Looking for a CA for help in derivative trading taxation

[nac]

Turnover in this case is total profit +total loss in all transactions as I understand........ And I thought the turnover limit for audit is 60 lakh?

Because trading fno is treated as a business so normal business turnover rule applies........?

Yes
If I remember correct, from April 2012, it's 1 cr.
I don't know what you mean by "normal business t/o rule". If you mean, we have to take sale value as turnover for calculating t/o for derivatives trading, than its NO (up to my understanding).
Come on, we pay margin of 30k for NF (contract value is >3L) and
If a Bank Nifty option is trading @ .05 (5 paise), we pay just 1.25/- (One rupee and 25 paise), but it's notional value is >3L. That "rule" can't be applied here

 

[jallanankit]

Hi Friends,

Wants to know does I require Digital certificate to file ITR 4. My CA is telling me to get digital signature then only he is able to file ITR 4. This is New to me. Wants to know is this true.

Also, does this kind of Soft Digital Signature will do:
https://cleartax.in/Guide/BuyDigitalSignature

Hello Chintan..

This is true only if u r liable for Income Tax Audit.
Mere filing of ITR IV does not require u to digitally sign the return unless audit under any of the provisions of Income Tax Act is applicable on u!!

Regarding your second query on type of Digital Signature...
Any Digital signature from any vendor which is of Class - II will do.


Regards,
CA. Ankit Jallan

 

[chintan786]

Hello Chintan..

This is true only if u r liable for Income Tax Audit.
Mere filing of ITR IV does not require u to digitally sign the return unless audit under any of the provisions of Income Tax Act is applicable on u!!

Regarding your second query on type of Digital Signature...
Any Digital signature from any vendor which is of Class - II will do.


Regards,
CA. Ankit Jallan

Thanks Ankit.. Yes I have to get Audit done.

Regards,
chintan

 

[sanjay maheshwari]

Dear Sir,

I have seen Your reply in some Site and wish to confirm You ,about my status regarding income for Yr.ended 31.3.14 and seek Your valuable suggestion i.e
I had Short Term capital Loss of Rs.31,000.00
Share Derivative loss of RS.5,40,000.00
Shares Buy back amount received from the buy back of listed security of Rs.3,60,000.00-long term Capital gain -10% without Index
Insurance and Mutual Fund Commission of Rs.74,000.00
Expences Rs.40000.00
Interest Exp. from Bank against Gold Loan 80,000.00
80 C investment of Rs.100000.00

Please suggest me the appropriate I.T.R to be filled and calculation to be done.

I will be highly obliged to get Your Valuable Advice


Thanks,

Best Regards,
Sanjay

 

[ritesh.bafna88]

Dear Sir,

I have seen Your reply in some Site and wish to confirm You ,about my status regarding income for Yr.ended 31.3.14 and seek Your valuable suggestion i.e
I had Short Term capital Loss of Rs.31,000.00
Share Derivative loss of RS.5,40,000.00
Shares Buy back amount received from the buy back of listed security of Rs.3,60,000.00-long term Capital gain -10% without Index
Insurance and Mutual Fund Commission of Rs.74,000.00
Expences Rs.40000.00
Interest Exp. from Bank against Gold Loan 80,000.00
80 C investment of Rs.100000.00

Please suggest me the appropriate I.T.R to be filled and calculation to be done.

I will be highly obliged to get Your Valuable Advice


Thanks,

Best Regards,
Sanjay

hello,

1. short term capital loss can be set off against long term capital gain from buyback. if you have brought forward STCL than pls make sure that the original return was filled before due date. at times it happens that the original return is filled late so even if you have carried the loss then, now you wont get the credit. this point gets many times overlooked by CA and the individual and during assessment it always create problems.

2. by the current snapshot of your income your liable to audit for derivative business. you can claim the derivative loss against LTCG and commission income balance carry forward

3. allowance of expenses and int exp will depend on why they occurred. if there is a direct nexus to the income earned than you can claim them.

4. your over all position seems to be a loss in derivative business hence 80C will not matter here much.

5. u r liable to file ITR 4.

in my professional opinion, get an audit done of derivative income before 30th sept 2014, set off your losses, get digital signature, file itr 4 before 30th sept 2014.

Regards
CA. Ritesh Bafna

 

[Grules]

what does a CA do in Audit ? Do they really audit the contract notes ? My interaction with few CA's looked like they were keen only on the PNL figure along with bank statement and would file accordingly. Isnt that easy money given they charge 15k for a years Audit . What should a CA do in Audit for us to carry forward losses for future set off against capital gains ? If CA does wrong filing and there is a query from Income tax , am i liable or CA for mistakes