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

[diosys]

dear diosys,
Now when STT is an expense, is there any need to preserve STT statements ?
As all credits are STT adjusted?

regards

STT is an expense only when claimed under the head of business income and not capital gain...

For eg sold shares of Rs. 10000 and STT Rs. 5 then the sale value for the books would be Rs. 10000 and STT would be an expense...

PLEASE DO NOT ENTER IN THE BOOKS AS SALE TO BE RS. 9995/-

 

[TFL]

Day trading...be it speculative or non speculative according to me would should always be booked under business income and not capital gains.

Why diosys? If under STCG then only 15% flat tax applicable if under business 30% as per my understanding. Kindly correct the view.

TFL,

 

[lazytrader]

It is because day trading is not investment hence you can't put it under capital gains. Day trading become business income and taxed at 30%.

 

[lazytrader]

Hi diosys,

Last yr I had purchased aritel shares on 23-jun-08. Now due to the split there are showing up as a debit of the previous isin number and credit of the new isin number with double the no of shares on 31-July-09. I had read you explanation on splits and bonuses in one of the earlier posts but not clear on this case. can you please clarify my doubt?

P.S: Scrip name has been changed from BHARTI AIRTEL LTD EQ to BHARTI AIRTEL-EQ 5

If this were to happen withing 1 yr of purchase would it make an difference from taxation pt of view?

 

[diosys]

Why diosys? If under STCG then only 15% flat tax applicable if under business 30% as per my understanding. Kindly correct the view.

TFL,

how would you make ITO believe that you did Day trading and booked under STCG ???

Eating the cake and having it too is not possible....

 

[diosys]

Hi diosys,

Last yr I had purchased aritel shares on 23-jun-08. Now due to the split there are showing up as a debit of the previous isin number and credit of the new isin number with double the no of shares on 31-July-09. I had read you explanation on splits and bonuses in one of the earlier posts but not clear on this case. can you please clarify my doubt?

P.S: Scrip name has been changed from BHARTI AIRTEL LTD EQ to BHARTI AIRTEL-EQ 5

If this were to happen withing 1 yr of purchase would it make an difference from taxation pt of view?

no it does not matter....

Bonus shares would show a loss in one year and super profit when the bonus shares are sold since their acquisation cost would be nil.

 

[magnet]

Sir this was the first time i added(we) business in my balance sheet ......

My purchase was ard 5L and sales was 5.10L.....
Now CA took stuff in stock figures ard 1.6l....and overall profit same 1.6 Lakhs..and after all deduction like salary to workers and all license stationary expense 61k was shown as profit....

Now i wanted to ask what is this presumptive type of taxing on business?

Can i avail of same or what are the condition to be allowed to use the same


Now if i can apply the same.....Is my following analysis correct?

I guess for my assessment year 2010-2011.....my turnover would be ard 12l-14l....Now if i go with the same(presumptive) format of taxation...considering higher amount 14L..at 8% rule...ard 1 lakh 12000 becomes my income.....right...

But i also freelance a bit....and my earning through it is ard 2 lakhs..........

So my overall income on which tax will be caluclated is 3 lakhs 20000(if no investment for 80C done) on that ard 20k becomes my tax...right???

Also is it necessary for me to maintain ledgers as what i heard for below 40L its not compulsory...but since i file vat too it somewhat becomes compulsory to me

 

[diosys]

Sir this was the first time i added(we) business in my balance sheet ......

My purchase was ard 5L and sales was 5.10L.....
Now CA took stuff in stock figures ard 1.6l....and overall profit same 1.6 Lakhs..and after all deduction like salary to workers and all license stationary expense 61k was shown as profit....

Now i wanted to ask what is this presumptive type of taxing on business?

Can i avail of same or what are the condition to be allowed to use the same


Now if i can apply the same.....Is my following analysis correct?

There is an amendment in the proposed budget that all business can claim pressumptive taxation scheme and declare their income at fixed 8%....So if you did sales of Rs. 20,00,000 then your taxable income would be 1,60,000. Then you can deduct your investments u/s 80C....BUT THIS SECTION WOULD APPLY FROM FY 2010-11 and not this current FY....

SO for this FY you would need to maintain your books of accounts....

On Rs. 3,00,000 income with no deduction u/s 80C the tax payable would be Rs. 14,000

 

[vssoma]

thank you sir,
nice thread, keep continue...it's very useful for newbie like me.

 

[riser3]

Sir I am an stock investor of Delivery based

So is capital gains system applicable ?

my second query is if i sold before 1 year what value of stock would require me to file tax( would that limit of 1,50,000/- per year applicable as iti is only source of Income). I have no other sources of Income.

My profession is given as student in the PAN details and I am presently unemployed (graduated in april-09)