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

[Madhunayak]

Dear Sri....

Tax audit is to be done when one's turnover is above 40 Lacs...For those in other industry it is the basic sale achieved....But in the case of transactions of F&O there is a difference...

For the purpose of F&O transactions the limit of 40 Lacs is the profit or loss in absolute terms...Let me explain with an example....

Suppose you bought one lot of 150 shares of Financial Technology at Rs. 3000...Then you sold it at 3100....Therefore your profit is 100*150=15000...

Now you bought one lot of 1400 shares of HCC at 100 and then sold it for 110...so your profit if 10*1400=15000...

Third, you bought one lot of 8000 shares of IFCI at 60 and then sold it for 50...so you incur a loss of Rs. 10*8000=80000...

therefore for the purpose of determining the total turnover you achieved would be 15000(FTIL profit) + 14000(HCC profit) + 80000(IFCI loss) = 1,19,000....

it would not be the total transaction values but the absolute profit or loss incurred in the transactions...

I hope it is now clear .....

Does this rule apply to intraday trade in cash market also????.

 

[[email protected]]

I am working in Oracle India Pvt Ltd Bangalore.I declared my investment on last date as required by the company and also declared house rent so that to get tax rebate on HRA.Now i am having one housing loan in Delhi but it just got sanctioned now,so as i have not invested anything else.Is it possible to get it declare now and get tax return.One of my friend told me that i can not declare both house rent as well as housing loan investment.So is it possible to get cancel house rent declaration and show up housing loan as investment.Can anyone tell me the whole process to follow.

 

[age_of_turbulence]

I started a separate thread for this, when the appropriate place would have been this thread.
Appreciate any help:


I'm an old hand at trading, but looking to change the way I do my taxes. Briefly, my accountant doesn't inspire confidence on how to deal with these transactions, so I'm looking to do them myself, using tally.

I found a very, very useful thread on Traderji - highly recommend it to anyone in my position http://www.traderji.com/taxation-mat...se-issues.html

I've followed the advice on there and got a skeleton structure going, but I have two questions for anyone more familiar on taxing matters.

One - how's STT really meant to be treated? My understanding is that it was once a form of advance taxation, but there's no tax benefits that accrue to STT any more. Would that mean that under the current tax code, STT is simply expensed like anything else? Or am I missing something?

Two - using the Mark-to-Market Futures Trading A/c, I arrive at my annual profit. The rule for an audit is the net total of the absolute value of your overall Mark-to-market. Now, does this value need to show up anywhere on the P&L? If so, what entries should I follow?

I'd really appreciate an answer to these if anyone knows. Or if you treat your account differently - chip in with how you treat your Futures & Options transactions.

Cheers.

 

[Pankshri]

Hi,

I trade only in Futures with my own funds. Now I am planning to invest my friends & relatives money too in Futures and give them a yearly return of 15% and whatever i earn over 15% would be my profit. Would like to know whether it is legal to trade others money on my trading a/c and what would be the tax liabilities for the same???

Thanks in advance.

Pankaj

 

[crimsonAlchemist]

Hi,

I wanted to know what category does profits from online forex trading come under? Can they be considered as business income or have to be filed as capital gains?

Also what sort of proof needs to be given for showing source of income? I am planning to use the same online payment processor which I use for my freelance project client payments. Will it be ok if I show bank statements of my withdrawals from the payment processor or are digital contract notes needed from the forex broker side(afaik online forex trading portals don't provide this) for all profit arising from forex trading? I was considering clubbing all withdrawals from the payment processor under my freelance programming income to avoid complicated calculations as well as legal issues. Is this legally possible?

Currently I am trading under a demo account from iForex and doing very well in that. I will most probably switch to a different broker for live trading though since I have heard bad things about iForex.. & deposit funds from Indonesia to avoid the RBI regulations. But I am apprehensive about moving forward with this till the tax issue is cleared up.
Please help T_T

 

[jamit_05]

Hello,

A very straight forward query... How do I best "present" profits from Futures and Options trading for taxation purpose.

1) Do I get expense off (like, internet, computer, electricity)
2) Do I get tax rebate on STT or service taxes that i pay in my brokerage bill


Thank you.

 

[Pankshri]

Hi,

I trade only in Futures with my own funds. Now I am planning to invest my friends & relatives money too in Futures and give them a yearly return of 15% and whatever i earn over 15% would be my profit. Would like to know whether it is legal to trade others money on my trading a/c and what would be the tax liabilities for the same???

Thanks in advance.

 

[kalllu]

Hello,

I bought an 2 year FMP (growth option) in Dec 2011. It matures in Dec 2013.

Since I have chosen growth option, no dividends will be declared by the AMC.

Like FDs, do I have to report the accrued interest in this FMP in my yearly tax return or would I handle the total interest after the FMP matures?

Thanks again.

 

[varlax]

Sir,

This is regarding the taxation of intraday shares. Last year around March 29th, i had shorted shares that eventually hit circuit on that day. As a result the shares were later auctioned in the first week of April. Now my question is regarding the losses incurred for this stock for taxation purpose. How do i calculate the net loss(including the expenses calculation).

Please guide me as this is something that has not been covered i the contract notes that is normally provided by the broker in every other normal intraday trade.

 

[dabster]

is it possible to submit the medical bills claims along with IT returns in some way. I had missed to submit some medicsl bill to the employer and they happenned in feb-mar duration. emplyers take only till january.