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

[diosys]

Diosys sir,

Do I need to take separate letter or just need a letter at the end of F. year stating all the dates of money transfer and state it as gift as a whole?

Hari.

Hari, it would be ideal that with every transfer a separate letter be taken....

 

[diosys]

Dear Diosys,

Thanks for your reply.Just a small clarification required:
Gifts by cheque to daughter and son in law are not taxable?

Thanks
Indu

No, they are not taxable....but in certain cases any income which arises from the gifts would be taxable in the donor's hand....

 

[diosys]

Hello Diosys,
I have been reading this thread most of the day today,it is very informative,i am very thankfull for your efforts and also by many of the senior members in this community.

I have many questions which you and many members here can clear it. I am a Professional Trader for timebeing to earn some capital and i want to turn into Professional Trader as well as Investor. Here, should i Trade on individual basis or shall i registar as an Investment Compay ( Like RARE ENTERPRISES by renowned Trader and Investor Rakesh jhunjhunwala which he and his wife is the only clients). My few questions are..

1) What will be the registration fee to register my PT&I Investments. (Professional Trader & Investor Investments.)

2) Which will benifit me more either individual or through my Investment company(if at all) considering all factor like tax,income,revenue etc.

3) what will be the tax slabs for a Investment company which comes under business income.

I will be very thankfull to you and i will be waiting for your and everyones reply.

Thank You.

Dear,

First would answer your 2nd question...Better to start as an individual and later float a company (because of compliance and tax point of view)...

There is no set up fee for a individual...open a demat and start trading....

For an investment company the flat rate of tax is 30% at present....

 

[diosys]

dear diosys,

I have the following doubts. please clarify in your free time.

Under what head the following profit/loss falls.

1. Intra day trades in equity(cash) segment - speculative income?

2. Positional trades in equity if held for less than one year. - short term Capital gains?

3. Positional trades in equity if held for more than one year. - long term Capital gains?

4. Intra day trades in F&O segment - business income?

5. Positional trades in F&O segment - business income?

6. Intra day trades in commodities - business income?

7. Positional trades in commodities - business income?


Thanking you in anticipation.

prasad.

1.) Speculative Income
2.) Short term provided they are not very very short term (like for a day) otherwise it would go in business income.
3.) Generally long term
4.) Business income
5.) Business Income
6.) Business Income
7.) Business Income

 

[diosys]

Greetings Sir,
I wan to know what is the tax rate for trading Index Options. And is it a Speculative Income ?
Thank you very much Sir .

Regards from Erode, TN
Arun.

No Arun, it is not speculative income but it is a business income (not a capital gain).

 

[diosys]

hi sir

is intra day trading income considered as business or speculative income. whts the tax rate in either case. is there any tax slab in either case or flat rate irrespective of income amt. also wht deductions can be claimed for saving tax in either case.

regards

Intraday Cash - Speculative Business Income
Intraday Futures - NON Speculative Business income

tax slabs for individuals i have already described in previous few pages...Please travel through the thread to gain insight.

 

[MARKETBHAVISHYA]

sir.if im a trader in both cash and F&O.how should i assess my taxable gains?because of this confusion i havent even filed my papers.

 

[diosys]

sir.if im a trader in both cash and F&O.how should i assess my taxable gains?because of this confusion i havent even filed my papers.

Dear,

I have already explained it numerous times.....Please read few of the previous posts and you would understand....If not then write again....

 

[prasadam]

1.) Speculative Income
2.) Short term provided they are not very very short term (like for a day) otherwise it would go in business income.
3.) Generally long term
4.) Business income
5.) Business Income
6.) Business Income
7.) Business Income

Thank you Diosys.

another question.

As I am doing F&O and also commodities trading in my individual name only, whether I have to club the turnover( gross profits + Gross Losses) of both the businesses for tax audit purposes? or 40 lakhs each for both businesses?
for eg. my turnover in F&O is 35 lakhs and in commodities it is 6 lakhs. do I have to get my accounts audited?

thanking you in advance.

Prasad.

 

[diosys]

Thank you Diosys.

another question.

As I am doing F&O and also commodities trading in my individual name only, whether I have to club the turnover( gross profits + Gross Losses) of both the businesses for tax audit purposes? or 40 lakhs each for both businesses?
for eg. my turnover in F&O is 35 lakhs and in commodities it is 6 lakhs. do I have to get my accounts audited?

thanking you in advance.

Prasad.

Yes, the turnover of the individual is to be seen not of the separate business...it would be 41 lacs and audit required.