Are You Covered Under Tax Audit

[canikhil]

Because of either of these two?

1. I am setting of 7000 profit with charges and brokerages ending up negative net profit?
2. I want to carry over my losses so that I can set it off next year?

If that is the case, can I set off these losses with my other business profit? I am working as a freelancer.


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Tarun,

can you repost the facts of your case....

 

[tarun1313]

Tarun,



can you repost the facts of your case....

Income from other sources (freelancer) = 5lac+


Short Term Equity TurnOver = 24,000
Short Term Equity Profit = 3000
Charges = 400


F&O
Profit = 17000
TurnOver = 2,00,000
Charges = 23,000


Logically, I am having net loss of 23,000 if I consider charges. Otherwise I am having profit of 8.5% on turn over.





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[tarun1313]

Tarun,



can you repost the facts of your case....

Can you confirm considering my facts in above post?


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[travi]

Can you confirm considering my facts in above post?
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To carry forward losses, you need Audit.
Since your income (+5L) is in higher slab, you need Audit.

The 8.5% of your TO doesn't hold unless you are will to pay flat tax on 8% of your TO.

EQ income is speculative STCG, cannot offset with losses from non-speculative losses.

 

[TraderRavi]

many traders daytrade in Equities segment , audit rules/scenarios same as in FNO as discussed in this thread ?

if other business income 3 lakhs
FNO loss 20,000
Equity (daytrading) profit 20,000
what shall be net income ? as profit and loss are in different segments.

 

[tarun1313]

many traders daytrade in Equities segment , audit rules/scenarios same as in FNO as discussed in this thread ?



if other business income 3 lakhs

FNO loss 20,000

Equity (daytrading) profit 20,000

what shall be net income ? as profit and loss are in different segments.

As far as I could understand so far:
1. Short Term capital gain on equity
2. Loss carry forward in FNO (business income)
3. Audit mandatory




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[TraderRavi]

As far as I could understand so far:
1. Short Term capital gain on equity
2. Loss carry forward in FNO (business income)
3. Audit mandatory

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1. short term capital gain only if taken delivery in demat account.
daytrading equity comes under speculation.

 

[traderniftybull]

many traders daytrade in Equities segment , audit rules/scenarios same as in FNO as discussed in this thread ?

if other business income 3 lakhs
FNO loss 20,000
Equity (daytrading) profit 20,000
what shall be net income ? as profit and loss are in different segments.

To best of my knowledge
total income will be
3lakhs -20 k (FNO loss adjusted with other business income) + 20 k daytrding aka speculative profit
= 3.00 lakhs

audit will depend on turnover

 

[tarun1313]

To best of my knowledge

total income will be

3lakhs -20 k (FNO loss adjusted with other business income) + 20 k daytrding aka speculative profit

= 3.20 lakhs



audit will depend on turnover

But Audit will be mandatory because FNO 8% condition is not met?


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[TraderRavi]

many traders daytrade in Equities segment , audit rules/scenarios same as in FNO as discussed in this thread ?

if other business income 3 lakhs
FNO loss 20,000
Equity (daytrading) profit 20,000
what shall be net income ? as profit and loss are in different segments.

As per zerodha varsity
"Speculative (Intraday equity) loss can’t be offset with non-speculative (F&O) gains, but speculative gains can be offset with non-speculative losses."

what this means is , in above example FNO and equity P&L cancel each other , so net income is 3 lakh only.