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

[carnot11]

I have converted my shares into stock in trade, And trading will be my main business. Can I claim expenses paid towards genuine salary to a friend for accounting and clerical work under this business.

Hi,

When you say - " converted " how did you do it ?

In other words prior conversion they were not stock in trade, then what were they and how ?

As far as I know --

For income under the head " Business / profession ", expense related to this " business / profession " which is justifiable, acceptable, direct, actual and genuine may be deducted from the gains / profits --- subject to IT officer assessment and approval.

Enjoy,
CArnot

 

[madhavareddy1203]

Hi guys,

I left my job in 2011 feb. Up to that i have paid IT regularly.

Than after i entered to stock market as full time trader. ( only F&O and mcx). I have made huge losses in these years . i didnt file any returns these years. Now i want file returns for these financial years.
2011- 2012
2012-2013
2013-2014
2014-2015

today i met one guy he is ready to file returns with losses ( losses for only 2 years). he is charging 500 per 1 year returns.

He asked some statemetnts.
1. Bank statement -- i collected through online. available.
2. loss statemnt from stock market. -- for this i logged in my back office... but where can i find these statemnts.. ( profit and loss)???

-- is this ledger balance or how to get my complete profit and loss statemnt ??

Plz guys advice??

 

[carnot11]

Hi guys,

I left my job in 2011 feb. Up to that i have paid IT regularly.

Than after i entered to stock market as full time trader. ( only F&O and mcx). I have made huge losses in these years . i didnt file any returns these years. Now i want file returns for these financial years.
2011- 2012
2012-2013
2013-2014
2014-2015

today i met one guy he is ready to file returns with losses ( losses for only 2 years). he is charging 500 per 1 year returns.

He asked some statemetnts.
1. Bank statement -- i collected through online. available.
2. loss statemnt from stock market. -- for this i logged in my back office... but where can i find these statemnts.. ( profit and loss)???

-- is this ledger balance or how to get my complete profit and loss statemnt ??

Plz guys advice??

Hello madhavareddy1203,

I am not an expert, but below is what I find on the net -

QUOTE
--------

Disadvantages of filing a late return

As per Income Tax Department of India : “Aa tax return may be furnished any time before the expiry of two years from the end of the financial year in which the income was earned’. This means that if you earned your income during FY 2009-10, you may file a belated return anytime before 31st March, 2012 ” . But there are some disadvantages if you dont file your returns on time . They are
•You will not be able to carry forward your Business loss (Speculation or otherwise) , capital loss , loss due to owning and maintaining of race horses.
•Loss of Interest on refund : You may loose interest on refund u/s 244A specially in case if you are claiming a Major amount as refund.
•You cannot revise your return.

NOTE: Dear Friends, the above article does not mean to encourage people for filing late return but only to make taxpayers aware about the provision of IT act and help them taking informed decision.

This is a guest article written by Mr. Rishabh Parakh who is a Chartered Accountant and Director at Money Plant Consulting

-----
UNQUOTE

The source is the following link --

http://www.jagoinvestor.com/2010/01...tax-returns-itr-deadline-and-still-enjoy.html

Hope it helps.

Enjoy,
CArnot

 

[Smart_trade]

Hi guys,

I left my job in 2011 feb. Up to that i have paid IT regularly.

Than after i entered to stock market as full time trader. ( only F&O and mcx). I have made huge losses in these years . i didnt file any returns these years. Now i want file returns for these financial years.
2011- 2012
2012-2013
2013-2014
2014-2015

today i met one guy he is ready to file returns with losses ( losses for only 2 years). he is charging 500 per 1 year returns.

He asked some statemetnts.
1. Bank statement -- i collected through online. available.
2. loss statemnt from stock market. -- for this i logged in my back office... but where can i find these statemnts.. ( profit and loss)???

-- is this ledger balance or how to get my complete profit and loss statemnt ??

Plz guys advice??

One cannot carry forward the loss if the return is not filed in time.So you can file IT returns and claim and carry forward the loss only for FY 2014-15 .

Smart_trade

 

[gsrikanth]

I have accrued interest about Rs.1.5 lakh on my housing loan for which I will be claiming refund from IT. I have received interest income on my SB a/c from some nationalaised banks for Rs.13000/- on which TDS @ 10% has been deducted.
Query is - Whether I can setoff tax due on sB a/c interest againsgt my refund claim while submitting the IT return or should I pay tax on SB interest for balance portion (30%-10%) and then claim refund.
Thanks
Srikanth

 

[carnot11]

I have accrued interest about Rs.1.5 lakh on my housing loan for which I will be claiming refund from IT. I have received interest income on my SB a/c from some nationalaised banks for Rs.13000/- on which TDS @ 10% has been deducted.
Query is - Whether I can setoff tax due on sB a/c interest againsgt my refund claim while submitting the IT return or should I pay tax on SB interest for balance portion (30%-10%) and then claim refund.
Thanks
Srikanth

Hello gsrikanth,

In my opinion for the AY 2015-2016 you should proceed as follows -

step 1 - compute your taxable income,
step 2 - check and confirm your tax credits
step 3 - calculate the tax payable (or refundable)
step 4 - pay your tax (if applicable)
step 5 - file your returns before due date

The earlier the above process is completed, the better it is.

Do consultant a professional person on income tax matters before deciding further course of action.

Enjoy,
CArnot

 

[Brill]

During FY 2014-2015, i had an annual pension income of 90,000/-. and traded intraday equity and futures - Both very low level trades. and profitable by 3000 on equity and 8000 on futures.

My query - should i file income tax return? if yes which form to use?

Thanks in advance.

 

[carnot11]

During FY 2014-2015, i had an annual pension income of 90,000/-. and traded intraday equity and futures - Both very low level trades. and profitable by 3000 on equity and 8000 on futures.

My query - should i file income tax return? if yes which form to use?

Thanks in advance.

Hello Brill,

I am not an expert in Indian taxation, but in my opinion -

Assuming that you have been filing IT returns regularly for the years gone by, I see no reason why you should stop filing your IT returns now. Even if you have no taxable income, do file your IT returns (showing tax payable as nil).

The temptation to avoid filing returns is very strong especially when you have low level trades / negligible profit / low income, but do not fall for it, be firm and file your IT returns.

Now the question of which form to use ?

It is well known that gains from F&O segment fall under the income head -
Income / gain from Business / Profession, hence you should use the form ITR 4.

Do consult a specialist on taxation matters before deciding further course of action.

Brgds,
CArnot

 

[Brill]

Dear CArnot,

Thank you so much for your valuable opinion.

Regards,
Brill.

 

[skjanghu]

I am from Bangalore and can help you out

I am planning to start an investment firm. I will trade on behalf of others (in their account) and recieve 50% of their profit after their tax deductions. How much I have to pay if I vl earn 10 Lac a year on their account.
Thanks in advance and you can PM me your contact details.
Thanks and Regards
Sanjay Kumar