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

[Boona]

Hi Diosys

U are doing wonderful job...keep it up and thanx

My queries are

1. I intend to do intraday as well as swing, pos and LT delivery based trading in Cash and F&O. Iam a full time trader and I dont have any other income. The trading acc is with my wife who is working in a public sector. I have incurred losses in delivery based trading as well as intraday trading. How do we account for these since, trading is a prohibited activity as per my wife's employment contract goes. But the trading activity has been carried out by me and not by my wife. I fear to show these losses in her returns fearing that this may lead to other complications in her job. How do i claim these losses or how to carryforward these losses? These are done using my money though.

2. Now that i have realised point no:1, I intend to open a trading account in my name in Ventura or Geojit, suggest me how to open this account, interms of claiming other expenses such as telephone, bradband, STT, service tax, purchase of books, other incidentals etc. Will individual trading acc suffice or u want me to open a proprietary trading acc for which the formalities are more?

3. This year, i have not generated any income, except the losses as per point no:1 above, in my wife's trading acc with Geojit. Do i need to file IT returns for AY 2009-10? I have refunds to claim from IT dept for the AYs 2008-09 and 2007-08

4. What is the type of IT Form we shld use if I have speculative (intraday) as well as positional profit or losses, for filing IT returns in AY 2009-10?

Would be great if u can clarify each point...thanx a lot in advance

 

[diosys]

Hi Diosys

U are doing wonderful job...keep it up and thanx

My queries are

1. I intend to do intraday as well as swing, pos and LT delivery based trading in Cash and F&O. Iam a full time trader and I dont have any other income. The trading acc is with my wife who is working in a public sector. I have incurred losses in delivery based trading as well as intraday trading. How do we account for these since, trading is a prohibited activity as per my wife's employment contract goes. But the trading activity has been carried out by me and not by my wife. I fear to show these losses in her returns fearing that this may lead to other complications in her job. How do i claim these losses or how to carryforward these losses? These are done using my money though.

2. Now that i have realised point no:1, I intend to open a trading account in my name in Ventura or Geojit, suggest me how to open this account, interms of claiming other expenses such as telephone, bradband, STT, service tax, purchase of books, other incidentals etc. Will individual trading acc suffice or u want me to open a proprietary trading acc for which the formalities are more?

3. This year, i have not generated any income, except the losses as per point no:1 above, in my wife's trading acc with Geojit. Do i need to file IT returns for AY 2009-10? I have refunds to claim from IT dept for the AYs 2008-09 and 2007-08

4. What is the type of IT Form we shld use if I have speculative (intraday) as well as positional profit or losses, for filing IT returns in AY 2009-10?

Would be great if u can clarify each point...thanx a lot in advance

HAPPY DIWALI TO YOU !!!

Ans. 1) Is the demat in joint name or single name ??? I presume writing that the demat is in single name of your wife. Then my second question to you would be whether her employer requires her ITR to be submitted to the company or not ??? Generally it is not required....If the same is not required then for the past year show the loss in your wife's account and subsequently add yourself as a joint applicant in the demat and claim the loss in yours for peace of mind.
Moreover would also like to mention you that maintain two separate demat accounts. One for investment stocks and others for intraday....it would help you a lot with the Income Tax people. Since the trading is taxable as business income and investment as capital gain.

Ans. 2) It does not matter for claiming expenses that which type of trading account has been opened....You can claim such expenses against your income.

Ans. 3) It is very much needed (not mandatory) that you file your ITR each and every year even if at 0.

Ans. 4) you should use ITR-4.

 

[TFL]

Dear Dweep....

It does not matter how you transfer....there would be no tax impact on you relatives as there is no SALE.....In income tax to pay capital gain there has to be sale....it is gifting hence there is no capital gain....that is clear from there angle...

When you sell then the cost of the original purchaser becomes your cost....

How we can do this transfer ?
I am having a demat online trading account.
My Father is holding physical certificates, he have PAN Card but have no demat accounts.
What are the ways to transfer these shares to my account?

 

[diosys]

How we can do this transfer ?
I am having a demat online trading account.
My Father is holding physical certificates, he have PAN Card but have no demat accounts.
What are the ways to transfer these shares to my account?

There are two ways....

Either you re-materialize your holdings and then transfer OR your father can open a demat account and you can transfer the shares to his account.

 

[TFL]

There are two ways....

Either you re-materialize your holdings and then transfer OR your father can open a demat account and you can transfer the shares to his account.

haribird.

 

[rkgoyal_98]

Dear sir,


I want to ask if interest earned on certain accounts i.e. bonds, saving account, FDR can be adjusted agains the interest paid on personal loan from a commercial bank.

Rajeev

 

[Boona]

Thanx Diosys for ur quick reply

1. I just enquired with Geojit, abt adding myself as an additional holder. Seems it is not possible now and they want me to close the present account and open a new demat account in joint names. And also the trading acc can only be in single name. Now dont know how to account for these losses which have already been incurred in my wife's account, under me. Please guide..

2. I operate from my house and can u please let me know which are expenses which can be claimed for tax exemption?

3. Will file a return this year as per ur suggestion

4. In one of ur earlier posts in this same thread, u had mentioned that we need to file return in ITR-3. Now in the reply to my post, u had mentioned ITR-4. I dont have the required turnover of 40 lakhs for audit and hence please let me know which ITR form need to be used for filing IT returns for CY (PY 2008-09).

HAPPY DIWALI TO YOU !!!

Ans. 1) Is the demat in joint name or single name ??? I presume writing that the demat is in single name of your wife. Then my second question to you would be whether her employer requires her ITR to be submitted to the company or not ??? Generally it is not required....If the same is not required then for the past year show the loss in your wife's account and subsequently add yourself as a joint applicant in the demat and claim the loss in yours for peace of mind.
Moreover would also like to mention you that maintain two separate demat accounts. One for investment stocks and others for intraday....it would help you a lot with the Income Tax people. Since the trading is taxable as business income and investment as capital gain.

Ans. 2) It does not matter for claiming expenses that which type of trading account has been opened....You can claim such expenses against your income.

Ans. 3) It is very much needed (not mandatory) that you file your ITR each and every year even if at 0.

Ans. 4) you should use ITR-4.

 

[diosys]

haribird.

oh...so sorry hari....my mistake...I replied it the other way around...

In your case also the shares can be gifted to you by your father and you can the demat them for further sale at the exchange...

 

[diosys]

Thanx Diosys for ur quick reply

1. I just enquired with Geojit, abt adding myself as an additional holder. Seems it is not possible now and they want me to close the present account and open a new demat account in joint names. And also the trading acc can only be in single name. Now dont know how to account for these losses which have already been incurred in my wife's account, under me. Please guide..

2. I operate from my house and can u please let me know which are expenses which can be claimed for tax exemption?

3. Will file a return this year as per ur suggestion

4. In one of ur earlier posts in this same thread, u had mentioned that we need to file return in ITR-3. Now in the reply to my post, u had mentioned ITR-4. I dont have the required turnover of 40 lakhs for audit and hence please let me know which ITR form need to be used for filing IT returns for CY (PY 2008-09).

Ans. 1) Dear, there is no way the loss incurred in her hand to be trfd and claimed in your hand....It has to be claimed in her hand only...The demat should be in dual name...Trading account can be in single name.

Ans. 2) For expenses....ANY and every expense which is directly relatable to you for earning that income are allowed to be claimed. For e.g. Internet, Telephone, Computer Depreciation etc etc.

Ans. 3) Please file your return.

Ans. 4) Since this would go under the income source of Business hence ITR-4 is required....That is why i said ITR-4. For detailed refer to https://incometaxindiaefiling.gov.in/portal/individual_huf.do

 

[TFL]

oh...so sorry hari....my mistake...I replied it the other way around...

In your case also the shares can be gifted to you by your father and you can the demat them for further sale at the exchange...

diosys,

Thank you very much for the information but do you know the details/procedure to do that?

Haribird.