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

Vikram, use ITR-2

Ok, I have filled ITR-2, everything is completed related to my salary etc.

Now only I have to put short term capital gains in SPI-SI worksheet?

like below ?

1A 10 18440 1840

only 1 entry for my short term capital gains.

and fill the same amount in "CG-OS" ? in A.-> 3. as below ?

Amount deemed to be short term capital gains under sections 54/54B/54D/54EC/54ED/54F 3

18440

is this right?

or do we have to enter each transaction details related to short term capital gains? i mean each and every transaction buy-sell ?

Only one comprehensive entry would suffice.....

Dear Diosys,

Are the entries mentioned above are ok? as I am first time filing ITR-2 form.

Hi,
I am working in an MNC in India but have been deported to one of the Europian Country [NORWAY].
As I have been deported to Norway, I continue to get the salary in India along with allowances in NORWAY.
I pay my tax on salary in India. But is there any tax liability on allowances I get in Foreign country?
I am getting this allowance to take care of my travel and food expenses.
Do I have to pay any taxes in India on the amount saved in foreign country?
I come under 30% Tax bracket.
Also, If I send this saved money to India, do I need to pay tax on this? Or is it better to have an NRI account with some bank?

Thanks for the help in advance.

Dear Extertiminate....

Please answer one question before i can answer you....

Are you a resident Indian meaning have you stayed in India greater than 182 days in the previous year.....Everything would depend upon this....

correct...........

Dear Diosys,
My tax consultant i unable to find relevant sections regarding turnover in derivatives(Futures trading). Can you please give reference of concerned sections of the Income tax act.

There is no reference of it in the Income Tax Act...

As per the guidance note on tax audit, under Section 44AB of the Income-Tax Act, 1961, of the Institute of Chartered Accountants of India (ICAI), a speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise then by actual delivery or transfer of the commodity or scrips. In speculative transactions, the contract for sale or purchase entered into is not completed by giving or receiving delivery so as to result in the sale as per the value of the contract note. The contract is settled otherwise: squaring up by paying out the difference, which may be positive or negative. In such a transaction, such difference is turnover. It can be positive or negative arising from settlement of various contracts during the year. Each transaction resulting into a positive or negative difference is an independent transaction.

You may also refer to the guidance note issued by the ICAI for accounting of F&O. You may also refer to the decision of the tribunal in the cases of Royal Cushion Vinyl Products Ltd [IT Appeal No. 7859 (Bom) of 1992 dated 8 January 1993], Babulal Enterprises 31 BCAJ 788 (Bom), Saumil J Trivedi 34 BCAJ 280 (Bom), and Growmore Exports Ltd 78 ITD 95 (Bom), where it has been held that for speculative transactions, the gross sale value cannot be considered to be the turnover in the absence of delivery.

Althogh not treated as speculative, F&O transactions are completed without delivery of shares or securities. These are also squared up by payment of differences. Contract notes are issued for full value of the asset purchased or sold. But entries in the books of accounts are made only of the difference. Transactions may be squared up any time on or before the striking date. The buyer of the option pays the premia. The turnover in these transactions is to be determined as follows:

* The total of favourable and unfavourable difference is to be taken as turnover.

* Premium received on sale of options is to be included in turnover.

* If any reverse trades are entered, the difference, should also form part of turnover.