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

[TracerBullet]

Hello,

i am filling ITR4 for the first time. ITR4 is being used as i did some (3-4) FnO trades. I also withdrew my entire PF holdings ( tax exempted as > 5 years )

3 questions.

1) Do i need to fill Balance Sheet Schedule (No Accounts case)? I didnt understand what those 4 fields mean

2) Should the PF withdrawn amount be mentioned in Schedule EI?

3) If the total income is < 2L, audit is not required.
My income this year is < 2L. But my PF amount is more than 2L.
My FnoTrades profits have more than 8 % of turnover but i also booked loss in a long term stock which would make overall returns negative. The stock was meant as investment long before but i guess we need to consider it as part of business income due to FNO trades.
Can PF amount, which is exempted, make me liable for audit ?

thanks

2) i put PF in EI
3) i will consider Equity as part of CG this year instead of Business Income. It was meant as investment, was in seperate account from trading.

So main open issue for me is whether Balance Sheet has to be filled and what goes in it. I got an example ITR4 (from this forum) and that does not have BS filled up. Any trader can confirm pls ?

 

[nac]

I got an example ITR4 (from this forum)

Link please...

 

[TracerBullet]

Link please...

i cant find the link of traderji post. 4 shared link that it had is - here

btw, the excel kept Balance Sheet empty but i think its incorrect.
This suggests that its mandatory for business income but you only have to show Business(trading) BS. Personal BS is not to be added.

So now i m trying to understand how to relate the 4 fields in ITR4 to Zerodha ledger report. If anyone understands it, please do tell.

Edit - If anyone interested, answered here. Zerodha QnA is nice

 

[skjanghu]

Dear Experts
I am a Govt employee and having taxable income.
I have filed ITR as TaxPayable instead of TaxRefundable in year 2013 for AY 2012-13 and in year 2014 (Mar) for AY 2013-14.
And now in July correctly filed ITR for AY 2014-15 as TaxRefundable.
Can I get those last two years Income Taxrefunded by any means coz I have tried to file it again through online it said ITR can only be filed once.
Please help me
Thanks in advance

 

[TraderRavi]

As STT is levied on Equity mutual funds sale, you will be taxed@15% for STCG and 0% for LTCG

Case 1) total salary => Rs 4 lakh per year
LTCG on sale of mutual fund (Equity fund)units =>Rs 3lakh
STCG on sale of mutual fund (Equity fund)units => Rs 1lakh

Case 2) total salary less than Rs 1lakh (ie not in income tax bracket)
LTCG on sale of mutual fund (Equity fund)units => Rs 3lakh
STCG on sale of mutual fund (Equity fund)units => Rs 1lakh

Tax treatment in both cases ?

my understanding is in first case person pays tax in his salary income of 4 lakh + no tax on LTCG + 15% on STCG of 1 lakh ie rs 15000 ?

in second case even after adding STCG total income is less than taxable income , so no tax or still 15% on STCG ?

 

[sartaj]

HI sir,
I am doing my own business .after all my expenditure i can save.30k per month.i dont have IT returns.i want to invest 30k in mutual funds .is it need to pay any taxes for this amount.please tell me.my annual income is 3.6L.(net after all my expenditure).

 

[umesh12]

Hi

You are mixed up between terms, say expenditure, income and saving. Because from a business, income is what you get after deducting all sorts of business expenditure and saving is what you get after reducing the income by all sort of non business expenditure like, home expenditure, etc etc

What sort of expenditure you are counting, business expenditure or home and other expenditure or both in the said amount.

Anyway what you mentioned here, you income is taxable, and you need to pay taxes on your business income.

 

[TraderRavi]

Case 1) total salary => Rs 4 lakh per year
LTCG on sale of mutual fund (Equity fund)units =>Rs 3lakh
STCG on sale of mutual fund (Equity fund)units => Rs 1lakh

Case 2) total salary less than Rs 1lakh (ie not in income tax bracket)
LTCG on sale of mutual fund (Equity fund)units => Rs 3lakh
STCG on sale of mutual fund (Equity fund)units => Rs 1lakh

Tax treatment in both cases ?

my understanding is in first case person pays tax in his salary income of 4 lakh + no tax on LTCG + 15% on STCG of 1 lakh ie rs 15000 ?

in second case even after adding STCG total income is less than taxable income , so no tax or still 15% on STCG ?

I need this information for my sis , someone help

 

[Smart_trade]

I need this information for my sis , someone help

15% tax on STCG unless the assessee is showing share trading as his business, in which case the STCG will get added as a business income to total income and will be taxed if the total exceeds the minimum limit and at the rate applicable.

IT returns to be filed in both cases.

This is my view...I am no expert on taxation.

Smart_trade

 

[TracerBullet]

I need this information for my sis , someone help

15% tax on STCG unless the assessee is showing share trading as his business, in which case the STCG will get added as a business income to total income and will be taxed if the total exceeds the minimum limit and at the rate applicable.

IT returns to be filed in both cases.

This is my view...I am no expert on taxation.

Smart_trade

Even its not treated as business income, i think STCG can be adjusted if Total Taxable Income is less than Exemption limit. Any amount left over the limit will be taxed at 15%

Some links here , here and here

From those links
"a relief may be claimed in respect of such gain u/s 111A that if income excluding such STCG is less than Basic exemption limit , then STCG shall be reduced to the extent of difference b/w Basic exemp limit and Total inc(excluding STCG)...such remaining STCG shall be liable to tax @ 15% without any deduction under Chapter VIA.."

"If your total taxable income excluding STCG is below the threshold taxable limit, then such shortfall can be adjusted against STCG. The balance STCG will be taxed at 15% plus applicable surcharge and education cess."

Rant - Amazing that rules can be made so unnecesarily complicated. They put If-Else in hundreds of ways. What is so special about STCG that it should be 15% even if your income is more/less? Why should section VIA be not applicable to it?

Anyway, as a trader you can simplify it and treat it as business income. I think we are supposed to do that anyway as per Zerodha article.