Zerodha Part 2

[a1b1trader]

see, turnover in fno = profit + loss........so if your profit is 2 lakh and loss is 4 lakh = turnover 6 lakh......now profit component is greater than 8% of turnover, so no need to get audited, below 1 crore turnover..........:d

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[shekarj]

If any one already maintaining in excel sheet he can share it with other members who are novice to excel. And what all documents are required to take or show the CA ,

 

[shekarj]

If any one already maintaining in excel sheet he can share it with other members who are novice to excel. And what all documents are required to take or show the CA ,

 

[webber]

Thanks Zerodha for the detailed blog on taxation in Zconnect
I have gone through a part of blog on this problem

The summary of the article is

For every trader of F&O

You have to maintain the books of accounts and get the accounts audited by a CA whether you are a small trader or a big trader with a turnover upto 1 Crore and having a profit of less than 8% of the turnover. (Traders having turnover of over 1 Crore have to go for compulsory audit, irrespective of profit or loss)

This will be more rigorous for the traders who have a turnover of less than 1 Crore but have incurred loss on their trades (any percentage). Now they have to maintain the books of accounts and get the accounts audited by a CA. Previously one has the option to file or not to file ITR, if one incurs a loss provided one wants to carry forward losses to future years.

So the gist is every trader whether in loss or in profit has to go for the service of a CA and to file ITR. (Only exception is turnover less than 1 crore and profit more than 8% of the turnover, for compulsory audir)

is it applicable to equity traders only?

 

[Zerodha]

Zerodha,

If any trader is in loss and he/she does not file his/her income returns then will there be any problem? Because income tax rule also says that one does not need to file return if he/she has not crossed the taxable limit.

Soft,

Once you trade f&o, it is considered as a business and no matter profits or losses you have to file your returns.

It could be a serious problem in the future, especially with IT department getting technologically advanced. Today the notices are being sent automated and defects are being spotted. IT department is also working with exchanges to get data on individual turnover and etc...

If you see both the blogs, you will know that if you decide to ignore, you can get a notice tomorrow to pay taxes considering 8% of your turnover as profits..

So advise is to not take this lightly like we all used to before

 

[Zerodha]

see, turnover in FNO = profit + loss........so if your profit is 2 lakh and loss is 4 lakh = turnover 6 lakh......now profit component is greater than 8% of turnover, so no need to get audited, below 1 crore turnover..........

MISTAKE>>>>>> Didn't read the question right...

 

[Zerodha]

is it applicable to equity traders only?

Webber,

Works same for an active equity trader also..

The only difference is that intraday trading is considered as speculative income and such losses can be set off only against speculative profits..

For example, if you make loss in f&o, you can set it off against any other business income.. But loss made of intraday trading can be set off against profit from intraday trading...

Delivery based, if you are investing once a while will come under capital gains and this will not be considered business and you don't have to worry about all of this...

 

[soft_trader]

Soft,

Once you trade f&o, it is considered as a business and no matter profits or losses you have to file your returns.

It could be a serious problem in the future, especially with IT department getting technologically advanced. Today the notices are being sent automated and defects are being spotted. IT department is also working with exchanges to get data on individual turnover and etc...

If you see both the blogs, you will know that if you decide to ignore, you can get a notice tomorrow to pay taxes considering 8% of your turnover as profits..

So advise is to not take this lightly like we all used to before

Thanks

There are many traders like me who don't know anything about filing returns, taxations, CA etc etc. Like I don't even know where to find a CA. And many CA maybe not aware of the clauses of filing a return of a stock market trader.

Zerodha can you help us filing returns properly by assigning a CA for us? I am not asking u to provide it for free, you can take fees from us for filing our returns. In this way things can become easier for us and also we will be assured that our returns filing is correct and we will not get into any nightmare in future

Please Zerodha.... think of it.

 

[a1b1trader]

see, turnover in FNO = profit + loss........so if your profit is 2 lakh and loss is 4 lakh = turnover 6 lakh......now profit component is greater than 8% of turnover, so no need to get audited, below 1 crore turnover..........

Yep correct..

I have a different view.

It is right that Total TO is, total profit + total loss.

IT authorities are concerned with net profit/loss and when you will fill ITR you will fill net profit or net loss. So in above example, it is a loss of 2 lakhs and not profit of 2 lakhs. So you accounts need to get audited.

Its my opinion and I am no tax expert.

 

[soft_trader]

Webber,

Works same for an active equity trader also..

The only difference is that intraday trading is considered as speculative income and such losses can be set off only against speculative profits..

For example, if you make loss in f&o, you can set it off against any other business income.. But loss made of intraday trading can be set off against profit from intraday trading...

Delivery based, if you are investing once a while will come under capital gains and this will not be considered business and you don't have to worry about all of this...

What does this mean? If I make loss in F&O trading intraday it can be set off against against any business income, but loss from intraday cash segment can be only set off by profit in intraday cash segment. Is it right?

And when is the last date for filing returns for FY 2012-13 ?