My point was that we need someone to integrate all this into one product. So for e.g. zerodha offers it completely from trading account to making your IT returns file for you. We can give them our form 16 and other declarations, so they can make a final IT return file with audit certification and whatever else is needed. We than just need to upload it. As of now this part is still separate. If it is end-to-end then the product cost will also come down drastically from the present 10k.
Fire your tax related queries and i would get it solved!!!
While dwelling on this subject I guess there could be some work around. Experts may please comment.
The below is assuming that the turnover is less than 2 crs limit which was mentioned in the above post since all salaried traders will fall well within this limit:
If trading in derivatives is done in any one family members name who does not have any income (e.g. a housewife mother, grandmother) then is such a case if derivatives trading activity results in a loss for the year then no auditing will be needed since there in no other income, which is over the income tax chargeable limit. So this would take care of auditing thing if there is a loss. Whatever amount of the loss is.
However if there is profit then auditing will not be needed again if the profit generated in the year is under the income tax chargeable limit which is currently 2.5L. Most of the traders will again fall in this bracket.
Only if the trading profit is over income tax chargeable limit (i.e. > 2.5L) then audit stuff with come in picture. Large traders will belong here, who may not mind paying audit charges since they will anyways have to paid from profits only.
Correct me if my understanding is wrong or I have missed something obvious.
The below is assuming that the turnover is less than 2 crs limit which was mentioned in the above post since all salaried traders will fall well within this limit:
If trading in derivatives is done in any one family members name who does not have any income (e.g. a housewife mother, grandmother) then is such a case if derivatives trading activity results in a loss for the year then no auditing will be needed since there in no other income, which is over the income tax chargeable limit. So this would take care of auditing thing if there is a loss. Whatever amount of the loss is.
However if there is profit then auditing will not be needed again if the profit generated in the year is under the income tax chargeable limit which is currently 2.5L. Most of the traders will again fall in this bracket.
Only if the trading profit is over income tax chargeable limit (i.e. > 2.5L) then audit stuff with come in picture. Large traders will belong here, who may not mind paying audit charges since they will anyways have to paid from profits only.
Correct me if my understanding is wrong or I have missed something obvious.
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Hi
You have posted, what I want to post but didnt post.
One can add wife and adult/college going child(ren) or siblings, with no income, in this list.
One can divide income among family members by dividing trading period/months among them. And if one has 4-5 such members in his family, one can generate 15-20 lakhs (may be more) of tax free income, using 80C deductions and other legal means.
Only thing is to provide initial capital by means of gifts (but not to ones wife) or loans.
IMO, even a loss above certain limit will be subject to audit, so one should take care of this limit.
You have posted, what I want to post but didnt post.
One can add wife and adult/college going child(ren) or siblings, with no income, in this list.
One can divide income among family members by dividing trading period/months among them. And if one has 4-5 such members in his family, one can generate 15-20 lakhs (may be more) of tax free income, using 80C deductions and other legal means.
Only thing is to provide initial capital by means of gifts (but not to ones wife) or loans.
IMO, even a loss above certain limit will be subject to audit, so one should take care of this limit.
You have taken two more steps from what I mentioned.
Tax saving and by increasing the head count, increasing non taxable income if the trading income is more than 2.5L or multiple thereof. What I felt that since the auditing stuff is not integrated, for traders trading infrequently and are smaller the work around may be the best option. The intension firstly not to save tax but to bypass the need of offline and disintegrated audit thing and related costs, which really I think does not carry any significance for a person whose main income is from salary and trading is his side vocation.
Regarding the loss limit you mentioned, I think there is no limit for loss, and hence the need to do audit, subject to conditions I mentioned in my above post.
Tax saving and by increasing the head count, increasing non taxable income if the trading income is more than 2.5L or multiple thereof. What I felt that since the auditing stuff is not integrated, for traders trading infrequently and are smaller the work around may be the best option. The intension firstly not to save tax but to bypass the need of offline and disintegrated audit thing and related costs, which really I think does not carry any significance for a person whose main income is from salary and trading is his side vocation.Regarding the loss limit you mentioned, I think there is no limit for loss, and hence the need to do audit, subject to conditions I mentioned in my above post.
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