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

[raja1344]

Oops....

Now tell me how did you accquire these shares....did you buy them or got as a gift or through some other mean...

in any case i would suggest that in the previous FY 2008-09 include these in your balance sheet by debiting the investment and crediting to capital...

dear diosys
it was bought by me at ipo price. one point more,i had not submitted my return for last three years as my income was below the slab.i had no hurry to sale the script. in this situation what may be the best option.if it is penalty then how much it may be.
raja

 

[27.anurag]

Dear Diosys,

Thanks for all your replies. However, I have one more query :

Can interest income from savings a/c be set off against non speculative business loss incurred on account of trading in derivatives in the same year? Also if i carry forward the business loss to next year, can short term capital gain in next year be set off against it ?

Thanks,
Anurag

 

[diosys]

dear diosys
it was bought by me at ipo price. one point more,i had not submitted my return for last three years as my income was below the slab.i had no hurry to sale the script. in this situation what may be the best option.if it is penalty then how much it may be.
raja

Penalty is for concealment of income IF and only if these shares where bought out of unexlainable income....if you explain the source of money with which these were bought then no problem...

However i would again suggest you to include them in this year balance sheet.

 

[diosys]

Dear Diosys,

Thanks for all your replies. However, I have one more query :

Can interest income from savings a/c be set off against non speculative business loss incurred on account of trading in derivatives in the same year? Also if i carry forward the business loss to next year, can short term capital gain in next year be set off against it ?

Thanks,
Anurag

There are three queries....Let me address one by one...

Q1.) Yes it can be off set.

Q2.) Business loss can be carried forwarded for 8 years provided non speculative

Q3.) No it is not possible to have a set off amongst these heads.

 

[rider.royal]

One query : If you have loss in fin year 2008-09 in stock trading, in short term that you want to carry forward, then is it necessary to fill tax returns by 31st july itself, cant you do that 1-2 months later, with penalty ofcourse?
Thanks for helping out here

 

[diosys]

One query : If you have loss in fin year 2008-09 in stock trading, in short term that you want to carry forward, then is it necessary to fill tax returns by 31st july itself, cant you do that 1-2 months later, with penalty ofcourse?
Thanks for helping out here

If you dont file your return by 31st July, 2009 YOU WOULD NOT BE ALLOWED TO CARRY FORWARD YOUR LOSS OR CLAIM IT IN THE CURRENT YEAR

so get up and get going quickly !!!

 

[raja1344]

Penalty is for concealment of income IF and only if these shares where bought out of unexlainable income....if you explain the source of money with which these were bought then no problem...

However i would again suggest you to include them in this year balance sheet.

dear diosys

it was rs.1000 total purchase price though present value is rs 150000 ,can i show it as my tution income as source
raja

 

[diosys]

dear diosys

it was rs.1000 total purchase price though present value is rs 150000 ,can i show it as my tution income as source
raja

if only 1000 is the total purchase price then not much problem....include it into your balance sheet this year and forget the past....

 

[rm420]

I am replying to you assuming that there are no intraday transactions done by you AND such frequency of transactions (as told by you) is maybe between 10 to 15 in a year....

If above two conditions hold true then file in STCG...

THOUGH LET ME CLARIFY THAT STILL IT WOULD DEPEND UPON THE ASSESSING OFFICER AND YOUR LEGAL CONSULTANT WHERE IT GETS TAXED...business income or capital gain...

there is no set guidlelines wherein it can be determined whether the person is a trader or an investor.....

Hi Diosys!
Thanx a lot for reply. As assumed by u, there is no intraday trading & frequency is around 10-15 a year. My tax-consutant is going to treat as STCG.
But a confusion still persists. Whether this gain attracts a flat 15% tax or this gain is clubbed with other normal income & taxed at routine tax rates as applicable to an individual?
rm420

 

[diosys]

Hi Diosys!
Thanx a lot for reply. As assumed by u, there is no intraday trading & frequency is around 10-15 a year. My tax-consutant is going to treat as STCG.
But a confusion still persists. Whether this gain attracts a flat 15% tax or this gain is clubbed with other normal income & taxed at routine tax rates as applicable to an individual?
rm420

This is added to the total income in order to determine whether you cross the basic exepmtion limit or not...

Say you earn 3,00,000 from salary and 1,00,000 from STCG then the total tax payable would be (150000*10%) + (100000*15%)...

in another example you do not have any other income apart from STCG which is 2,50,000 then your tax payable would be (250000-150000(basic exemption limit)) * 15%