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

[shravank30]

Dear i am intraday trader in stock market. From 2009 to till i never submitted it return as i think i have each year loss. But my total TURNOVER of year is more than 2 crore each year from 2009. So is their any requirement to submit any document to Incometax dept. I have no profit any year.
Before 1 month their is notice from Tax dept for "Non filing of Income tax return" from 2009.(Information code :- CIB-321, Description :-Share transaction 20000 or more)
After consultaion from local consultant, I send reply of "Non taxable income fro 2009-2010,2010-2011,2011-2012.
On same website i read that for Intraday trader their is no requirement of to do Audit, which is required only for derevative trader.

From 2012 i am Senior Citizon.
Please help, any TAX AUDIT required if their is loss??
Is their panelty for 2009,2010,2011,2012?
please i am under very big tension ...pl guide me.
URGENT

Hi
If you have genuine losses for the concerned years, you have nothing to worry.
There is no word like "I think" where income tax is concerned
You have traded intraday only in equities or derivatives also?
If you have traded only in equity and have never done any derivative trade whatsoever, you are not required to do any tax audit.
Please be sure what you say because derivative trades even if squared up same day do not qualify as intraday trades and come under the head of business income.
My advice is you submit your return for the relevant years to the ITO office from which you have received the notice ,together with a statement showing the Date, Script, Qty, Purchase rate, sale rate Brokerage paid, Nett profit or loss and prove that you had a loss all these years.
As such the 1st thing you should do is dig up all the contract notes for all these years, arrange them date wise to ensure none are missing and then prepare the statement in Excel with the columns as suggested above for each financial year separately
Please also take care to disclose your total income from all sources in the returns and not only the stock market trades portion
You can also enclose the xerox copies of the contract notes to prove your claim

In future it is advised that if you trade in the stock market and even if have losses in the trades, you should submit your return

 

[prabhsingh]

If a CA is hired,what are his/her charges on yearly basis?

 

[shravank30]

If a CA is hired,what are his/her charges on yearly basis?

It will depend on the quantum of your trades and what type of incomes you have

 

[desiwarrenbuffet]

hello sir,
I have my another business and Im filling my returns for it.Do i have to show my shares transaction separately in my returns if my transaction r more.

 

[desiwarrenbuffet]

I have started trading just now.
Do i have to register myself as trader.
Do i have to keep bills of all the equipment ie computers,tables.I have purchased.
Do i will have to show that i have leased a place and iam paying rent for it.

Please guide me.

 

[alokdaga]

1. As far as I understand that when one is trading in futures - the turnover calculated is the difference between buy and sell per transaction.... Is it right?

2. If the above is right and suppose one does a turnover of let us say more than 1 cr or so.... and the profit is around 15 lac .... then can he just show 8% profit ?

I read somewhere that if you are showing 8% profit on turnover, then neither audit is required nor maintenance of books ....

 

[a1b1trader]

1. As far as I understand that when one is trading in futures - the turnover calculated is the difference between buy and sell per transaction.... Is it right?

2. If the above is right and suppose one does a turnover of let us say more than 1 cr or so.... and the profit is around 15 lac .... then can he just show 8% profit ?

I read somewhere that if you are showing 8% profit on turnover, then neither audit is required nor maintenance of books ....

AFAIK
Audit is compulsory, if your turnover is over 1 crore.

 

[mmca2006]

1.
I read somewhere that if you are showing 8% profit on turnover, then neither audit is required nor maintenance of books ....

It is applicable when your turnover is less than 1 cr u/s44AD. If turn over exceeds 1 cr audit is must u/s 44AB.

 

[shravank30]

I have started trading just now.
Do i have to register myself as trader.
Do i have to keep bills of all the equipment ie computers,tables.I have purchased.
Do i will have to show that i have leased a place and iam paying rent for it.

Please guide me.

You have to take a PAN number in case you dont already have one.
Other then that no other registration is necessary from income tax angle
If you are going to show all your trades as business income including equity trades, then you can claim rebate for all the expenses and rentals etc. you make and depreciation on all the equipment and furniture you buy from the profits earned.
You should keep bills and receipts for all payments you make in case your case is picked up for scrutiny or your auditor demands to see the same
You dont have to compulsorily hire a place to do business as you can do the same from your home also.
However, for sake of ease or other compulsion, you hire a place, you can show the rentals as expense and reduce the same from your profit for tax calculations

 

[poortrader]

Hi Tax Experts,
1) Can business loss (from FnO) be set off against short term capital gains also in same financial year?
2) Can F&O carried over be set off against interest from FD in next year?
3) Books of accounts is required to be kept (mandatory) under which conditions at present?
4) If I filed returns for FY2012-13 only this month, for how long can it be revised if required?
5) If I have say 1 lakh long term capital gain this fiscal (shares bought more than 2 years ago) and also long term capital loss of 20000 (bought around 13 months ago), then my net long term capital gain will be 80000. is that right?
6) I understand that - Getting loan from father or mother, and using it for trading can be used to deduct interest paid on this loan from the income (trading) as expenses. Now if loss in trading is 1 lakh and interest is 1lakh, can this 2 lakh be carried forward as business loss to adjust for future income from trading in next fiscal/upto 8 years?