Good Cas who can file properly

[canikhil]

Dear All,

Please note:

1. No, stock trading is not a profession. It is a business

2. For audit applicability, Section 44AB is to be referred. Do not blindly follow what your CA says. Ask him for logical explanation for the same.

 

[fish]

Dear All,

Please note:

1. No, stock trading is not a profession. It is a business

2. For audit applicability, Section 44AB is to be referred. Do not blindly follow what your CA says. Ask him for logical explanation for the same.

Sir,if a trader is not liable to maintain accounts as per 44AA or not fall under 44AB to undergo audit,then while filing a return he/she has to upload Balance Sheet and P/L Account details?

Though stock trading is not a profession,but we file under Profit and Gains of Business or Profession.

 

[Rohitt]

Hi everyone ,

I have salary income of 2.4 lakhs , f&o turnover ( no equity trading ) of 30 lakhs & profit of 1 lakh , interest income of 40 thousand on FD .
(1) do audit required as f&o profit < 8% ?
(2) If yes , can I get tax audit exemption by investing in PPF for 1.5 lakhs within March ?
(3) Is the minimum taxable income of 2.5 lakhs include ( salary + profit of f&o + interest income - deduction of 80c ) or only salary income ?
(4) please clarify what does the minimum taxable income of 2.5 lakhs include ( different incomes & deductions which can be included ) ?
(5) how much tax I have to pay if ( salary + profit of f&o + interest income - deduction of 80c ) < 2.5 lakhs ?

Anyone Please reply ASAP . Thanks.

 

[Rohitt]

Sir, I have salary income of 2.4 lakhs . I did f&o turnover of 30 lakhs with profit of 1 lakhs , interest amount of 40 thousand. So
1) do I have to do tax audit ?
2) if yes , can I get tax audit exemption by investing in PPF for 1.5 lakh to bring net taxable income less than 2.5 lakhs ?
3) if ( salary + f&o profit + interest amount - deductions of 80c ) < 2.5 lakhs , tax audit required ? & How much income tax to pay with above equation ?

Sir, please guide me .

Thank you.

 

[doonyadav]

Any C.A in Najafgarh Delhi. Please contact me.

 

[VJAY]

Sir, I have salary income of 2.4 lakhs . I did f&o turnover of 30 lakhs with profit of 1 lakhs , interest amount of 40 thousand. So
1) do I have to do tax audit ?
2) if yes , can I get tax audit exemption by investing in PPF for 1.5 lakh to bring net taxable income less than 2.5 lakhs ?
3) if ( salary + f&o profit + interest amount - deductions of 80c ) < 2.5 lakhs , tax audit required ? & How much income tax to pay with above equation ?

Sir, please guide me .

Thank you.

Please check your turnover for F&O ..its not as per normal ...your statement shows you have 29lac loss +1 loc profit from F&O!!!!
F&O turnover calculated as loss in f&o trading +profit in f&O trading=turnover of futures
premium +selling premium=option turnover ...please go through initial posts of this thread more clarity....

 

[Rohitt]

Vjay sir, In my f&o turnover it includes both futures and options . I have account with ZERODHA & I have checked the turnover in ZERODHA , it's correct as I have mentioned above.
So please reply the answers to my questions mentioned above in 2 posts.

Thank you.

 

[VJAY]

Vjay sir, In my f&o turnover it includes both futures and options . I have account with ZERODHA & I have checked the turnover in ZERODHA , it's correct as I have mentioned above.
So please reply the answers to my questions mentioned above in 2 posts.

Thank you.

Dear Rohit,
As your turnover is correct with zerodha then answers of your Qs better to wait for nikhilji's reply..

 

[traderniftybull]

Sir, I have salary income of 2.4 lakhs . I did f&o turnover of 30 lakhs with profit of 1 lakhs , interest amount of 40 thousand. So
1) do I have to do tax audit ?
2) if yes , can I get tax audit exemption by investing in PPF for 1.5 lakh to bring net taxable income less than 2.5 lakhs ?
3) if ( salary + f&o profit + interest amount - deductions of 80c ) < 2.5 lakhs , tax audit required ? & How much income tax to pay with above equation ?

Sir, please guide me .

Thank you.

I will try to answer to the best of my knowledge. I assume, as per details provided by you, that overall net profit from f&o trading is 1 lakhs
1. Yes, you have to go for audit as total income is more than 2.5 L and trading income is less than 8%.
2. No. Its total income taken before any deduction. But I have a plan see below.
3. You can plan it for zero tax. It depends on how many tax deduction you can avail (or want to avail).

NOW
Computation of your income
Salary income - 2.4 L
Trading income - 1.0 L
FD interest income - 0.4 L

Total income - 3.8 L

Less 80C - 1.5 L

Taxable income - 2.3 L

Hence no tax payment liability but audit required.
______________________

If you want to avoid tax audit, then declare under presumptive income of 8%

NOW
Computation of your income
Salary income - 2.4 L
Trading income - 2.4 L
FD interest income - 0.4 L

Total income - 5.2 L

Less 80C - 1.5 L
Less additional investment in NPS - 0.5 L
Total Taxable income - 3.2 L

Now you have to look for deductions for 20-25 K more so as to avail zero tax. There are few, but I do not remember all at the moment. Further as per new IT amendment, you will get a tax deduction, if you limit your taxable income below 3 L

Do some homework and you will be free of audit and tax, both.

* But one point, if you opt for presumptive scheme, perhaps you have to go for presumptive scheme for next 5 years or so. Check this point too.

 

[Rohitt]

Traderniftybull sir ,
1) are you sure that the total income of 2.5 lakhs is before any deductions ?
2) can I opt for presumptive scheme as I have not done any equity trading ?

Thank you sir