Looking for a CA for help in derivative trading taxation

#1
anyone here based in noida or NCR? I am looking for a CA who can help in taxation on derivative trading, especially for a salaried person. any help is appreciated.

thanks!
Nitin
 
#2
www.directshares.in

There is very good software available on the above site ( costing some Rs 4500 only one time). This software uploads your trades from your broker's contract and segregates derivative profit/loss / short term profits/ long term profits etc as per Income Tax norms. I am also studying it and will buy it soon.

Smart_trade
 
#3
www.directshares.in

There is very good software available on the above site ( costing some Rs 4500 only one time). This software uploads your trades from your broker's contract and segregates derivative profit/loss / short term profits/ long term profits etc as per Income Tax norms. I am also studying it and will buy it soon.

Smart_trade
taxation is another headache now, can u pls tell me what is the due date for filing returns, especially now that it is mandatory for derivative trders to get the books audited.
 
#4
hello, as there are queries related to taxation i can provide my inputs for the benefit of the members.

please feel free to ask.

one can also PM if he or she is not comfortable asking in open forum.

thank you.

CA. Ritesh Bafna
 

sunbim31

Active Member
#6
www.directshares.in

There is very good software available on the above site ( costing some Rs 4500 only one time). This software uploads your trades from your broker's contract and segregates derivative profit/loss / short term profits/ long term profits etc as per Income Tax norms. I am also studying it and will buy it soon.

Smart_trade
I have also tried this software and found extremely suitable for my/our taxation on trading and personal management .
I am requesting to Directshare people to introduce a concessional package for traderji members.
 

sunbim31

Active Member
#7
Please go through with this mail and reply from Directshare SW


Dear Mr Nathan

I have tried your software and found extremely suitable for my/our taxation usage.
I request you to Kindly introduce a concessional package for traderji members.
One of our member Mr R Murali has already talked with you in this regard.
Our Moderator Mr. Smart_Trade has also endorsed about your software.
You can see the site through this link

http://www.traderji.com/taxation-matters/88526-looking-ca-help-derivative-trading-taxation.html

Regards

Sunando Ghosal


support@directshares.in

10:50 AM (17 minutes ago)

to me
Sir,
Thank your very much for the mail and the posting in traderji website.

We offer 20% discount to traderji members.
To help us identify traderji membership, we would like the member to post a message in traderji website, about what they liked in direct shares software
and send us a link (also stating their traderji id)

Regards
Nathan
09884313247
 
#8
hello, as there are queries related to taxation i can provide my inputs for the benefit of the members.

please feel free to ask.

one can also PM if he or she is not comfortable asking in open forum.

thank you.

CA. Ritesh Bafna
Thanks Ritesh. My specific queries are:

1. Being a salaried person and having income from F&O trading, should I be filing ITR-4 to report profit and loss from trading along with salary?

2. Can I offset any net loss from F&O trading against other capital gains, like profits from company stock options or ESPP?

3. Do I need to create account books and get it audited before I file using ITR-4? I read somewhere that this is mandatory even if turnover is less than 1cr and if profit is less than 8%.

http://www.zerodha.com/z-connect/blog/view/taxation-simplified

4. How should I go about filling up ITR-4 myself?

Thanks,
Nitin
 
#9
www.directshares.in

There is very good software available on the above site ( costing some Rs 4500 only one time). This software uploads your trades from your broker's contract and segregates derivative profit/loss / short term profits/ long term profits etc as per Income Tax norms. I am also studying it and will buy it soon.

Smart_trade
Hi Smart_trade,

I have been using the above software for the past one year plus. I posted an earlier message about the same.

The support from Mr.Nathan has been excellent and thorough. He has made a number of changes in the software based on feedback given to him.

I strongly recommend Traderji members to go ahead and try this software.
 
#10
Thanks Ritesh. My specific queries are:

1. Being a salaried person and having income from F&O trading, should I be filing ITR-4 to report profit and loss from trading along with salary?

2. Can I offset any net loss from F&O trading against other capital gains, like profits from company stock options or ESPP?

3. Do I need to create account books and get it audited before I file using ITR-4? I read somewhere that this is mandatory even if turnover is less than 1cr and if profit is less than 8%.

http://www.zerodha.com/z-connect/blog/view/taxation-simplified

4. How should I go about filling up ITR-4 myself?

Thanks,
Nitin
hello,

my advice to you is

1. the FNO income is always considered as normal business income (by normal i mean not speculative). hence as and by far the tax treatment goes yes you have to file itr 4 which already has the head to show salary income.

2. that depends on when the ESOP or ESPP are issued to you. if its been more then one year than the profit is LTCG (as such a long holding is considered as investement.) the LTCG is exempt under tax so the profit is not available for set off. if less than one year of holding period than the stcg can be set-off against business loss.

for clarification: yes one individual can hold 2 separate portfolios.

3. undoubtedly there is a requirement to get accounts audited if 8% profit is not shown or to claim a loss in any business by virtue of section 44AD, if your current case i think u have a loss in FNO business hence it will be better to get the accounts audited and claim the loss to be carry forwarded for the coming years.

4. ITR 4 is lengthy form. it takes a long time to fill properly. i would suggest you to download free utilities available on internet for preparation of it returns. physical filing of the form may be confusing.

if your income is above Rs.500000 than efiling is complusory. income here means your total income from all sources.

if you are planning to go for an audit and if u r planning to claim loss and carry forward it to subsequent years than keep in mind that the last date of filling return is 30/09/2013.

if you fail to get accounts audited and fail to file return than you may have to pay penalty for late audit and you FNO loss wont be allowed to carry forward.

i hope i kept things simple and at par with the query.

thank you

CA. Ritesh Bafna

please note: the above are in my professional opinion and same may not agree with other professionals. please use with discretion.
 

Similar threads

Trade in Rs 20, No more % brokerage

Name:Phone:
Email:City:
State:
Are you a day trader?