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

[shajan]

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 ????

Ya, I have an NRI account. in the PIS statment

 

[fjl24]

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

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...

Ok Diosys

Will heed your advise and get back to you once i go through your thread.

Thanks and Regards
Floyd

 

[shifazaid]

hello sir,
first of all, thank you for this thread and its really great that someone is doing it. let me cut this short.
i have started trading in shares just recently, one month to be exact. and basically until now i have traded only on intraday basis and am very happy at the way things are going. made some money. this is my only source of income.
i trade intraday basis with shares as well as in options. so how would the tax be caluclated in my case.
will it be after the inital slab of 1 lac per year?
will it be on the basis of short term capital gains?
will my expenses be deducted?
what is the tax on options and futures trading?

i do it 2 ways.....
intraday and secondly take delivery and sell them of within the trading + 2 days.....

would really appreciate your answer.
i deal with sharekhan online and do i need to keep records of my trades or will the contracts of sharekhan be enough. i mean their invoices.

thank you in advance

shifazaid

 

[notam]

I got a question. i live in Nodia and do the trading with a firm located in Delhi. for which state the Stamp Duty will be applicable to me. The place i Live or the Place where the Company is Registered.

 

[fjl24]

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

Hi Diosys

Have started reading your thread from the very begining but guess it would take some time so am writing to you for advice a bit earlier.

Myself and my wife both are deriving our incomes from salaries. I am in the highest tax bracket & my wife is in the lower tax bracket.

We have a combination of both incomes and losses from investing and trading. Details of the same are given below.

Would sincerely appreciate if you could advise us how to go about the same.

PS: - We do not have any long term/short term gains/losses from any other assets during the current year/previous financial year.

Income Structure - Self:
Main source of income - Salaries (highest tax bracket)
Loss from intraday trading - both cash scripts as well as derivatives - Nifty Futures.
Short Term Capital Gains - from shares (invested with the intention of making profits - so sold as and when made profits)
Other sources - interest from bank etc.

Income Structure - Wife:
Main source of income till date - Salaries (lower tax bracket) this would change in the future as she is interested to take up trading as a full time profession. Thus in future her only source of income/loss would be as a Trader/Investor.
Gains from intraday trading - cash scripts
Losses from intraday trading - derivatives - Nifty Futures.
Short Term Capital Losses - from shares (invested with the intention of making short term profits - but sold as stop losses got hit - positional trades)
Other sources - interest from bank etc.

Kindly advise how we should show the above in our respective returns to get the maximum benefits (either as a reduction of tax or as carry forward of losses). Also, can we in our individual returns claim any set offs of the losses against gains from common category - i.e. equities.

Lastly, what treatment needs to be given to STT paid through all the above transactions.

Thanks and Regards
Floyd

 

[fjl24]

Re: A Basic Question On Computation of Profits/Losses - Equity

Hi Diosys

Further to my previous post on taxation i have another very basic question regarding computation of profit and loss from equity & futures.

I would like to share 2 actual contracts and would request you to advise me on how i should compute the profit/loss from individual contracts.

1. Intraday transaction - RPL (per unit)

Buy - 1 qty
Rate - 76.00
Brokerage - 0.04
Service Tax - 0.0041

Sell - 1 qty
Rate - 76.85
Brokerage - 0.04
Service Tax - 0.0041
STT - 0.0190
Stamp Duty - 0.11
Total Other Charges - 0.01

2. Intraday transaction - Nifty Futures (2 lots)

Buy - 100 qty
Rate - 3654.55
Brokerage - 328.91
Service Tax - 34.58

Sell - 100 qty
Rate - 3678.00
STT - 62.53
Education Cess - 0.69
Higher Education Cess - 0.35
Stamp Duty - 14.67
Turnover Charges - 16.86

3. If the figures mentioned in 1. & 2. above is for a short term (delivery based transaction) then would the computation be the same.

4. If the figures mentioned in 1. & 2. above is for a long term (delivery based transaction) then would the computation be the same.

5. Is similar treatment of computation metted out to both Futures & Options transactions - as both are from the derivative segment.

&

6. If the above 2 are to be considered as Business Income then what should be the method of computing - Purchases, Sales & Closing Stock figures. Also, how should we treat the STT paid. Is STT to be considered similar to a TDS certificate.

Thanks in advance

Regards
Floyd

 

[rahul83]

Query on tax liability

Hi Diosys,
Forbid me if i maybe repeating sum of the queries , but the scene after so much discussion is still not very bright
I do frequent buying/selling of shares with arnd 50k to 1Lakh of amount and with an average holding duration of 2-3 days,
Now what i know is that it will come under short term capital gain and will be charged 15% on that. But somewhere i read that if there is a large volume of transactions and frequent dealings and if at the time of purchase the intention is to make quick profit, then the transactions are likely to be treated as business income.
But my question is how can one define this so called intention to make quick profit and if i buy/sell shares 2-3 times a week is this a high frquency? And will doing buying/selling in the same trend will this profit be added to my buisness income.
And if these facts are true then are these facts of frequency and intention being documented by IT department


Regards,
Rahul

 

[wattax]

Need some more help, Diosys...

1) What the the "Nature of Business" code for a full time active trader, I don't see the option.

2) Also, what's the Nature of Business for someone whose only income was from long term(1 year+) mutual funds?

3) Some items in ITR4 seem to be repeating/contradictory. Like the dividend from a MF, there's a section for it under "Income from Other sources" and also under "Exempt income". Which is right?

4) Similar situation with LTCG, according to "Schedule SI", the special tax rate for LTCG is:
10 or 20% depending on indexing
or 10% according to tax on MFs
or 10% according to income on ltcgs.
Each with its own code. Which one do I use for a long term equity MF? Or do I just fill it in the actual Capital Gains page?

 

[sanbhavan]

Thanks to DIOSYS for the "DIOSYS TAX RECOKNER" , especially for newbies.
For BTST we are charged brokerage for delivery but since shares are not actually held, for IT purpose how do we calculate "speculation" or STCG?

 

[harsh300684]

ITR 4 or ITR 2?

Dear All,


Iam a salaried employee having annual income of 2.5 Lakhs apart from this is i trade in share market in instruments like:
1) Delivery
2) Day trading (Intraday)
3) Future & options
I have suffered loss in Day Trading & (F&0) for fiscal 08-09 of about 30,000 Rs. can anyone please guide me which form i need to fill?ITR 2 or 4?
And if its ITR 4 is their any website where i can fill the same.


Thanking you in advance.