URGENT!!! Maintaining books of accounts

[mmca2006]

Heard that if one's profit is less than 8% of turnover, deadline for filing ITR is September. Is it?

yes u r correct , if profit is less than 8 % of turnover , you have to maintain books of accounts and have to conduct TAX audit here turnover means Profit + loss .U may refer follwing link for clarification---
1) http:// zerodha . com /z-connect/ traders-zone/taxation-for-traders/notice-under-section-139-9-possible-reason
2) http://www.traderji.com/taxation-ma...-tax-related-quieries-i-would-get-solved.html
3) http://www.traderji.com/taxation-matters/16885-tax-audit-share-trading.html

Is this alright to give our personal details like PAN, name, mobile, address and all to the one who will maintain books for us? Coz these details are present in contract note. And they wanna verify things online, so asked for DOB too...  That's pretty much everything, right?

The person who is just writing the books of accounts has no business with PAN, Mobile,DOB etc, he should just post the entries in system on the basis of purchase and sales transaction statement given by you , which u will get from your broker. However these information are needed for TAx audit and return filling , which can be asked by CA.
Why donot u simply show your profit @ 8% of turnover and pay tax accordingly , by which u can avoid Audit, books of accounts maintenance etc .First clear the concept of Turnover and consult a CA of you locality , read yourself the provision of sec 44AD of income tax act, search web site --caclubindia . com (remove gaps) , u will get your answer.

 

[nac]

Thank you guys.

Please consult a CA as he will guide you properly. My understanding is if Tax Audit is necessary then the date is 30 September but normal audit the date will be 31 July. But check from a professional CA.

Smart_trade

CA's junior is making books of accounts and he is the one said so. I just wanted to clarify it here. Sure, I will meet the CA and ask this in person.

yes u r correct , if profit is less than 8 % of turnover , you have to maintain books of accounts and have to conduct TAX audit here turnover means Profit + loss .U may refer follwing link for clarification---
1) http:// zerodha . com /z-connect/ traders-zone/taxation-for-traders/notice-under-section-139-9-possible-reason
2) http://www.traderji.com/taxation-ma...-tax-related-quieries-i-would-get-solved.html
3) http://www.traderji.com/taxation-matters/16885-tax-audit-share-trading.html

Is this alright to give our personal details like PAN, name, mobile, address and all to the one who will maintain books for us? Coz these details are present in contract note. And they wanna verify things online, so asked for DOB too...  That's pretty much everything, right?

The person who is just writing the books of accounts has no business with PAN, Mobile,DOB etc, he should just post the entries in system on the basis of purchase and sales transaction statement given by you , which u will get from your broker. However these information are needed for TAx audit and return filling , which can be asked by CA.
Why donot u simply show your profit @ 8% of turnover and pay tax accordingly , by which u can avoid Audit, books of accounts maintenance etc .First clear the concept of Turnover and consult a CA of you locality , read yourself the provision of sec 44AD of income tax act, search web site --caclubindia . com (remove gaps) , u will get your answer.

- Since he said he will get the books audited by his auditor, he asked me those details, I guess.
- I would, if I am in profit

 

[umesh12]

yes u r correct , if profit is less than 8 % of turnover , you have to maintain books of accounts and have to conduct TAX audit here turnover means Profit + loss .U may refer follwing link for clarification---
1) http:// zerodha . com /z-connect/ traders-zone/taxation-for-traders/notice-under-section-139-9-possible-reason
2) http://www.traderji.com/taxation-ma...-tax-related-quieries-i-would-get-solved.html
3) http://www.traderji.com/taxation-matters/16885-tax-audit-share-trading.html

Is this alright to give our personal details like PAN, name, mobile, address and all to the one who will maintain books for us? Coz these details are present in contract note. And they wanna verify things online, so asked for DOB too...  That's pretty much everything, right?

The person who is just writing the books of accounts has no business with PAN, Mobile,DOB etc, he should just post the entries in system on the basis of purchase and sales transaction statement given by you , which u will get from your broker. However these information are needed for TAx audit and return filling , which can be asked by CA.
Why donot u simply show your profit @ 8% of turnover and pay tax accordingly , by which u can avoid Audit, books of accounts maintenance etc .First clear the concept of Turnover and consult a CA of you locality , read yourself the provision of sec 44AD of income tax act, search web site --caclubindia . com (remove gaps) , u will get your answer.

Hi
Will you please clarify, that it is possible (above bold line).
What is the source of this info, any link etc.
Have you ever filed ITR, using this presumptive income facility.

I do not know, how true it is, but it is said that F&O traders, cannot go for presumptive tax (paying income tax on 8% profit of your turnover), like other businesses can do (irrespective of quantum of loss or profit). I do not remember the source of this info, but most probably it was in TJ itself.

 

[mmca2006]

Hi
Will you please clarify, that it is possible (above bold line).
What is the source of this info, any link etc.
Have you ever filed ITR, using this presumptive income facility.

I do not know, how true it is, but it is said that F&O traders, cannot go for presumptive tax (paying income tax on 8% profit of your turnover), like other businesses can do (irrespective of quantum of loss or profit). I do not remember the source of this info, but most probably it was in TJ itself.

What is the source of this info, any link etc.

please refer--http:// trak.in /tags /business/2012/07/09/tax-return-filing-futures-options-fo-trades/ (remove gaps).

Have you ever filed ITR, using this presumptive income facility

-

Not filed for me because i am a professional, 44AD is not applicable for me , if it was so , I would have been the first person to file ITR u/s44AD. However I filed it for my several clients.

I do not know, how true it is, but it is said that F&O traders, cannot go for presumptive tax (paying income tax on 8% profit of your turnover), like other businesses can do (irrespective of quantum of loss or profit). I do not remember the source of this info, but most probably it was in TJ itself.

Futures & options (F&O) is treated as normal business income, please refer above link and consult local experienced CA , also requesting you to go through TJ thread --http://www.traderji.com/taxation-matters/ , u will get extremely valuable information from member like diosys /shravank30 etc .

 

[mmca2006]

Thank you guys.


CA's junior is making books of accounts and he is the one said so. I just wanted to clarify it here. Sure, I will meet the CA and ask this in person.


- Since he said he will get the books audited by his auditor, he asked me those details, I guess.
- I would, if I am in profit

even if u r in loss , I will suggest to pay tax @8%. Suppose ur profit is 10000/- and loss is 20000/- , so total turnover is 30000/- (10000/-+20000/-) . Taxable income =8% of 30000/- =2400/- and pay tax on 2400/- and avoid cost of maintaining books of accounts and Tax audit.

 

[nac]

even if u r in loss , I will suggest to pay tax @8%. Suppose ur profit is 10000/- and loss is 20000/- , so total turnover is 30000/- (10000/-+20000/-) . Taxable income =8% of 30000/- =2400/- and pay tax on 2400/- and avoid cost of maintaining books of accounts and Tax audit.

You think it's a right way to do. Coz, it doesn't seems so... Even if it is, I don't intend to take this route.

 

[umesh12]

even if u r in loss , I will suggest to pay tax @8%. Suppose ur profit is 10000/- and loss is 20000/- , so total turnover is 30000/- (10000/-+20000/-) . Taxable income =8% of 30000/- =2400/- and pay tax on 2400/- and avoid cost of maintaining books of accounts and Tax audit.

Thanks mmca

Let us suppose that the total turnover of f&o trading is about 20 Lakhs, and we follow presumptive scheme and so the 8% of TT (ie taxable income) will come out to be 1,60,000 and so no tax will be payable (if the individual has no other income or other income is less than 40000)

I hope that the turnover is calculated as profit + loss of the trades, even if we follow presumptive scheme. Please confirm this.

Thanks

 

[mmca2006]

Thanks mmca

Let us suppose that the total turnover of f&o trading is about 20 Lakhs, and we follow presumptive scheme and so the 8% of TT (ie taxable income) will come out to be 1,60,000 and so no tax will be payable (if the individual has no other income or other income is less than 40000)

I hope that the turnover is calculated as profit + loss of the trades, even if we follow presumptive scheme. Please confirm this.

Thanks

yes ,that should be.

 

[nac]

Deadline is closing, I am yet to file ITR.
Any idea how long it takes to fill and file ITR4?

 

[Smart_trade]

Deadline is closing, I am yet to file ITR.
Any idea how long it takes to fill and file ITR4?

If you have your accounts data ready and put in Tally, then it takes 3-4 days with the help of a CA....if data is yet to be put in tally, then you will not be able to catch the deadline....as doing the preparatory work needs 20-25 days..

Smart_trade