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

[hometypist]

Let me thank you for replying to my queries concerning tax matters earlier. I have a query though it is not concerning stocks but it relates to cash.

The company that I am working does not have a bank account where our branch is located and is now planning to issue bearer cheques in my name, for which I might be required to show my identity proof at the time of withdrawal. Though this money will be used for the purpose of petty cash for company expenses, Normally an expense of Rs.240,000/- is there every month, please let me know the following:

1. What are the tax implications if Income Tax knows about this bearer cheque in my name.
2. Should I take a letter from the Company stating that the bearer cheque though issued in my name is meant for company petty cash use.
3. Is it legal.

Please suggest and thanks in advance.
Regards,

 

[anurag_nagpal]

Hi diosys

My equity/share trading sales turnover (not profit) is above 40 lakhs. Overall short term profit from stock trading is 80000, profit from day trading is around 7000 and derivatives loss is 4000. is my account subject to tax audit?? I am having business of mfg.

Well, what is criteria for tax audit for stock trading? my maximum transaction comprises of short term gain.

regards

anurag

 

[hometypist]

Hi Diosys,

My wife is having a share trading account. At present, my wife's profit from trading is more than 145000 from the stock. Please let me know:

1. What is the income tax limit for women.
2. Does she have to pay Short Term Capital Gain Tax and what is the rules regarding it.
3. My wife is not working and the profit from stock is the only income she has.
4. If my wife invests in ELSS, Insurance for our kids, etc, can we avail any tax benefits.

I request tax experts to please advise me.

Regards,
Benson

 

[yoogi]

Dear hometypist,

I want to be doubly sure that you meant "Booked profit" right?

Trading and investing are diffrent and treated diffrently in Taxes. There is no clear line that seperates the two. But usually buying-selling frequency, the time of holding (2-3 days vs 3-9 months...) are used to judge whether she invests or trade.

Trading profit is treated like a business profit, or Income from Business or profession.

http://finance.indiamart.com/taxation/income_tax/rates.html

So up to 1.45 L, no tax is payable for women. But you better file tax anyway so that in future IT dept knows she already earned 1.45L from trading and she is already wealthy.

You can book losses if any in some stocks (so that trading gains come down, you can carry profits to an year or more so that there is no tax (long term capital gain tax is 0% ).



Short term Capital Gains are taxed at 10%. I am not sure whether they have the same deduction and rebate. Only diosys or some other pro can tell.

 

[hometypist]

Dear hometypist,

I want to be doubly sure that you meant "Booked profit" right?

Trading and investing are diffrent and treated diffrently in Taxes. There is no clear line that seperates the two. But usually buying-selling frequency, the time of holding (2-3 days vs 3-9 months...) are used to judge whether she invests or trade.

Trading profit is treated like a business profit, or Income from Business or profession.

http://finance.indiamart.com/taxation/income_tax/rates.html

So up to 1.45 L, no tax is payable for women. But you better file tax anyway so that in future IT dept knows she already earned 1.45L from trading and she is already wealthy.

You can book losses if any in some stocks (so that trading gains come down, you can carry profits to an year or more so that there is no tax (long term capital gain tax is 0% ).



Short term Capital Gains are taxed at 10%. I am not sure whether they have the same deduction and rebate. Only diosys or some other pro can tell.

Hi Yoogi,

Thanks for your inputs. That is the profit from trading i mentioned, my wife purchased it 2 months back and sold it one week back.

 

[giribabu2006]

Is anyone having a tool /xls to calculate short/long term gains of stocks

Regards
Giri

 

[sam1233]

Where Is Diosys???? Where Is Diosys????


He Is Not Answering Any Questions....

 

[diosys]

Where Is Diosys???? Where Is Diosys????


He Is Not Answering Any Questions....

Dont worry SAM, i am back......

 

[diosys]

Dear Diosys, Could you once again check and confirm this. What my Chartered Accountant told me was that this clause has been amended by the IT dept. and now in case you sell your original shares soon after you get the bonus shares, the loss booked by you will be treated as the acquisition price of your bonus share. Please can you check and confirm this once again. Thanks

Dear Su,

As per my limited knowledge the said section is still very much there and read as follows

(iiia) In relation to the financial asset allotted to the assessee without any payment and on the basis of holding of any other financial asset, shall be taken to be nil in the case of such assessee;

Please ask your Chartered Accountant to give the details of the amendment made as if there is such an amendment then the same can have deep implications....

Please ask him to provide the amendment and revert back to me so that if i am wrong then atleast i can rectify my knowledge....

 

[diosys]

Will I be taxed for the 'intraday trades'(speculative income-30%) if I am making profit below 1.2 lakh limit in a year?

Can I set off my losses against my profits?

Dear Kuriako....

Your intraday regular trading might take you to be taxed in business income head.....There is no limit which would determine whether you fall in business income or in Capital gain....Just the intention has to be there....

Moresover the losses of Intraday cannot be set off against profits of delivery based buying or selling......BUT vice versa is allowable.