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

Are you able to understand the replies and act accordingly to this thread ??

  • Yes, able to understand BUT NOT able to take suggested course

    Votes: 0 0.0%
  • Somewhat able to take desicions, BUT seek professional help in my area

    Votes: 0 0.0%
  • Find it tough to understand the replies hence always seek other professional help

    Votes: 0 0.0%
  • Not able to understand any of the replies !!!

    Votes: 0 0.0%

  • Total voters
    4
  • Poll closed .

canikhil

Well-Known Member
Bhai, very difficult to choose/suggest one, as both are not the right choices.
But one has to choose one, then for me paying 8% will be better one.
paying 8% is a loss making position in 95% of the cases. only in a very few cases where the trader is making consistent gains, the 8% position makes sens.

In other cases you just end up paying tax and forfeit carry forward of losses. So not sure how it helps.
 

canikhil

Well-Known Member
Nikhil Ji,one more doubt
Whats the difference between filing under 44AD in ITR-4 vs filling under 44AD in ITR-4s for a trader?

If there is any Refund to be claimed which form to choose if opt for presumptive 8% rule??
It is not ITR-3 and ITR 4. ITR 3 has replaced ITR-4 and ITR-4 has replaced ITR-4S

There is no difference from taxation and refund perspective. ITR-3 is filled where you need to declare incomes/information which cannot be covered in ITR-4. for example capital gains.
 

Satya.

Well-Known Member
There were few Business/Profession covering under 44AA are now also can opt for 44AD presumptive scheme.Like Fashion Designing,Interior Designing etc.
Earlier it was not allowed to declare 8%,but now those also included.Is this information correct?

If its true then technically rule 44AA do not exists now.
 

canikhil

Well-Known Member
There were few Business/Profession covering under 44AA are now also can opt for 44AD presumptive scheme.Like Fashion Designing,Interior Designing etc.
Earlier it was not allowed to declare 8%,but now those also included.Is this information correct?

If its true then technically rule 44AA do not exists now.
only a part of tax payers covered under 44AD or 44ADA are out of 44AA. once the turnover is in excess of the limits provided under these sections 44AA is applicable. Also for commission agents, brokerages etc, 44AA continues to apply in the old form.
 

cloudTrader

Well-Known Member
ideally yes there should be written documentation.

In the ITR it will show as part of your capital in the BS (in case you are maintaining accounts)
Will it need to be some kind of Legal Document or it just needs to be a signed statement from the Parents along with the transaction receipt of the Bank?

Thanks.
 

Satya.

Well-Known Member
Nikhil Sir,
I hv 1L TO,bt i'm in a loss(25k).I choose 2 declare 8% of TO which is 8k profit+some fd interest+some cash deposite.Total is very below 2.5L.
I filed under ITR4.There's a refund of TDS deducted by Bank which is 3800rs

Hope I filed right.
 
You wont have to declare 8% profit and even with a 25K loss, you would have filed your return, provided you have divulged full details. :D

Now you have to keep declaring 8% profit for next 5 years.
 

Satya.

Well-Known Member
You wont have to declare 8% profit and even with a 25K loss, you would have filed your return, provided you have divulged full details. :D

Now you have to keep declaring 8% profit for next 5 years.
dis iz vry confusing Sir
my CA says w/o dclaring 8% ITR cant b filed,else go for audit as i'm in a loss.

Sir,if in coming yrs my TO is huge,y wud I dclare 8%?
I'd go for audit as 8% dclaration will b vry costly.

hope my undrstding is correct
 
Nikhil Sir,
I hv 1L TO,bt i'm in a loss(25k).I choose 2 declare 8% of TO which is 8k profit+some fd interest+some cash deposite.Total is very below 2.5L.
I filed under ITR4.There's a refund of TDS deducted by Bank which is 3800rs

Hope I filed right.
You said

1 - you have 1L of TO
2 - 25K loss
3 - FD interest (you didnt declare)
4 - cash deposit (what sort of cash deposit, you didnt declare)
5 - Total income below 2.4L

Leave aside point 3 & 4, as your total income is less than 2.5L, even with a loss in trading you wont have to go for audit.
but as bank has deducted 3800 as TDS, you have to file return for a refund.
 
dis iz vry confusing Sir
my CA says w/o dclaring 8% ITR cant b filed,else go for audit as i'm in a loss.

Sir,if in coming yrs my TO is huge,y wud I dclare 8%?
I'd go for audit as 8% dclaration will b vry costly.

hope my undrstding is correct
dont know how your CA came to this conclusion, perhaps he himself is not aware of rules on fno trading

in coming years, its your choice to go for audit or 8% profit, for 1+5 years
but you yourself seem to be confused, on side you are talking of going for audit and on other side you are declaring 8% profit, which was not necessary to declare.
 

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