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

[sam2trade]

Hi diosys,

Somewhere I read that short term capital gains will be taxed at a flat rate of 15%. so does that apply here rather than considering the slab ?
Please correct me if I am wrong.

Thanks,
Sameer.

Dear,

According to me you are doing business of trading and would be taxable under business category....You would be allowed deduction of your expenses from your income...Taxation of options and futures is always business income...

The slabs for the previous year for females are
1 to Rs. 1.8 lac - Nil
1.8 to 2.5 - 10%
2.5 to 3.5 - 20%
above 3.5 is 30%.

 

[diosys]

Hi diosys,

Somewhere I read that short term capital gains will be taxed at a flat rate of 15%. so does that apply here rather than considering the slab ?
Please correct me if I am wrong.

Thanks,
Sameer.

Flat rate is correct but that is only after deducting the basic exemption limit...

For eg you hace STCG of 200000 and no other income or loss then the tax payable by you would be 7500 (15% of 200000-150000).... and not 15% of 200000

 

[sam2trade]

Thanks diosys. That cleared my doubt :clapping::clapping:

Flat rate is correct but that is only after deducting the basic exemption limit...

For eg you hace STCG of 200000 and no other income or loss then the tax payable by you would be 7500 (15% of 200000-150000).... and not 15% of 200000

 

[BrokerJi]

Hi, I am a salaried employee with following income heads :-

1. Salary
2. interest from banks
3. tax free dividends on ELSS
4. profit/loss from trading ( in equities only)
5. A very small payment received as part time consultant (after TDS)

So,

1. Is it ok to fill just form IV in my case?
2. How to fill that complicated Balance sheet details etc, as I don't maintain any book of accounts

Consultant/websites charge less that 200 these days, but for some reasons I want to do myself (online) this weekend.
Please guide.
BJ

 

[diosys]

Hi, I am a salaried employee with following income heads :-

1. Salary
2. interest from banks
3. tax free dividends on ELSS
4. profit/loss from trading ( in equities only)
5. A very small payment received as part time consultant (after TDS)

So,

1. Is it ok to fill just form IV in my case?
2. How to fill that complicated Balance sheet details etc, as I don't maintain any book of accounts

Consultant/websites charge less that 200 these days, but for some reasons I want to do myself (online) this weekend.
Please guide.
BJ

Fill in ITR -2 and the consultant income show it as part of other income....You would not be required to maintain books of accounts

 

[anji]

Could you please advise:
I am salaried individual my taxble income 1.51 lac for FY 0809 and started share trading during Mar09, my realized gain around Rs 6000/- from Share trading during Mar09. I have not paid any tax whereas employer deducted 200/- IT from salary.

Would like to know-
1. which ITR form I will have to use for the return.
2. If I file return after 31st July, what action I will face.
3. Is there any need to pay STCG on reliazed gain, can't I forward it in nexy FY.
4. If STCG is payable what will be impact for the expenses incurred on maintaining computers, tele bills and internet bills which were incurred on share trading.
5. What kind of records I will have to retain.

 

[diosys]

Could you please advise:
I am salaried individual my taxble income 1.51 lac for FY 0809 and started share trading during Mar09, my realized gain around Rs 6000/- from Share trading during Mar09. I have not paid any tax whereas employer deducted 200/- IT from salary.

Would like to know-
1. which ITR form I will have to use for the return.
2. If I file return after 31st July, what action I will face.
3. Is there any need to pay STCG on reliazed gain, can't I forward it in nexy FY.
4. If STCG is payable what will be impact for the expenses incurred on maintaining computers, tele bills and internet bills which were incurred on share trading.
5. What kind of records I will have to retain.

Ans 1.) ITR 2

Ans 2.) Interest and in very very remote possibilty penalty.

Ans 3.) No, cannot be carried forwarded....pay @15% for the year BEFORE filing your retrun.

Ans 4.) None....expenses deduction is not allowed in STCG it is only allowed under business income head....under STCG you can deduct the brokerage you paid from the sale and similarly add brokerage to your purchase cost...

Ans 5.) No records are required to be maintained by you....

 

[sam2trade]

Hi diosys,

For one of my earlier query you replied as itr -iv. My query was also similar to anji's. Is there something I am mis-understanding ?
Thanks,
Sameer.

Ans 1.) ITR 2

Ans 2.) Interest and in very very remote possibilty penalty.

Ans 3.) No, cannot be carried forwarded....pay @15% for the year BEFORE filing your retrun.

Ans 4.) None....expenses deduction is not allowed in STCG it is only allowed under business income head....under STCG you can deduct the brokerage you paid from the sale and similarly add brokerage to your purchase cost...

Ans 5.) No records are required to be maintained by you....

itr-iv..........

 

[vasa1]

Hi Diosys, here are a few questions. Would greatly appreciate your input.

I have the following for FY 2008-2009 (AY 2009-2010) and I have given my understanding of the taxation:

1. Income from fixed deposits >>> Taxable as per slab

2. Dividend from shares >>> Tax-exempt

3. Dividend from equity mutual funds >>> Tax-exempt

4. Dividend from debt mutual funds >>> Tax-exempt

5. Profit from intraday trading of shares, not F&O or derivatives >>> Taxable as speculative income as per slab with STT incurred being deductable

6. Short-term capital losses by frequently buying and selling shares on delivery basis on the exchanges (i.e. STT has been levied)>>> can be carried forward as business losses without adding STT to purchase cost and subtracting STT from sale cost.

7. Net short-term and long-term capital losses incurred by redeeeming of debt mutual funds.

8. Long term capital gains by redeeming equity mutual funds (with STT deducted by the fund house) >>> Tax exempt.


My guess is that I have to file ITR 4 because of items 5 and 6 above.

I have not kept books of accounts but I itemised all my transactions in a spread sheet for calculation purposes


If all the above is correct, then with reference to ITR 4, can you please throw some light on the following:

Part A-Gen --- Liability to maintain books of accounts >>> No since income is less than Rs. 1.2 lakhs from business, actually loss in this year.
Liable to audit >>> No since total of gains plus total of losses (minus sign ignored) for intraday and short term together is less than 40 lakhs.
Nature of business or profession >>> ???

Part A-BS --- will skip items 1-5 and fill "No account case" but what are 6a "sundry debtors" & 6b "sundry creditors" since I haven't borrowed or lent to conduct the business of intraday trading and buying and selling shares for short term delivery?

And what is 6c -- Amount of total stock-in-trade? Is the the total closing value of the shares held by me as on 31/03/2009?
And what is 6d -- Amount of cash balance? Is it the free cash lying in my trading account?

I hope you can help!

If you can, I will some more questions very soon!

 

[diosys]

Hi diosys,

For one of my earlier query you replied as itr -iv. My query was also similar to anji's. Is there something I am mis-understanding ?
Thanks,
Sameer.

He is trading that is business....you are claiming them to be capital gain....that is the difference....