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

[IKAR]

I have posted this before. It is somewhere deep inside and missed attention I guess. Please see if you can help.

I have a savings interest credit of Rs. 154 in a minor's account. Will it go with total interest and be shown under 80TTA? Or will it be shown in the Exempted Income sheet in the end of ITR2?

Adult's interest - 2000 Minor - 254.

Will the adult show total interest as 2254 under 80TTA and 2254 under gross interest in Schedule OS?

Or will it be in exempt income for specified person in Schedule EI?

Thank you

 

[canikhil]

s

One more small doubt, Fo



Query 2:
One more small doubt, with the above case of turnover,income and losses what if I dont want to carry forward the losses. do i need to show 6% of tunover as income and add with rest of the incomes and pay according to my tax slab? or No need to show 6% of turnover as income and no need to pay any taxes since in this case loss 6lk and FD interest K and rent income 80k so that total income is -6l+50k+80k=-4,70,000 which is less than minimum tax slab ie 2.5l
Please help

I might not use your data for explaining the problem but the text below should help you:

1. Lets say the turnover is below 2 cr, there is no salary income and there is a loss and you want to carry it forward.

Now what you do here - 1. Audit is not applicable as as the income is below exempted limit but how do you claim the loss? (this problem arises on account of bad drafting of law.

In this case, if the turnover is below 1 cr, you don't face much problem. You file ITR-3, say yes to whether you need to maintain accounts, say no to audit and claim and carry forward the losses.

But what happens when the turnover is above 1 cr, then the above option doesn't work as 44AB audit limit is Rs 1 cr. So in these cases, on account of bad drafting of law, you would be required to get the audit done if you want to carry forward the losses.

2. What if you don't want to carry forward the losses at all.

If the turnover is below 1 cr, then not filing the return could be a solution. In case you receive a notice, you just state that since the income is below exempted limit, you didn't file the return.

But what happens when the turnover is above 1 cr, then situation is not as clear.

While filing the return is still not mandatory, but the department may claim that filing the audit report was mandatory since you didn't claim 44AD and your turnover is above 44AB audit limit.

I hope the above helps.

 

[kcsusha]

Thanks IKAR Saab.

 

[jignesh4]

I have posted this before. It is somewhere deep inside and missed attention I guess. Please see if you can help.

I have a savings interest credit of Rs. 154 in a minor's account. Will it go with total interest and be shown under 80TTA? Or will it be shown in the Exempted Income sheet in the end of ITR2?

Adult's interest - 2000 Minor - 254.

Will the adult show total interest as 2254 under 80TTA and 2254 under gross interest in Schedule OS?

Or will it be in exempt income for specified person in Schedule EI?

Thank you

As income for minor child is less than Rs 1500, you can show in schedule EI. Anything more than Rs 1500 per child, will be treated as parent's income and it will be clubbed.

As 80TTA limit is Rs. 10,000, your interest of Rs 2000 is also exempted.

 

[jignesh4]

Hi,

Please help me in filling the short term capital gains in ITR 2. I have a gain of Rs. 5000.

However I am facing a problem in filling it in Schedule F(1) at the bottom of the sheet CG where the datewise breakup has to match the total short term gains.

In the last time period between 15/Mar to 31/Mar I have a loss of Rs. 300. However the cell does not let me put any negative number. So how will I balance the total?

1700 + 1300 + 800 + 1500 - 300

This break up is used by IT department to compute advance tax liability.

In your case, you can put 0 instead of -300. Now another rule is total should match. So you can reduce prior quarter amount by 300. So, here it will be 1700 + 1300 + 800 + 1200 + 0

Hope this clarifies.

 

[jignesh4]

I am filing ITR3 ,, Even though my profits are say 4% i am showing 6 %. Guess govt gets free money from me

I am almost done with ITR3 filing. I will post the screenshots of relevant section for F&O traders.

This might help all other ITR3 filers.

If I have done any mistake please inform me . I intend to file the returns this week.

In General section I have selected every question for audit as No.
View attachment 26660

Balance sheet :

I am still confused over sundry debtors and creditors ,, Can someone please confirm if we traders can make it as zero
I took the cash balance of ledger as on 31st March 2018

View attachment 26661

P/L Section

Should we maintain the full PL statement or only section 53 is enough ?

View attachment 26662

Gross Receipts = Turnover
Expenses = brokerage,STT etc
Net profit : Make sure its more than 6% of turnover.

Never lie on turnover , I have seen many threads in traderji where people have filed fake turnover to reduce the profits and have got notice. Pay extra or pay a CA for audit


PLEASE Note that I am not filing returns today itself. I will cross check everything and file it on weekend. Dont just rely on me,, Please seniors, tax experts correct me if I am wrong. This is the first time I am filing ITR3

Looks perfect if you have not done any intraday trading. Intraday comes under speculative gain so need to do something additional.

 

[jignesh4]

Can anyone guide as a very low volume trader without salary and no taxable income should file ITR 3 or ITR 4??
confused??

If you did delivery trade, you need to report under Capital Gain. ITR 4 has no provision for showing CG, so need to file ITR 3. For only F&O trades, ITR 4 is fine.

 

[john302928]

s


I might not use your data for explaining the problem but the text below should help you:

1. Lets say the turnover is below 2 cr, there is no salary income and there is a loss and you want to carry it forward.

Now what you do here - 1. Audit is not applicable as as the income is below exempted limit but how do you claim the loss? (this problem arises on account of bad drafting of law.

In this case, if the turnover is below 1 cr, you don't face much problem. You file ITR-3, say yes to whether you need to maintain accounts, say no to audit and claim and carry forward the losses.

But what happens when the turnover is above 1 cr, then the above option doesn't work as 44AB audit limit is Rs 1 cr. So in these cases, on account of bad drafting of law, you would be required to get the audit done if you want to carry forward the losses.

2. What if you don't want to carry forward the losses at all.

If the turnover is below 1 cr, then not filing the return could be a solution. In case you receive a notice, you just state that since the income is below exempted limit, you didn't file the return.

But what happens when the turnover is above 1 cr, then situation is not as clear.

While filing the return is still not mandatory, but the department may claim that filing the audit report was mandatory since you didn't claim 44AD and your turnover is above 44AB audit limit.

I hope the above helps.

In case 2 of (turnover <1 cr)not carry fowarding loss, instead of not filing the returns, can we file the return and show tax NIL and in the Capital and balance sheet statement we can reduce this loss. right?

 

[kcsusha]

Sec 44-AB or AD whatever, it states that Tax audit is not required if Turnover is less than 1 crore ( upto FY 2016-17 )
and less than 2 crores now. The same section states that tax audit is required if turnover is less than 2 crores,but
total income ( salary, other incomes etc ) exceeds min tax exemption limit of 2.5 lakhs. What if turnover in
share market exceeds Rs 2 crores, profit less than 6%, but all incomes put together is less than Rs 2.5 lakhs?

 

[kcsusha]

Provided total income is less than Rs 2.5 lakhs no audit required if turnover is less than Rs 2 crores. This
sentence may be added to above first sentence.