Discussion on section 44AD of IT Act

[timepass]

Re: Zerodha Part 3

All the taxation related posts will be shifted to taxation threads in the evening to keep this thread clean.

ST

Thank you. I was wondering how to collect them in one place - from this thread as well as from the "General Chit Chat" thread (the older posts however useful seem to get kind of lost in that thread).

 

[candle]

Re: Zerodha Part 3

"Atithi Devobhava"!!!:lol:

And " Ghar ki murgi daal barabar ??"

Smart_trade

And Trader bechaara... " Naa Ghar Ka Naa Ghaaat Ka ".:lol::lol::lol:

 

[columbus]

Re: Zerodha Part 3

@

Really sad , that IT department did not respond.

At present around 7K is required to take an exposure NIFTY lot.
So the total turn over is around 7K+7K =14K for buy+sell of ONE nifty lot.

But now,TURNOVER is calculated as 25*8900+25*8900=4.45Lakhs for a lot.

That means TURNOVER is multiplied a factor of 320.

I hope IT deptt. will make a note of it !!!

Turnover is not calculated like that columbus, it is still the sum of settlement profits + Losses. It is explained here: http://zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified

The issue is with section 44AD. Apparently there will be over 5 million automated notices that will be sent by the IT department after the end of this FY. So something has to be done before this happens.

No one else did it (we asked our clients, ICAI, the exchanges, other members). So we thought why not do this ourself, not as Zerodha but as an individual. an online petition addressed to minister of finance, minister of state - finance, and chairman CBDT, to exclude business of trading from Section 44AD.

https://www.change.org/p/minister-o...-securities-and-derivatives-from-section-44ad

We have put this up on change.org. So irrespective of who you are (client, competitor, onlooker), if you want the derivative markets to be vibrant, make sure to support the cause and get as many people to support it as possible. if we can make this loud enough, the ministry will be forced to take an action.

@zerodha,

".............Firstly, turnover in reality is not the contract turnover but the sum of settlement profit and losses.
So if 100 x Nifty is bought at 8500 and sold at 8510, the turnover is Rs 1000 ( the profit made on this trade)
and not Rs 1710000 ( 8500x100 + 8510x100). Sum of all such profits and losses make up for the total turnover
in a financial year. ........" (From your web site)

I was telling the same thing.If a person is making profit on Nifty lot then ,the gain should be on the Exposure
Margin but not on the absolute value of nifty.