Fire your tax related queries and i would get it solved!!!
Hiiiii...
I am having turnover query.....I am intraday trader.....Suppose on day 1 I have done 3 trades...
Trade 1= 500 loss
Trade 2 = 300 profit
trade 3= 400 profit
then at the end of day net profit is 200
On day 2....Again I have done 3 trades
trade 4= 800 loss
trade 5=500 profit
trade 6=200 loss
Then at d end of day net loss of day 2 will be 500
So my question is for calculating turnover wheather we should take end of day figure like in above example 200+500=700
or sum of individual trades outcome;i.e..
trade 1(500)+trade 2(300)+trade3(400)+trade4(800)+trade5(500)+ trade 6(200) = 2700
Which 1 is d correct way to calculate turnover...in short we need to take end of days outcome or individual trades outcome...
Thank u...
I am having turnover query.....I am intraday trader.....Suppose on day 1 I have done 3 trades...
Trade 1= 500 loss
Trade 2 = 300 profit
trade 3= 400 profit
then at the end of day net profit is 200
On day 2....Again I have done 3 trades
trade 4= 800 loss
trade 5=500 profit
trade 6=200 loss
Then at d end of day net loss of day 2 will be 500
So my question is for calculating turnover wheather we should take end of day figure like in above example 200+500=700
or sum of individual trades outcome;i.e..
trade 1(500)+trade 2(300)+trade3(400)+trade4(800)+trade5(500)+ trade 6(200) = 2700
Which 1 is d correct way to calculate turnover...in short we need to take end of days outcome or individual trades outcome...
Thank u...
Audit in business income is not compulsory if you meet both the following 2 criterias
1. Your turnover should be less then 1 crore
2. You should have a profit of atleast 8% of your turnover. For example your turnover is 50 lakhs but your profit is only 3 lakhs (It is less then 8% of the turnover), then you will have to get an audit done
1. Your turnover should be less then 1 crore
2. You should have a profit of atleast 8% of your turnover. For example your turnover is 50 lakhs but your profit is only 3 lakhs (It is less then 8% of the turnover), then you will have to get an audit done
Last edited:
@shravan and tax experts
Plz if you can reply to this
http://www.traderji.com/taxation-ma...ieries-i-would-get-solved-175.html#post878607
Plz if you can reply to this
http://www.traderji.com/taxation-ma...ieries-i-would-get-solved-175.html#post878607
Although I do not have much knowledge about land deals, I will give you some basic facts
1 As X & Y have inherited the land after death of the husband/Father, the date of purchase of land will remain same as year 1981
So LTCG will be applicable.
Now how to calculate the LTCG
You have to index the cost price with the current Inflation index
In 1981 it was 100 and now it is 852 so your cost price becomes 4,000X 852/100 nearly 34,000/-
You are claiming to have sold the land and taken cash payment for the same, which in my opinion is against the law.
Leaving that aside, you have not specified if both X & Y sold equal amounts of the land to the buyer from their share.
Presuming that to be the case then the folowing calculations will apply
Adjusted price of land Rs 34,000/-
sold 1/4 of this (I am not taking a few lechas into account.You can do that)
so cost of the land sold is 8,500/-
sale value is 10 lakhs
LTCG is 9,91,150/- for the entire deal
As 2 parties have sold equal amounts, each person has 4,95,575/- as LTCG
Please do recheck with a qualified CA as I am not very sure as I have personally not dealt with any such issue
Now 2nd part.
How to save tax
Under section 54 the seller of the property can claim for tax exemption; to avail the benefits seller must use entire profit (capital gain) to buy another house. The seller has two options, either he can buy another house within two year from sale of property else he can build a house in three years. Buyer can also buy a house 1 year prior to selling the house and still can avail the benefit under section 54. If after selling property, seller has not identified the property yet. The seller has to open a special account i.e. capital gain accounting scheme. All the withdrawal from this account should be made only for purchase of property. However if seller failed to buy a property within three years after selling property the whole amount will exposed to LTCG.
Under section 54 EC, seller can invest in bonds issued by National Highway Authority of India (NHAI) and Rural Electrification Corporation (REC). Limit for exemption under section 54 EC is Rs. 50 Lakh.
However STCG is being added to the person’s income and exposed to normal income tax slabs.
Conclusion
To save long term capital gain the seller has to buy a house property within two years of sale of capital asset or construct a house within three years. If seller is not able to identify a property he/she can open a capital gain accounting scheme’s special account and park the money until he finds the property (with limit of 3 years). Seller also can invest money in specific bond up to limit of Rs 50 Lakhs to save LTCG tax.
1 As X & Y have inherited the land after death of the husband/Father, the date of purchase of land will remain same as year 1981
So LTCG will be applicable.
Now how to calculate the LTCG
You have to index the cost price with the current Inflation index
In 1981 it was 100 and now it is 852 so your cost price becomes 4,000X 852/100 nearly 34,000/-
You are claiming to have sold the land and taken cash payment for the same, which in my opinion is against the law.
Leaving that aside, you have not specified if both X & Y sold equal amounts of the land to the buyer from their share.
Presuming that to be the case then the folowing calculations will apply
Adjusted price of land Rs 34,000/-
sold 1/4 of this (I am not taking a few lechas into account.You can do that)
so cost of the land sold is 8,500/-
sale value is 10 lakhs
LTCG is 9,91,150/- for the entire deal
As 2 parties have sold equal amounts, each person has 4,95,575/- as LTCG
Please do recheck with a qualified CA as I am not very sure as I have personally not dealt with any such issue
Now 2nd part.
How to save tax
Under section 54 the seller of the property can claim for tax exemption; to avail the benefits seller must use entire profit (capital gain) to buy another house. The seller has two options, either he can buy another house within two year from sale of property else he can build a house in three years. Buyer can also buy a house 1 year prior to selling the house and still can avail the benefit under section 54. If after selling property, seller has not identified the property yet. The seller has to open a special account i.e. capital gain accounting scheme. All the withdrawal from this account should be made only for purchase of property. However if seller failed to buy a property within three years after selling property the whole amount will exposed to LTCG.
Under section 54 EC, seller can invest in bonds issued by National Highway Authority of India (NHAI) and Rural Electrification Corporation (REC). Limit for exemption under section 54 EC is Rs. 50 Lakh.
However STCG is being added to the person’s income and exposed to normal income tax slabs.
Conclusion
To save long term capital gain the seller has to buy a house property within two years of sale of capital asset or construct a house within three years. If seller is not able to identify a property he/she can open a capital gain accounting scheme’s special account and park the money until he finds the property (with limit of 3 years). Seller also can invest money in specific bond up to limit of Rs 50 Lakhs to save LTCG tax.
the view of shravank30 is correct however blisscapital must preserve all documents relating construction of house specially contractor's bill, details of labour payment , bills of Raw material etc,, during construction period he should park the amount in capital gain scheme saving account which is not just like saving bank a/c, every withdrawal should supported by submission of specific forms, it is better he should consult a local SBI branch regarding withdrawal from capital gain scheme a/c . I think it is better to invest in NHAI/REC bond first and after 3 years he can use the money to construct the house.probably it is the easiest way and no tax is to be paid.
Tax Saving advise required, please help.
If we create a Trading Firm a group of 50 Pro Trader can we save more income tax as compared if traders trade individually. The idea is we can create non taxable level salary structure & claim salary of these traders as an expense, office rent, commuting expense etc.
Could you please advise us the best we can create a structure to save income tax & how much we can save in this way.
Please refer the link given in my signature to have more idea about Trading group idea.
If we create a Trading Firm a group of 50 Pro Trader can we save more income tax as compared if traders trade individually. The idea is we can create non taxable level salary structure & claim salary of these traders as an expense, office rent, commuting expense etc.
Could you please advise us the best we can create a structure to save income tax & how much we can save in this way.
Please refer the link given in my signature to have more idea about Trading group idea.
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