How do i get statement how much exactly i have profit (after loss deduction), for that financial year. I tried to get bill statment in icici customer care, but it only shows debit/credit transactions.

2. I am salaried employee, so which ITR i should fill and how to pay tax to government?

Thanks
Vikram

 

[diosys]

Hi diosys,

I have icici trading a/c.

Last financialy year i may have got around 10-15k profit.

1. How do i get statement how much exactly i have profit (after loss deduction), for that financial year. I tried to get bill statment in icici customer care, but it only shows debit/credit transactions.

2. I am salaried employee, so which ITR i should fill and how to pay tax to government?

Thanks
Vikram

dear Vikram....

In order to determine your ITR i must know whether you did intraday or the income is from investments be it very short term.....If intraday then business income and ITR-4 to be used....

For the profit quantum part that you can devise only from your ICICI ledger...i do not use ICICI hence would not be able to help you much with it....

 

[vpk]

dear Vikram....

In order to determine your ITR i must know whether you did intraday or the income is from investments be it very short term.....If intraday then business income and ITR-4 to be used....

For the profit quantum part that you can devise only from your ICICI ledger...i do not use ICICI hence would not be able to help you much with it....

Dear Diosys,

I have done intraday very few times , say 4-5 times, with profit and loss, it should come null profit/loss,

and rest is short term trading. so which ITR i should use ?

Regards
Vikram