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

[magnet]

I wanted to know that recently i bought some shares purely for the purpose of trading short term....
Now i m almost making 35% profit in it.....

Now at the same time i have got some shares of reliance power which i got during ipo time and i guess on 22nd feb it will complete a year of it being in my account....

I m making right now 56% loss on it......now suppose i sell both of it...can i square the losses with same right now..or suppose if i sell reliance shares after the date it will become a long term share than i wont b allowed to square off loss or wht???

 

[diosys]

I wanted to know that recently i bought some shares purely for the purpose of trading short term....
Now i m almost making 35% profit in it.....

Now at the same time i have got some shares of reliance power which i got during ipo time and i guess on 22nd feb it will complete a year of it being in my account....

I m making right now 56% loss on it......now suppose i sell both of it...can i square the losses with same right now..or suppose if i sell reliance shares after the date it will become a long term share than i wont b allowed to square off loss or wht???

Yeah Magnet, if you sell RPL before 22nd you can square off the transactions....

 

[INDU1]

No, they are not taxable....but in certain cases any income which arises from the gifts would be taxable in the donor's hand....

Dear Diosys,

Thanks for your reply.
Can you elaborate what that certain conditions are?

regards
Indu

 

[Northie]

Respected Traderji members,

I am planning to do trading with 50-50 partnership with my maternal uncle. He will just invest the money. I will trade on behalf of him with broker account opened by my name. Only my bank account will be registered for transaction with that broker account. If I gain some profit then I'll deduct the possible tax from that profit (i.e. I'll not use the deduced money in any way) and after that I'll transfer 50% profit (after deducing the total possible tax) to my uncle's bank account through my online bank account.

Now I want to know will there be any tax implications on the money my uncle is going to recieve from me each month through onlne bank transfer? Will he has to pay any tax because he will be doing neither trade nor any business or any job. How will he has to show this monthly income which I transfer to his bank account?

Please show me the correct path. Thanks

 

[prams_aryan]

Dear,

First would answer your 2nd question...Better to start as an individual and later float a company (because of compliance and tax point of view)...

There is no set up fee for a individual...open a demat and start trading....

For an investment company the flat rate of tax is 30% at present....

Hello Diosys,
I am very thanfull for you suggestion and reply. As u said for an Investment Company the tax rate is flat 30% . so, what will be the tax consideration for individuals. I am doing trading dailywaise as for now. Please ellaborate tax rates in Equities and F&O for both STCG and LTCG for an individual.

 

[diosys]

Dear Diosys,

Thanks for your reply.
Can you elaborate what that certain conditions are?

regards
Indu

dear Indu,

There are numerous such conditions....Just to point to a few...

Transfer between spouses
Transfer between Daughter in law and father in law...

 

[diosys]

Respected Traderji members,

I am planning to do trading with 50-50 partnership with my maternal uncle. He will just invest the money. I will trade on behalf of him with broker account opened by my name. Only my bank account will be registered for transaction with that broker account. If I gain some profit then I'll deduct the possible tax from that profit (i.e. I'll not use the deduced money in any way) and after that I'll transfer 50% profit (after deducing the total possible tax) to my uncle's bank account through my online bank account.

Now I want to know will there be any tax implications on the money my uncle is going to recieve from me each month through onlne bank transfer? Will he has to pay any tax because he will be doing neither trade nor any business or any job. How will he has to show this monthly income which I transfer to his bank account?

Please show me the correct path. Thanks

Dear,

All the answers depend on one question what is the relationship of this maternal uncle...is he your mothers brother or brothers brother or what....everything would depend on this relationship...

 

[diosys]

Hello Diosys,
I am very thanfull for you suggestion and reply. As u said for an Investment Company the tax rate is flat 30% . so, what will be the tax consideration for individuals. I am doing trading dailywaise as for now. Please ellaborate tax rates in Equities and F&O for both STCG and LTCG for an individual.

Dear,

all the rates have been specified in the previous some pages...please try going through the thread...Therein you would also find the method of calculating the tax payable...

 

[prams_aryan]

Dear,

all the rates have been specified in the previous some pages...please try going through the thread...Therein you would also find the method of calculating the tax payable...

Hello Diosys, i will definetly go through all the previos posts thankou for taking time...Good Luck

 

[mast_trader]

i am in 5lac+ bracket and working for a pvt organisation. I have recently started indulging in day-trading in equity through one of the online brokerage firms--- made profits and losses.
I also indulged in delivery based trading in equity- again there are profits as well as losses . Now when i file the taxes, i am confused - i have read the forum and i get an understanding abt auditing but can u help to clarify for non-audited account.Also, there are brokerage and STT charges, thus bringing down my Net Profit everywhere,, do i have tax liablities on brokerage+STT in addition to net profit
gross profit=Net profit+STT+brokerage charges

will there be any special ITR form, or can i continue using the same ones as i have done till now