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

diosys · #**101** 20th August 2007, 04:34 PM

Quote:

Originally Posted by yoogi

diosys, thank you so much.

Looks like one will be better off by buying farm lands around city than stocks. When the city expands, there is a long term capital appriciation and farm returns are definitely better than stock dividends.

Only problem is lack of liquidity of such assets and the magnitude of one time investment that is necessary to make it profitable.

Well said Yoogi but please be sure that the land that you buy should be outside the perimeter of 8 Km from the municipality limits to be eligible for exemption from Capital Gain....

nsaivamsi · #**102** 20th August 2007, 11:47 PM

Quote:

Originally Posted by diosys

Dear Sir....

Let me dispel your doubts....

What Mr Nitya Says is correct and what I say is also correct....

It all depends under which head do you wish to get taxed....If you get taxed in Business income (even dealing in shares can) then you are liable for straight forward 30% (or according to the tax slab you fall in if you are an individual) taxation otherwise the normal rule of 10% taxation would be applicable to you...

If you are still having a doubt then please feel free to contact again...

Further more if you wish more clarity on the subject you might wish to refer the first page of this thread wherein i have explained in the 3rd (i think) post the detail analysis as to how to determine your tax liability in case of day trading...Please refer that also...

Thank you very much for ur valuable information sir....

finally i want to know for my type of scenario which tax rate is applicable :-

I am trading through my spouse(housewife) trading account . Can we claim this under individual tax rate of 10% ??

When(date) and for what amount do we need to pay the tax??

Do we get any form from govt to pay this much tax for capital gain?

Regards,

VAMSI

diosys · #**103** 21st August 2007, 09:10 AM

Quote:

Originally Posted by lvgandhi

Dear Diosys,
I am closely following the thread. Really nice job. Your last sentence is worth in gold.

Thank You Sir for the lovely comments !!!

diosys · #**104** 21st August 2007, 09:15 AM

Quote:

Originally Posted by nsaivamsi

Thank you very much for ur valuable information sir....

finally i want to know for my type of scenario which tax rate is applicable :-

I am trading through my spouse(housewife) trading account . Can we claim this under individual tax rate of 10% ??

When(date) and for what amount do we need to pay the tax??

Do we get any form from govt to pay this much tax for capital gain?

Regards,

VAMSI

Dear Vamsi,

First let me clear that if you are trading through your wife's account then what ever the income accrues would be taxed in her hand and not yours...

Whether you fall in 10% category or 30% would depend upon the quantum and nature of transactions done by you....

What i would suggest is that do an honest introspection of yourself and try to reach a conclusion whether you are a trader or an investor....If purely a trader then 30% otherwise in all other cases 10%....Why i write purely word is because it should be in it's entirety i.e. only trading...

Hence, in your case i would suggest go for capital gain section (provided there is no heavy day trading) and let the department come up with a notice....If that happens then lets see...

All in all it would depend upon your own self introspection of oneself...

nsaivamsi · #**105** 21st August 2007, 12:00 PM

Quote:

Originally Posted by diosys

Dear Vamsi,

First let me clear that if you are trading through your wife's account then what ever the income accrues would be taxed in her hand and not yours...

Whether you fall in 10% category or 30% would depend upon the quantum and nature of transactions done by you....

What i would suggest is that do an honest introspection of yourself and try to reach a conclusion whether you are a trader or an investor....If purely a trader then 30% otherwise in all other cases 10%....Why i write purely word is because it should be in it's entirety i.e. only trading...

Hence, in your case i would suggest go for capital gain section (provided there is no heavy day trading) and let the department come up with a notice....If that happens then lets see...

All in all it would depend upon your own self introspection of oneself...

diosys, thank you so much ....

rrdesai_goa · #**106** 23rd August 2007, 03:50 PM

Great thread. Amazing amount of info in one place and lucidly explained, more than what's available in searching various sites across the net.

Thanks a ton!

sanx · #**107** 24th August 2007, 05:45 PM

Quote:

Originally Posted by diosys

Dear Sanx...

1.) You have not mentioned whether you are dealing in derivatives or cash only...I am assuming that you are dealing in derivatives...Even if you earn 1000 or 10000 or 10000000 it does not matter....In the case of an Individual there are always tax slabs...it does not matter how much you earn....Only in cases other than Individual and HUF the others have a flat rate of taxing system...Please also note that if you are dealing in derivatives and your total tournover (as mentioned by you is correct way of determining that) is in excess of Rs. 40,00,000 then you are liable to get your books audited by a Chartered Accountant otherwise there is a huge penalty of Rs. 1,00,000....Please be careful here

2.) How much tax that will be payable can only be determined if the entire income of the person is known...I have given the method to calculate the tax liability two posts before....Please refer to that...

3.) Even if you buy stocks for long term out of intra day profit then also you are liable to pay tax on this profit....

4.) Please note that PAN has been made mandatory for all demat accounts and similarly you would also have furnished the same....Now there is a report called AIR (Annual Information Report) which is submitted by the exchanges to the Income Tax Department highlighting the amount of transactions done on a single PAN....Hence if not today then tomorrow certainly you would be caught...Then what would follow you cannot imagine...Then would levy HUGE penalty and would certainly initiate prosecution against you...I am not from the Income Tax department hence please be sure that there is no bias in my words....What is said is very much possible if it is not declared...One word of caution to you is to act as a responsible citizen...

TAX Planning is Healty....Tax Avoidance is accepted.....TAX evasion is worth visiting the jail...

Diosys , thanks for clarifying.

Derivatives you mean ,futures and options right ?
What if i am doing only in pure cash ?

prasathvishnu · #**108** 24th August 2007, 10:49 PM

Hi,

I worked in two companies in the previous financial year.

Company X - Apr 2006 to Jun 2006
Company Y - Jul 2006 to Mar 2007

My total salary in Company Y during the period was around 40k. There was no tax deduction. Though, I got the Form-16.

My total salary in Company Y during the period was around 1.5 lakh. After savings and deductions, it was less than 1 lakh. So they gave only the tax calculation sheet with company sign and seal, refusing to give Form 16 since there was no tax deduction.

In the mean time, I withdraw the PF amount of Rs.6300 from Company X. I dont know whether the tax was deducted or not. How to calculate tax for the same?

Since I dint get the Form 16 in time, I was unable to file my returns. Please help me in these.

> How to calculate the tax and late fine with interest.
> Where to pay the tax?
> What is the procedure to file my returns late (without Form 16)?

Any help would be appreciated much. Thanks a lot in advance.

diosys · #**109** 25th August 2007, 08:59 AM

Quote:

Originally Posted by sanx

Diosys , thanks for clarifying.

Derivatives you mean ,futures and options right ?
What if i am doing only in pure cash ?

Dear Sanx,

It is correct that derivatives means all the above listed by you....

Secondly my explanation also holds good for equity trading in cash....

diosys · #**110** 25th August 2007, 09:04 AM

Quote:

Originally Posted by prasathvishnu

Hi,

I worked in two companies in the previous financial year.

Company X - Apr 2006 to Jun 2006
Company Y - Jul 2006 to Mar 2007

My total salary in Company Y during the period was around 40k. There was no tax deduction. Though, I got the Form-16.

My total salary in Company Y during the period was around 1.5 lakh. After savings and deductions, it was less than 1 lakh. So they gave only the tax calculation sheet with company sign and seal, refusing to give Form 16 since there was no tax deduction.

In the mean time, I withdraw the PF amount of Rs.6300 from Company X. I dont know whether the tax was deducted or not. How to calculate tax for the same?

Since I dint get the Form 16 in time, I was unable to file my returns. Please help me in these.

> How to calculate the tax and late fine with interest.
> Where to pay the tax?
> What is the procedure to file my returns late (without Form 16)?

Any help would be appreciated much. Thanks a lot in advance.

Dear Parsathvishnu,

Withdrawal from PF is tax free hence there is no liability towards it...

Even if you have missed you due date to deposit the return then also there is no penalty till Mar, 2008....So need to worry....

Since your return is not late so you could file it easily without Penalty....

Secondly to be able to give you the exact details relating to tax payable and interest thereon i would need to know the breakup of your salary...If you are uncomfortable in posting it here then PM me the details and i would revert to you...

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