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

[magnet]

practically such transaction would be very though for the ITO to catch...Hence if the deed has already been done then let it continue without tinkering it....

Or if you want then take the gifted money back vide an account payee cheque so that the earlier given money becomes a loan...Then give this amount as a gift to your mother in law (if you believe her ). She would gift this money to her daughter (your wife) and it becomes a clean slate for all.

DIosys sir this mean son in law gifting to her mother in law doesnt attract gift tax? or that too comes under 50k limit?

Its too much to state 12% for me. Cos 12% comes to about 25000 per month and a transaction of 25% to my father is useless. I only paying Rs: 10000 to him per month. Any other workaround to limit the payout to 10000 itself(Rs: 25L as loan itself).

TFl
Even lesser than that of 10k will do on contrary since father is a close relation i guess even interest free loans are allowed but its better to avoid by even paying 500 bucks as interest per month because i was reading a newspaper column where a person received 50 Lakhs as interest free loan from his friend genuinely and he had a tough time while scrutiny to prove why his friend paid him interest free loan...

Thank you diosys sir. My doubt seems to be over now except the below one.
You said to do these transaction via cheque, Is it ok to have it by direct bank transfers(RTGS, NEFT, etc)?

Thank you once again.

Hmm i think the point here is account entry than mode of transfer ..hence any will do but u need an accounting entry

:rofl: Accumulate Ranbaxy and Jindal Steel and Power.

Ranbaxy lolz...i have few from 284 price...i am waiting for 550 but its still hounding around 475 after reaching 500+ sometimes back,..Before DTC comes i want to exit all long term stock except rel power because its alreasy trading at 50% of its value lolz. Cant set off long term loss

 

[lvgandhi]

post deleted

 

[lvgandhi]

1.) Sec 71 (2A) and for the second part yes again....it can be done to set off against interest of NSC etc....

Capital gains mean all capital gains be it from stocks or otherwise....

Dear Diosys,
With ref to your above info, I want some clarification.
I am a retired person.
In 2008-09, I had following income breakup.
Interest in come 144798.98
Salary arrears 324900.00
Dividends 6441.90
and
loss from intraday trading 179184.93
ELSS paid Rs.100000
Based on salary areears TDs was done for Rs.20579.
My auditor didn't set of interest income against loss in trading. I had to pay another rs 9229 as tax.
As per your guidance, I had to pay Tax on salary arrears only. That to after ELSS deduction, Taxable income was Rs.224900 for which tax should have been Rs.8262. I should have applied for refund for balance TDS. Am I correct?
Howver he has shown the loss as business loss.
This FY ie 2009-10, I have income under following heads.
Interest Income 173508.46
Income from intraday rs.11244.61
salary arrears 36048.00
No TDS on arrears.
Can I set of interest income and profit from trades of this FY 2009-10 from previous years loss from trades?

 

[diosys]

can someone tell me that wt shld i do i m representing case here


1. there is business loss for year ending march 2009
2. have salary income
so i need to fill ITR 1 OR ITR 4 or ITR 2

and is it necessary to file business loss (i.e. to fill ITR 1 & not disclose the business loss )as i m not going to get set off of losses as i have not filed return on 31-7-2009

and wt is the last date to file return of year ending 31march 2009
i know 31 july 2009 is already gone

option 1. 31 march 2009
option 2. 31 march 2010

plz help

File ITR-4...and yes you should declare the loss even if not allowed to carry forward..

Secondly you can file upto 31/03/2011 also but then you can be liable for 5000 penalty....if you file till 31/03/2010 then no penalty would be levied on you.

 

[diosys]

DIosys sir this mean son in law gifting to her mother in law doesnt attract gift tax? or that too comes under 50k limit?


TFl
Even lesser than that of 10k will do on contrary since father is a close relation i guess even interest free loans are allowed but its better to avoid by even paying 500 bucks as interest per month because i was reading a newspaper column where a person received 50 Lakhs as interest free loan from his friend genuinely and he had a tough time while scrutiny to prove why his friend paid him interest free loan...


Hmm i think the point here is account entry than mode of transfer ..hence any will do but u need an accounting entry




Ranbaxy lolz...i have few from 284 price...i am waiting for 550 but its still hounding around 475 after reaching 500+ sometimes back,..Before DTC comes i want to exit all long term stock except rel power because its alreasy trading at 50% of its value lolz. Cant set off long term loss

Gifting to mother in law falls within the definition of relative hence not taxable at all.

 

[diosys]

Dear Diosys,
With ref to your above info, I want some clarification.
I am a retired person.
In 2008-09, I had following income breakup.
Interest in come 144798.98
Salary arrears 324900.00
Dividends 6441.90
and
loss from intraday trading 179184.93
ELSS paid Rs.100000
Based on salary areears TDs was done for Rs.20579.
My auditor didn't set of interest income against loss in trading. I had to pay another rs 9229 as tax.
As per your guidance, I had to pay Tax on salary arrears only. That to after ELSS deduction, Taxable income was Rs.224900 for which tax should have been Rs.8262. I should have applied for refund for balance TDS. Am I correct?
Howver he has shown the loss as business loss.
This FY ie 2009-10, I have income under following heads.
Interest Income 173508.46
Income from intraday rs.11244.61
salary arrears 36048.00
No TDS on arrears.
Can I set of interest income and profit from trades of this FY 2009-10 from previous years loss from trades?

If the above loss of intraday trading is speculative then set off is not allowed....my reply which you have quoted was with reference to Futures loss which is treated as normal business income and loss and not as speculative....

 

[nac]

Hi! Diosys,

You said cash book is different from journal.

You have asked to maintain books of accounts. I am taking your advice and gonna maintain books of accounts. As you have said cash book and ledger need to be maintained if we fall in mandatory to maintain books of accounts.
Can I maintain journal instead of cash book? (I feel, journal is easier than cash book)

Since I am in the initial stage, I can't afford to employ some one to maintain my books. So I am gonna make it on my own with TALLY(Educational version). I guess, this is enough, I mean the TALLY version.

I have studied some accounts in school days. I am brushing up those things. BTW I am learning TALLY.
I am bit embarrassed to ask you this, but still...
You have given sample journal entry like this.
Broker a/c dr (is it broker a/c or brokerage a/c???)
Other charges(stt, stamp etc) a/c dr
To profit a/c cr

Can you please gimme a sample entry for in case of loss? Because I am confused with where to make entry for other charges. When I am making profit, I am debiting them. I guess even when I am in loss I should keep it in the debit side.
My guess is right?

 

[lvgandhi]

If the above loss of intraday trading is speculative then set off is not allowed....my reply which you have quoted was with reference to Futures loss which is treated as normal business income and loss and not as speculative....

Am I correct in my understanding income/loss from futures trade whether intraday or carried over for a few days is normal business income and intraday trading in stocks is speculative income.

 

[diosys]

Hi! Diosys,

You said cash book is different from journal.

You have asked to maintain books of accounts. I am taking your advice and gonna maintain books of accounts. As you have said cash book and ledger need to be maintained if we fall in mandatory to maintain books of accounts.
Can I maintain journal instead of cash book? (I feel, journal is easier than cash book)

Since I am in the initial stage, I can't afford to employ some one to maintain my books. So I am gonna make it on my own with TALLY(Educational version). I guess, this is enough, I mean the TALLY version.

I have studied some accounts in school days. I am brushing up those things. BTW I am learning TALLY.
I am bit embarrassed to ask you this, but still...
You have given sample journal entry like this.
Broker a/c dr (is it broker a/c or brokerage a/c???)
Other charges(stt, stamp etc) a/c dr
To profit a/c cr

Can you please gimme a sample entry for in case of loss? Because I am confused with where to make entry for other charges. When I am making profit, I am debiting them. I guess even when I am in loss I should keep it in the debit side.
My guess is right?

seperate means seprate...you would need to maintain cash and journal...no concession given !!!

Take my advice hire an accountant for 5000 or so and give him all the headache...i bet you would not be able to do it....

 

[diosys]

Am I correct in my understanding income/loss from futures trade whether intraday or carried over for a few days is normal business income and intraday trading in stocks is speculative income.

yes your understanding is absolutely correct.