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

Are you able to understand the replies and act accordingly to this thread ??

  • Yes, able to understand BUT NOT able to take suggested course

    Votes: 0 0.0%
  • Somewhat able to take desicions, BUT seek professional help in my area

    Votes: 0 0.0%
  • Find it tough to understand the replies hence always seek other professional help

    Votes: 0 0.0%
  • Not able to understand any of the replies !!!

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  • Total voters
    4
  • Poll closed .

TracerBullet

Well-Known Member
Noted.
I assume you are an accredited auditor who can sign the ITR-3 tax audit balance sheet & P&L account & file Itr3 with "trading as a business" (intraday stocks,STCG stocks & commodity & currency fututre trades& very few equity index & equity option trades) but just break even (less than 6% proft threshold)
so Filing ITR3 with tax audit atleast can recover some STT/IGST on intraday trades +small expenses to run the so called business & can afford to pay you.
will contact you soon.
Correct me if wrong but i dont think STT is expense that can be 'recovered', there is no rebate.
Would be great if i am wrong. Its a major expense that we have to pay even before making profits.
 
can you message the details. would need a item specific tax calculation here. as such for the incomes already accrued in the name of deceased person, the taxability will have to be discharged by the legal heir (generally only one person, even if there are more people legally considered as heirs).
Thanks for the reply sir...
A few things have been clarified by Romeo sir and a few on whatsapp...
There are a few items in income... a few below are clear and a few are still in grey area particularly point no 4 and 6
1. Pension paid while alive
2. 2-3 months pension paid after expiry due to admin delay even though it was informed to the concerned bank
3. Arrears paid after expiry
4. The above point 2 and 3 pension and arrears taken back by and paid again a few weeks later to the heir/dependent.
5. Bulk sum as death benefits from insurance scheme to the heir
6. Bulk sum as annuity benefit from a hybrid annuity-insurance instrument (some say hybrid instruments are not insurance and hence taxable as per slab rate, some say it is and hence non taxable)
7. Income from other sources like debt instruments and also (probably) some gains from equity (not sure about LT or ST as yet)

As far as legal heir registration is concerned that section is missing from the new website interface... I am have raised this issue but I don't expect any reply from them...
Also ITR filing date has been extended for deceased, but is the tax payment date also extended? In Mint it said to the contrary and any liable tax will incur a penalty and interest beyond the regular date...

Any clarity on these issues will be greatly appreciated Nikhil sir... Thanks...
 

canikhil

Well-Known Member
Thanks for the reply sir...
A few things have been clarified by Romeo sir and a few on whatsapp...
There are a few items in income... a few below are clear and a few are still in grey area particularly point no 4 and 6
1. Pension paid while alive
2. 2-3 months pension paid after expiry due to admin delay even though it was informed to the concerned bank
3. Arrears paid after expiry
4. The above point 2 and 3 pension and arrears taken back by and paid again a few weeks later to the heir/dependent.
5. Bulk sum as death benefits from insurance scheme to the heir
6. Bulk sum as annuity benefit from a hybrid annuity-insurance instrument (some say hybrid instruments are not insurance and hence taxable as per slab rate, some say it is and hence non taxable)
7. Income from other sources like debt instruments and also (probably) some gains from equity (not sure about LT or ST as yet)

As far as legal heir registration is concerned that section is missing from the new website interface... I am have raised this issue but I don't expect any reply from them...
Also ITR filing date has been extended for deceased, but is the tax payment date also extended? In Mint it said to the contrary and any liable tax will incur a penalty and interest beyond the regular date...

Any clarity on these issues will be greatly appreciated Nikhil sir... Thanks...
I will reply in sometime on each of the issues raised above.

With regards to the issue of not having the option on the new website, everyone is in the same boat. Too many people have passed away due to COVID - most of them without a will. So even a legal heir finalisation itself is an issue.
 
I will reply in sometime on each of the issues raised above.

With regards to the issue of not having the option on the new website, everyone is in the same boat. Too many people have passed away due to COVID - most of them without a will. So even a legal heir finalisation itself is an issue.
For tax filing purposes, you don't need a will to claim legal heir to file return on behalf of the deceased. A bank statement that the wife/son/etc have a joint FD account is sufficient.
 

TracerBullet

Well-Known Member
for intraday and derivatives, you will claim STT as an expense.
Yes, i dont have to pay additional income tax on STT value for business income but cannot save on STT itself.
So i guess even for short term multi day holdings in stocks if declaring it as business income ( which is what Zerodha recommends as STCG is only for infrequent transactions as per IT ).

Only for CG, STT cannot deducted as expense due to special rates.
 
For tax filing purposes, you don't need a will to claim legal heir to file return on behalf of the deceased. A bank statement that the wife/son/etc have a joint FD account is sufficient.
Thank you sir. Take your time to reply, no hurry. Just one clarification in the above - does that mean one can login from the IT account of the deceased person and file ITR normally like last years?
 

canikhil

Well-Known Member
Yes, i dont have to pay additional income tax on STT value for business income but cannot save on STT itself.
So i guess even for short term multi day holdings in stocks if declaring it as business income ( which is what Zerodha recommends as STCG is only for infrequent transactions as per IT ).

Only for CG, STT cannot deducted as expense due to special rates.
only if you are holding stocks as part of "inventory" else, won't claim STT for non-speculative trades.
 
Thank you sir. Take your time to reply, no hurry. Just one clarification in the above - does that mean one can login from the IT account of the deceased person and file ITR normally like last years?
I am not sure if you can directly file from the login ID of the deceased though that seems more convenient. I am sharing what I did a couple of years back.
You fill an online form and upload the relevant documents. After the documents are approved you will have 2 options when you log in.
1. File for self
2. File as legal heir.
You can now file both returns separately using your login ID.
https://taxguru.in/income-tax/file-income-tax-return-deceased-person.html
 
Last edited:
I am not sure if you can directly file from the login ID of the deceased though that seems more convenient. I am sharing what I did a couple of years back.
You fill an online form and upload the relevant documents. After the documents are approved you will have 2 options when you log in.
1. File for self
2. File as legal heir.
You can now file both returns separately using your login ID.
https://taxguru.in/income-tax/file-income-tax-return-deceased-person.html
That link is only absent CB sir... link to register as legal heir and upload relevant documents...
 

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