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

[diosys]

diosys,

This is a very fundamental question from a first time tax payer.
I was some what clear in these things but the lastest informations really confusing me so please take your time answering my question below.

My Profile:
Income from trading in F&O and Equity including delivery in the last year from March 2008. Trading from home.

1. Now I want to pay the taxes...upto what time I can pay taxes for the above with out penalty?

2. In which category I will be paying tax?

3. What are the formalities of accounting them as business income if possible?

4. Please guide as a bit for paying the tax in terms of a new tax payer.

1.) Taxes can be paid anytime without penalty if the same is before any notice sent by IT even if its 50 years....It shows that it was a bonafide mistake and not intentional on your part to hold back the tax....

2.) Category does not change the method of payment of tax...the quantum can change...I cannot comment on the category till i see all the transactions and their quantum.

3.) No formalities. Maintain regular books of accounts.

 

[TFL]

1.) Taxes can be paid anytime without penalty if the same is before any notice sent by IT even if its 50 years....It shows that it was a bonafide mistake and not intentional on your part to hold back the tax....

So for the trades I done from April 1 2008 to March 31 2009, the tax paying/filing returns time is arrived right?

3.) No formalities. Maintain regular books of accounts.

Really a very fundamental question. As a trader what books we need to maintain? It will be more good if you can explain the term book. What we need to keep accounting day by day after trades?

Thank you,

 

[diosys]

So for the trades I done from April 1 2008 to March 31 2009, the tax paying/filing returns time is arrived right?



Really a very fundamental question. As a trader what books we need to maintain? It will be more good if you can explain the term book. What we need to keep accounting day by day after trades?

Thank you,

1.) Yes the time is available till 31st July, 2009...

2.) Books mean...Ledger, Day book, Cashbook and relevant vouchers with their supporting.

 

[Mangafreakz]

Hi. what are the tax rates for Income from daytrading , F&O and forex ?
And does the tax payer has to Differentiate regarding the stocks which he day traded and as to which He traded on delivery basis?
Another query , have heard about Section 80U , under which Income upto Rs.50,000 is exempted in case of income by disabled Persons , so as I have 75% Disability , will I get any deduction with respect to short term capital gains ?
Thanks. Nice thread mate.

 

[diosys]

Hi. what are the tax rates for Income from daytrading , F&O and forex ?
And does the tax payer has to Differentiate regarding the stocks which he day traded and as to which He traded on delivery basis?
Another query , have heard about Section 80U , under which Income upto Rs.50,000 is exempted in case of income by disabled Persons , so as I have 75% Disability , will I get any deduction with respect to short term capital gains ?
Thanks. Nice thread mate.

Dear,

There are no fixed tax rates for income...it all depends in which tax bracket one falls depending on your total income....For capital gain (short term) from equities it is 10% and long term is exempt from tax....

Other rates would depend on your income...

Yes you can avail exemption u/s 80U...

 

[stocksplacement]

Sir,

Can you tell me whether FBT is applicable on the following:

1. Medical Allowance
2. School Fees of Children
3. Conveyance allowance for traveling to office and back by bus
4. Uniform Allowance

The reason for asking is that my company is deducting FBT Tax from me and they are not clear as to which item the fringe benefit is deducted.

 

[Mangafreakz]

Dear,

There are no fixed tax rates for income...it all depends in which tax bracket one falls depending on your total income....For capital gain (short term) from equities it is 10% and long term is exempt from tax....

Other rates would depend on your income...

Yes you can avail exemption u/s 80U...

Thank you Sir.

 

[diosys]

Sir,

Can you tell me whether FBT is applicable on the following:

1. Medical Allowance
2. School Fees of Children
3. Conveyance allowance for traveling to office and back by bus
4. Uniform Allowance

The reason for asking is that my company is deducting FBT Tax from me and they are not clear as to which item the fringe benefit is deducted.

Now i am confused !!!

Your company is deducting FBT from you ???? I have never come across such a scenario....FBT is paid by the employer not deducted from employee...

Plus all the expenses stated by you above are not covered under FBT except conveyance allowance (that too indirectly).....

 

[stocksplacement]

Sir,

Thanks for your reply. Another query. Please let me know the occassions when Banks deduct TDS.

1. Is it when more than Rs.50,000/- is transferred.
2. Is it when the interest earned is more than a certain amount and if so what is that amount.
3. Is it when more than certain amount is deposited into the account.

Please solve my query.

Regards

Now i am confused !!!

Your company is deducting FBT from you ???? I have never come across such a scenario....FBT is paid by the employer not deducted from employee...

Plus all the expenses stated by you above are not covered under FBT except conveyance allowance (that too indirectly).....

 

[diosys]

Sir,

Thanks for your reply. Another query. Please let me know the occassions when Banks deduct TDS.

1. Is it when more than Rs.50,000/- is transferred.
2. Is it when the interest earned is more than a certain amount and if so what is that amount.
3. Is it when more than certain amount is deposited into the account.

Please solve my query.

Regards

TDS is always deducted on Income and not on transfers....Hence TDS on query 1 and 3 goes out of the picture....

For interest TDS is deducted if interest income is greater than Rs. 10000 in one FY.