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

[moto143]

Hi..

I have started day trading off late.I'm trading using my dad's demat account since i don't have any address proof as of now to be able to apply for a Pan card or demat account.

So let me put my query...are we only supposed to pay TDS for the profit we earn from trading??? or even Volume of trading is taken into account since on an average my volume of trading in a day would be nearly 2 lac Rupees..I haven't earned much profit to talk about.

And i have a off topic question too...Would Government University ID card suffix to apply for PAN card and Demat account??? I have applied for Voter ID card from 3 months but there is no response yet.

 

[diosys]

Hi..

I have started day trading off late.I'm trading using my dad's demat account since i don't have any address proof as of now to be able to apply for a Pan card or demat account.

So let me put my query...are we only supposed to pay TDS for the profit we earn from trading??? or even Volume of trading is taken into account since on an average my volume of trading in a day would be nearly 2 lac Rupees..I haven't earned much profit to talk about.

And i have a off topic question too...Would Government University ID card suffix to apply for PAN card and Demat account??? I have applied for Voter ID card from 3 months but there is no response yet.

Hi,

there would be no TDS on such income....It would be Income tax....

Secondly for PAN the university ID card will NOT work....

 

[shajan]

please, I would like to know two things about income tax (ing)

1) If I made a profit of 2.5 lacs rs from share trading (shares sold after held for 14 months), do I need to pay the income tax? if yes how much?

2) if I made a profit of 2.2 lacs in share trading (held for less than 6 months) and STCG tax is already deducted by the bank, do this amount (after tax) also add to the above (Q1)amount for calculating Income tax?

Please advice

Thanks in advance
Shajan

 

[diosys]

please, I would like to know two things about income tax (ing)

1) If I made a profit of 2.5 lacs rs from share trading (shares sold after held for 14 months), do I need to pay the income tax? if yes how much?

2) if I made a profit of 2.2 lacs in share trading (held for less than 6 months) and STCG tax is already deducted by the bank, do this amount (after tax) also add to the above (Q1)amount for calculating Income tax?

Please advice

Thanks in advance
Shajan

Ans.1) There would be no tax payable on this....

Ans.2) First there is no STCG deducted by banks....ever....It is for you to determine your tax liability on the same and pay tax at the time of return filing....

 

[shajan]

Diosys,

Thanks for your reply.


I have my PIS account with Axis bank and dmat accout with geojit

I started investing/trading in share from 2008 september.

Some shares I bought before Dec-08 for which I gained some profit, I sold.

and when the amount transfered by geojit to Axis bank they(axis bank) deducted, little above 15% of profit as TDS. I thought it may be tax on STCG. if not what could be this TDS deduction

Please advise

 

[fjl24]

Hi Diosys - Query On LTG,STG & Intraday Profits & Losses

Dear Diosys

Firstly, a big thanks for starting this thread. :clapping:

My queries are as follows:

Presently my main source of income is from Salaries.

I have made both profits and losses as under:-
1. Profits/Losses in Intraday Trades - Net Loss though (From Trades In Equity & Derivatives Segments)
2. Profits/Losses in Short Term Trades - Net Profit though (Only Equity)
3. Profits/Losses In Long Term Trades - Net Loss though (Only Equity)

Would appreciate if you could correct me on the below facts that i have stated:-

1. Long Term Profits being exempt from tax - there is no set off for the Long term losses that we may incur.

2. There is no seperate treatment for intraday profits or losses irrespective of whether the same is from Equity or Derivatives segment.

3. As my main source of income is Salaries - i need to show intraday profits/losses under the category of business income/loss and not income/loss from capital gains.

4. My short term gains though can be shown under the head - income from capital gains.

My Queries are as follows:-

1. Can intraday losses be set-off against short term gains if not then how long can i carry forward these losses.

2. If i continue to have salaries as my major source of income in future too and do quite a bit of intraday trading - what all expenses can be deducted from the profits that arise from intraday trading (if this is to be treated as a business income).

3. How many years can i carry forward short term capital gains losses if any incurred and can i adjust the same against any other sources of income.

4. Lastly, is business income/loss from intraday trades treated differently from other business incomes/losses. As, other business losses can be set off against other sources of incomes.

Please excuse me if you have already answered these questions earlier in your thread - in which case please let me know so that i will go through you entire postings.

Also, sorry for this long post as i was trying to cover the entire gamut of my queries in this single post.

Thanks in advance

Best Regards
Floyd

 

[diosys]

Diosys,

Thanks for your reply.


I have my PIS account with Axis bank and dmat accout with geojit

I started investing/trading in share from 2008 september.

Some shares I bought before Dec-08 for which I gained some profit, I sold.

and when the amount transfered by geojit to Axis bank they(axis bank) deducted, little above 15% of profit as TDS. I thought it may be tax on STCG. if not what could be this TDS deduction

Please advise

I cannot find any reason for this deduction....there is no TDS on STCG....go to the bank and ask what this deduction is for....if actually it is for TDS then demand form 16A....

Could it be possible you have an NRI account ????

 

[diosys]

Re: Hi Diosys - Query On LTG,STG & Intraday Profits & Losses

Dear Diosys

Firstly, a big thanks for starting this thread. :clapping:

My queries are as follows:

Presently my main source of income is from Salaries.

I have made both profits and losses as under:-
1. Profits/Losses in Intraday Trades - Net Loss though (From Trades In Equity & Derivatives Segments)
2. Profits/Losses in Short Term Trades - Net Profit though (Only Equity)
3. Profits/Losses In Long Term Trades - Net Loss though (Only Equity)

Would appreciate if you could correct me on the below facts that i have stated:-

1. Long Term Profits being exempt from tax - there is no set off for the Long term losses that we may incur.

2. There is no seperate treatment for intraday profits or losses irrespective of whether the same is from Equity or Derivatives segment.

3. As my main source of income is Salaries - i need to show intraday profits/losses under the category of business income/loss and not income/loss from capital gains.

4. My short term gains though can be shown under the head - income from capital gains.

My Queries are as follows:-

1. Can intraday losses be set-off against short term gains if not then how long can i carry forward these losses.

2. If i continue to have salaries as my major source of income in future too and do quite a bit of intraday trading - what all expenses can be deducted from the profits that arise from intraday trading (if this is to be treated as a business income).

3. How many years can i carry forward short term capital gains losses if any incurred and can i adjust the same against any other sources of income.

4. Lastly, is business income/loss from intraday trades treated differently from other business incomes/losses. As, other business losses can be set off against other sources of incomes.

Please excuse me if you have already answered these questions earlier in your thread - in which case please let me know so that i will go through you entire postings.

Also, sorry for this long post as i was trying to cover the entire gamut of my queries in this single post.

Thanks in advance

Best Regards
Floyd

Fact 1 - Wrong....Both can be set off provided both long term.

Fact 2 - Wrong....Both have seperate treatment....One is speculative and one(future) is not.

Fact 3 - What you main source of income is not what is needed where and under which head your income would be assessed. It is indipendent of it and is done based on framework provided within the act.

Fact 4 - Correct....

Question 1 - They can be set off.

Question 2 - All those expenses which are directly relatable to earning that income is allowed as a deduction for e.g. internet, telephone, computer etc...

Question 3 - Short term losses can only be set off against capital gain (long term or short term) if not possible then maximum carry forward allowed is for 8 years.

Question 4 - Speculative business loss can only be set off against such business and not other non-speculative busniness....

Rest...refer to the thread (esp 1st page) for clearer understanding....

 

[fjl24]

Re: Hi Diosys - Query On LTG,STG & Intraday Profits & Losses

Fact 1 - Wrong....Both can be set off provided both long term.

Fact 2 - Wrong....Both have seperate treatment....One is speculative and one(future) is not.

Fact 3 - What you main source of income is not what is needed where and under which head your income would be assessed. It is indipendent of it and is done based on framework provided within the act.

Fact 4 - Correct....

Question 1 - They can be set off.

Question 2 - All those expenses which are directly relatable to earning that income is allowed as a deduction for e.g. internet, telephone, computer etc...

Question 3 - Short term losses can only be set off against capital gain (long term or short term) if not possible then maximum carry forward allowed is for 8 years.

Question 4 - Speculative business loss can only be set off against such business and not other non-speculative busniness....

Rest...refer to the thread (esp 1st page) for clearer understanding....

Hi Diosys

Thanks a million.

One more thing - Would sincerely appreciate if you could guide me to any specific book/weblink for getting a detailed and indepth understanding on all related queries pertaining to Income Tax - Act & Rules related to trading in equities & derivatives (from an Income Tax angle only). I have a lot of queries pertaining to computation of the gains/losses, impact of STT etc etc

I can get access to VG Mehta's - Ready Reckoner as well as Singhania's I.T. book - Please let me know which book or weblink will give me a detailed and indepth info of the prevailing rules & regulations.

Once i do my homework i would get back to you with very specific doubts that i still would be having rather than bother you with petty queries like above.

Thanks once again for your quick response. Sincerely appreciate the same.
Best Regards
Floyd:thumb:

 

[diosys]

Re: Hi Diosys - Query On LTG,STG & Intraday Profits & Losses

Hi Diosys

Thanks a million.

One more thing - Would sincerely appreciate if you could guide me to any specific book/weblink for getting a detailed and indepth understanding on all related queries pertaining to Income Tax - Act & Rules related to trading in equities & derivatives (from an Income Tax angle only). I have a lot of queries pertaining to computation of the gains/losses, impact of STT etc etc

I can get access to VG Mehta's - Ready Reckoner as well as Singhania's I.T. book - Please let me know which book or weblink will give me a detailed and indepth info of the prevailing rules & regulations.

Once i do my homework i would get back to you with very specific doubts that i still would be having rather than bother you with petty queries like above.

Thanks once again for your quick response. Sincerely appreciate the same.
Best Regards
Floyd:thumb:

Dear,

The moment i give you a link....be sure that you would be much more confused than what you are presently....

Just try going through this entire thread....most of your doubts would be cleared....still left then write back...