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

[diosys]

Hi Diosys,

I have a query.please help to clarify it.

1) For eg , if i had made a loss of RS X in Mutual fund and shares delivery based n this finnacial year.
2) and i f i had made profit Rs Y in day trading/or positional trading in F&O market in the same finnacial year.

So, can i show my net profit Z = Y- x, and pay income tax/business income tax on amount z. or otherwise please help to explain.

Dear,

it is your choice to show it that way or not....you can show it and lower your tax outgo.

 

[avinashtiwari22]

Dear,

it is your choice to show it that way or not....you can show it and lower your tax outgo.

Hi Diosys,

Thanks for the reply.

1) As i can undersatnd from the trail thread, Profit from day trading in futures market comes under Business Income and need to br filled as Business Income tax.

2) and Profit/Loss fom the Mutual fund or Delivery based Shares comes under
STCG/LTCG

3) Hence i want to offset Loss of STCG/LTCG against the profit of Business income from Futures trading ...... Now Questions are

a) is it permissible , if yes which process or what i need to follow.

Indebted
Avinash

 

[diosys]

Hi Diosys,

Thanks for the reply.

1) As i can undersatnd from the trail thread, Profit from day trading in futures market comes under Business Income and need to br filled as Business Income tax.

2) and Profit/Loss fom the Mutual fund or Delivery based Shares comes under
STCG/LTCG

3) Hence i want to offset Loss of STCG/LTCG against the profit of Business income from Futures trading ...... Now Questions are

a) is it permissible , if yes which process or what i need to follow.

Indebted
Avinash

Dear,

What you have understood is absolutely correct....

It is mandatory to show F&O income in Business. But it is NOT mandatory to show STCG for mutual funds or other holdings....That is what i said....you can classify it as business income also and set it off with the other business income in order to set off your loss....

 

[avinashtiwari22]

Dear,

What you have understood is absolutely correct....

It is mandatory to show F&O income in Business. But it is NOT mandatory to show STCG for mutual funds or other holdings....That is what i said....you can classify it as business income also and set it off with the other business income in order to set off your loss....

Thanks a ton diosys,

Avinash

 

[diosys]

Thanks a ton diosys,

Avinash

You are welcome avinash....

 

[diosys]

Hi Guys...

I would be out of town for the next one week...Hence post your queries and i would reply to them when i come back...Cya all.

 

[TFL]

Hi Guys...

I would be out of town for the next one week...Hence post your queries and i would reply to them when i come back...Cya all.

Dear diosys,

You are doing a great job here. Keep attending our tax related questions.

Good Wishes for your journey...
Hari.

 

[TFL]

Dear Diosys,

I have a question.
Say, a Father(NRE account) is transferring Rs:2Lakh to his Son(Non-NRI A/C).
After 50 days the Son is transferring back the same amount to Father.
All the above 2 transaction is through cash withdrawn from each one's bank account and not by cheque or DD or so.

Is there any tax implication in this? If so how it can be tackled? Is it ok to transfer by cash rather than by cheque?

Thank you,
Hari.

 

[kripalxp]

Hi diosys,
I have gone through the queries and responses above but still my doubt prevails. I am sorry to ask you again.

I am trading in Options(F&O) daily and making good profits. What is the rate at which these income will be taxed? Do I need to keep auditor for audinting my accounts? or do i simply when I file my returns through Tax consultant, mention the profits and Tax can be calculated? Is there any relaxation for the females? is there any slabs on which the income is taxed?

Thanks in advance

 

[diosys]

Dear Diosys,

I have a question.
Say, a Father(NRE account) is transferring Rs:2Lakh to his Son(Non-NRI A/C).
After 50 days the Son is transferring back the same amount to Father.
All the above 2 transaction is through cash withdrawn from each one's bank account and not by cheque or DD or so.

Is there any tax implication in this? If so how it can be tackled? Is it ok to transfer by cash rather than by cheque?

Thank you,
Hari.

Dear Hari,

The problem here would be the cash involvement in the said transaction. This cash transactions would lead to un-necessary litigation. The ITO might want to add this deposit to the income of the person unless suitably explained...

Otherwise i dont see any other tax implication on such a transaction.