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

[abb24]

dont think an audit is applicable in your case. just filing ITR-3 without audit should be sufficient.

clap clap. Many thanks for your valued opinion. I shall go through your past posts regarding turnover calculation and audit application .
Once again Thank you Sir for providing relief.
I take this opportunity to Thank TNB bro for drawing your attention.

 

[Raj232]

not sure if your broker has got it right for Banknifty. You need to consistently calculate the turnover but be advised the options turnover has to be computed properly ie sell side premium plus the absolute difference between sell and buy.

"the options turnover has to be computed properly ie sell side premium plus the absolute difference between sell and buy."
@canikhil : Can you please quote the rule/law where the "plus" is mentioned or link to that ?

 

[canikhil]

"the options turnover has to be computed properly ie sell side premium plus the absolute difference between sell and buy."
@canikhil : Can you please quote the rule/law where the "plus" is mentioned or link to that ?

Please refer to ICAI guidance note on Tax Audits

 

[canikhil]

but I am still confused for rational behind adding sale value (premium received, as they say it) of an option, when option are first bought.. I am sure that whoever has/have drafted the rules for option TO, is not aware of, the various ways, these option are traded in stock market
OR
if they knew it, then they, all the taxation people, treated traders as a fool, who (a trader) had no say in it.

In general business TO is the sale price of a trade, and
in future trading, absolute difference between sell and buy, is the TO
but the fun is
for options, it is the sum of both.
why so, they have no answer
ridiculous

I am completely agree with you. But then "ridiculous" has very much been part of Indian legal system

 

[Raj232]

Please refer to ICAI guidance note on Tax Audits

@canikhil : You have asked me to refer to the ICAI guidance note on Tax Audits and I have..
I have also posted the links in my earlier posts


Can you post a link where the word "plus" is used .. other than lay people's comments ?

 

[raj98]

Need help for my query !

My wife has a trading account and does mostly intraday F&O . She is a homemaker. As She does not earns income (income from trading activity only) , initial investment amount is given by me only. I understand that as initial investment amount is mine, whatever the profit has to be clubbed with my income only. I dont have problem with that but issue is on whose name the profit needs to be reported.

I have now 3 options and confused which one to choose and which is the right one legally(difficult to visit CA for this as CA charges will be more than the total profit as per my estimate) :

1. I can club her trading income with mine and file returns as business income. But when IT dept checks , wont they find that my wife has done trading under her PAN but not filed returns under her PAN which can cause issues ?

2. I can file returns under her name itself. But wont IT dept tell that income has to be clubbed with mine and pay tax eventhough profit is small ?

3. I can file the income under both my PAN as well as my wife PAN. But wont it result in double reporting of income ?

The complex rules of IT act is making me go crazy !

 

[traderniftybull]

subject to other conditions and replies
show, whatever funds you have given to your wife, as a loan given to her and let her file ITR, if her total gross income crosses the margin limit (250 k or 300 k or 500 k as per her age)
Just my opinion and not a tax advice. I am not a tax expert

 

[canikhil]

@canikhil : You have asked me to refer to the ICAI guidance note on Tax Audits and I have..
I have also posted the links in my earlier posts


Can you post a link where the word "plus" is used .. other than lay people's comments ?

I believe the tax audit guidance is not is pretty clear on what is included in the turnover. The problem here is that you are looking for a specific word ie "PLUS"

 

[Raj232]

not sure if your broker has got it right for Banknifty. You need to consistently calculate the turnover but be advised the options turnover has to be computed properly ie sell side premium plus the absolute difference between sell and buy.

I believe the tax audit guidance is not is pretty clear on what is included in the turnover. The problem here is that you are looking for a specific word ie "PLUS"

The problem here is that you have mentioned the word "PLUS" in your post which is not there in the Tax law.
Why should anyone look for the word "plus" when it is not in their favor ..?

 

[canikhil]

did you read the guidance note?