Looking for a CA for help in derivative trading taxation

[skjanghu]

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

Dear Ritesh Sir,
I have a query:-
1. If i am doing a profit/loss turnover of 2000000
2. And final profit after cutting losses is 500000 (through F&O trading)
3. How much tax I have to pay?
4. Can i save something as a salleried employ?
5. What will be the rate of tax?
Thanks in advance

 

[chintan786]

Hi All,

Need advice on this statement. I have loss of the amount of Rs.1 Lacs. My CA telling me that this doesn't require audit. I can straight away file ITR 4.

@ Sh. Bafna.. is this correct?

Regards,

Chintan

 

[toocool]

Yes no need for audit

 

[Grules]

IF anyone can help will be great from your side.

I want to know if a senior citizen with no income and has made some profit in F&O ( around 2-3 lacs). Can that person straightaway file return without Audit ? Since its a profit.

IF yes , will the profit taxable be as per slab or is there a short term capital gain tax % which needs to be paid ? If a short term capital gain tax then what % needs to be paid by the person to Income tax while filing online.

 

[nac]

^
If your turnover is less than 1cr. and your profit (2-3L) is more than 8% of your turnover, you don't need to get your books audited. Else, you have to...

Tax has to be paid based on your tax slab. Income for F&O is not short term capital gains.

 

[ritesh.bafna88]

Hi All,

Need advice on this statement. I have loss of the amount of Rs.1 Lacs. My CA telling me that this doesn't require audit. I can straight away file ITR 4.

@ Sh. Bafna.. is this correct?

Regards,

Chintan

hello,

what is the total of your other incomes. is it crossing the base limit without adjusting for the loss?

thank you

regards
CA. RITESH BAFNA

 

[bbhanushali]

Thanks to Mr. Ritesh Bafna for giving a good clarification on derivatives (F&O) turnover calculations.

I will appreciate if a link can be posted where we can get the guidance note for reference, on such derivatives turnover calculations from ICAI or tax related authorities, so that any confirmation to either our CA or the tax authorities is at hand.

Many thanks in advance.
Regards,
B. Bhanushali

 

[toocool]

^
If your turnover is less than 1cr. and your profit (2-3L) is more than 8% of your turnover, you don't need to get your books audited. Else, you have to...

Tax has to be paid based on your tax slab. Income for F&O is not short term capital gains.

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........?

 

[Steve]

Regarding taxation doubts I was referred to this blog from zerodha,
there's a lot of doubts cleared here.
Hope this helps

http://www.traderji.com/brokers-trading-platforms/89121-zerodha-part-3-a-426.html#post987160

We have a big discussion on this here: zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified

Turnover is used to determine if you need an audit or not. If turnover is more than 1 crore, you need and if lesser than 1 crore and profit less than 8% you need..

Do check the post..

 

[chintan786]

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