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

[ankur07090]

I have one question please help...
I am investing in tax saving mutual fund (elss) through SIP mode.
For example I have only invested Rs 1000 in the month of may 2017, july 2017, nov 2017. (Rs 3000 from April to December 2017 only). Now I have to declare that elss investment in my investment form (deduction under 80C) that I have to submit in my company for tax benefits.

What amount should I mention in deduction under 80C since I had done investment through sip mode ? Whether it should be 3000 or any average value ?

 

[traderniftybull]

It should be 3000, total invested in ELSS in this year
BTW, it is the total amount that one invests till 31.3 of the concerned financial year

 

[NJ78]

To claim losses from F&O trading, which specific column of the ITR3 form should I enter the loss figure?

I can see under "Other Income" that there's a row for Profit on which STT is paid. Should I enter the loss figure in negative in this row, or is there some other part of the sheet specifically for entering F&O losses? Kindly assist.

My main income is from business while trading is a part-time venture right now.

 

[NJ78]

As a follow up to the above question...

Do I have the option to not declare & claim trading losses if they're not too high?

My current F&O loss is only 25,000 (25k) for the whole year on a turnover of 50,000 (50k). According to one of the local CAs, I have to go for auditing to claim this loss. This audit process is going to cost me more.

Given this, can I skip declaring this loss in ITR3 and not claim it, or do I have to compulsorily declare F&O loss as per I-T rules (even if I'm willing to bear the loss and pay tax on the rest on my income)?

 

[timepass]

Suppose Mr. A takes a loan of Rs. 10 lakhs from Mr. B. Both show it in their respective books of accounts. Now one of them dies after 2 years, and the whole amount of the loan is still outstanding.

So what happens to the loan afterwards ? Suppose the borrower dies ? Suppose the lender dies ??

 

[Raj232]

As a follow up to the above question...

Do I have the option to not declare & claim trading losses if they're not too high?

My current F&O loss is only 25,000 (25k) for the whole year on a turnover of 50,000 (50k). According to one of the local CAs, I have to go for auditing to claim this loss. This audit process is going to cost me more.

Given this, can I skip declaring this loss in ITR3 and not claim it, or do I have to compulsorily declare F&O loss as per I-T rules (even if I'm willing to bear the loss and pay tax on the rest on my income)?

IT law does not mention that the accounting needs to be certified by a chartered accountant. It states that accounting books need to be maintained. So in case of scrutiny, you should be able to show the books and prove that there is a loss indeed.

It is not compulsory to declare the loss, and you can pay tax on the rest of the income . The Taxman is also happy.
.. just my 2 cents.. (I'm not a certified accountant/ chartered accountant)

 

[Raj232]

Suppose Mr. A takes a loan of Rs. 10 lakhs from Mr. B. Both show it in their respective books of accounts. Now one of them dies after 2 years, and the whole amount of the loan is still outstanding.

So what happens to the loan afterwards ? Suppose the borrower dies ? Suppose the lender dies ??

Not sure where the confusion is .. lol.. probably i'm missing something.
From accounting perspective, the same has to be written off as Bad Debts (irrecoverable) in case the loan is not recoverable for whatever reason.
The loan given will be shown as an asset which would be received in future. When the loan is no longer receivable, the loan given (asset) would be reduced to that extent.

 

[timepass]

Not sure where the confusion is .. lol.. probably i'm missing something.
From accounting perspective, the same has to be written off as Bad Debts (irrecoverable) in case the loan is not recoverable for whatever reason.

"Written off as bad debt" would be if the borrower dies, and the lender writes it off in his books, right ?

Suppose the lender dies ?

 

[Raj232]

"Written off as bad debt" would be if the borrower dies, and the lender writes it off in his books, right ?

Suppose the lender dies ?

Yes, you are correct. If the lender dies and he is maintaining individual account (not a company) then he would not have any need to file the IT return in the first place. In case the lenders family members know about it, they may approach the borrower to replay the amount when due and count it in their inheritance . .. i think it would be tax free as part of inheritance.

 

[timepass]

Yes, you are correct. If the lender dies and he is maintaining individual account (not a company) then he would not have any need to file the IT return in the first place. In case the lenders family members know about it, they may approach the borrower to replay the amount when due and count it in their inheritance . .. i think it would be tax free as part of inheritance.

Assume there are no inheritors or the inheritors don't claim that loan, then how long the borrower carry it in his books ? How is it squared off, if ever ?