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

[Raj232]

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 ?

The borrower can keep showing that he has to repay someone, so in that case it will not be shown as income as it is payable back. Since in reality he is not paying it back, it will just continue showing as repayable forever.

 

[timepass]

The borrower can keep showing that he has to repay someone, so in that case it will not be shown as income as it is payable back. Since in reality he is not paying it back, it will just continue showing as repayable forever.

But how can you show it repayable to a dead person ? Assuming that the loan was given through net banking, and that IT department knows, through the Aadhar number, that the lender is dead. What if there is no one to take over the loan ?

 

[Raj232]

But how can you show it repayable to a dead person ? Assuming that the loan was given through net banking, and that IT department knows, through the Aadhar number, that the lender is dead. What if there is no one to take over the loan ?

IT dept does not keep track of lender dead or alive. However, if loan has to be repaid, it has to be repaid. That you dont repay it and just let it remain outstanding in your books is your choice. If IT dept knows that the lender is dead so what.. the loan is still repayable to the heirs.
IT dept will not see whether you repaid it or not, it sees whether any income is taxable or not

In recent times, corporate are showing huge amounts as repayable to Banks (NPAs), with no intention of paying back.
As good as lender is dead in your example... thus Govt has asked to come to a conclusion of the same.

 

[jain.er]

I filed an ITR2 return in july and it is yet to be processed. Should I worry? It never so late, many of my friends have got process notice

Sent from my BLN-L22 using Tapatalk

 

[lonstud]

Hello,

I am a resident Indian and I file my IT returns showing P/L from trading F&O as business Income. My accounts are liable to be audited u/s 44AB. I have friend settled abroad, would be classified as non-resident as per IT laws. I executed few trades on my friend's behalf through my trading account and now I need to transfer the profits(more than Rs. 5 lakhs) to my friend. Now, the query is how should I show the transfer of profit to my friend's account so that I am not liable for the Income Tax for his share of profits?

Options considered:
1) Show the profits as payment made for consultancy/advisory services provided by my friend and transfer the amount to an NRO account maintained by my friend in India. In this case, since I am making payment to non-resident, I am not sure if I need to deduct TDS (194J is only for resident) or follow any additional documentation. Also, since this might be classified as foreign payment for services, should I try to avoid this route.

2) show the profits as payment made for consultancy/advisory services provided by my friend's father/mother. Here, parents are resident Indians. In this case, i think i have to deduct 10% TDS u/s 194J.

Please suggest if any of the above options are feasible or any alternate method to transfer profits to my friend.

 

[iTrade]

@canikhil : Need some help. I forgot to pay advance tax for my trading gains on 15th march 18. Can I pay them ? Challan 280? AY2018-19 is what I have to select, correct? Just want to avoid interest at the time of filing actual returns. So asking. Thanks.

 

[canikhil]

1, Challan will remain same i.e. 280. type of payment will code 300 - self assessment tax

I suggest you use a tax calculator to determine your interest liability till date before paying.

 

[bbhanushali]

@canikhil/seniors : Could you please guide as a trader (and when in profit) when are the advance taxes to be paid (i.e. are there fixed months/quarters that we need to deposit advance taxes) and if so how to calculate these taxes (i.e. what % of profits are liable to be paid as taxes, since we will be going thru different slabs - assuming if we are in profit all the while and also what happens if in last quarter we are in loss; in that case can we adjust those and ask for refund). My trades would be intra-day futures segment only. Many thanks for your response.

 

[canikhil]

that depends on whether you are following 44AD presumptive taxation or normal taxation?

In case of presumptive taxation, there is no need for payment of advance tax in instalments. You just need to pay the 100% tax by 15 March.

However, if you are following normal taxation, then you need to pay as per the advance tax instalments on estimated profits.

For advance tax instalments refer http://www.moneycontrol.com/tax/duedate/whatdue-datesinstallments-for-advance-tax_664478.html

With regards to refund, the refund of any excess tax credit is to be claimed through tax return filing only.

 

[bbhanushali]

Many thanks for your kind response.