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

[gvrdaytrade]

Hi,

pls tell me..

I am doing nse cash intraday trading for past 8 months,
daily turnover is 30lakhs...
But my net profit in loss.!!

My daily turnover is 30 lakhs and monthly turnover comes more than 5 croes.. (i am doing only daytrading in nse cash market)

tax audit is necessary for me ???

Tax auditing required for nsecash intraday trading ???
How much limit for tax audit..

If i trade f&o day trading.. How much limit for tax audit??

Pls tell me
my english is poor..

I am from chennai..... If any person from chennai to clarify my doubts.. I can meet straightly.

Thanks

 

[shravank30]

Hi All,

I am full time employee usually trading (futures) in my free-time to earn extra income. I am already in the higher tax bracket thru my employment and wish to understand the details about tax reporting from my trading front.

I am sure some or all of this would have already been discussed here but since I could not find the information in the initial posts and lot of the IT structure has also changed since the thread started I am putting these here again -

1. Is it mandatory for a trader to file IT returns irrespective of profit/loss made?
2. IT returns need to be audited by a CA or broker statements/reports suffice?
3. Will my trading income be combined with my salary income?
4. If NO to 4 then how will my trading income be taxed?
5. If I had losses in my initial years can this be adjusted with my current and future income in stock trading ?
6. What is difference between short-term trading and long-term trading?

Currently these are the one's I could think of ....would put up more if I can think or find something relevant.

1. Yes
2. If your turnover is more then 1 Crore or Profit is less then 8% of the turnover, then you need to get your accounts audited
3. Yes your trading income will be clubbed to your salary income and taxed according to the slab you fall in
4. NA
5. You can carry forwarded your losses for 8 years and future gains can be adjusted against the losses brought forward. Salary income cannot be adjusted against stock market losses
6. Short term trading is when you sell a share within 1 year of purchasing it. Long term is when you hold the same for a period of more then 1 year. Both are taxed differently

 

[shravank30]

Hi,

pls tell me..

I am doing nse cash intraday trading for past 8 months,
daily turnover is 30lakhs...
But my net profit in loss.!!

My daily turnover is 30 lakhs and monthly turnover comes more than 5 croes.. (i am doing only daytrading in nse cash market)

tax audit is necessary for me ???

Tax auditing required for nsecash intraday trading ???
How much limit for tax audit..

If i trade f&o day trading.. How much limit for tax audit??

Pls tell me
my english is poor..

I am from chennai..... If any person from chennai to clarify my doubts.. I can meet straightly.

Thanks

NSE Cash intraday trading is termed as speculation, No audit is necessary on any amount of speculation and whether profit or loss is immaterial

F&O is business income and if your annual turnover exceeds 1 Crore, you have to get audit done.
You will also be required to get audit done even if your turnover is les then 1 Cr but your profit is less then 8% of the turnover.
See previous posts on how to calculate the F& O turnover
Dont worry about your English. You are able to express yourself very well

 

[love2trading]

hi,


anyone from pondicherry

thanks

 

[gvrdaytrade]

hi shravank30 sir,

thanks for your reply..

can you give any useful url link for the taxation matters about day trading in nse cash market and f&o day trading.

you told, nse cash market income is treat as speculation income..
speculation income is 30% slab rate??

i am salaried person..
monthly 18000/- salary
if i earned 200000/- in day trading in financial year...
how it should be calculate sir...

in my office they paying tax for my salary income...
i should be submit my daytrading income to my office or can i consult any auditor...

pls reply sir...
thanks sir

 

[shravank30]

hi shravank30 sir,

thanks for your reply..

can you give any useful url link for the taxation matters about day trading in nse cash market and f&o day trading.

you told, nse cash market income is treat as speculation income..
speculation income is 30% slab rate??

i am salaried person..
monthly 18000/- salary
if i earned 200000/- in day trading in financial year...
how it should be calculate sir...

in my office they paying tax for my salary income...
i should be submit my daytrading income to my office or can i consult any auditor...

pls reply sir...
thanks sir

You have to add the speculation income to your salary income and based on the slab you fall in, you have to pay the tax.
It is not compulsory for you to give this detail to your office.
It is better that you add the speculation income to your salary income and pay the tax directly without involving the office, as your income can fluctuate wildly every year.
The calculation of tax is very simple and in my opinion you can do it yourself or maybe take the help of some member in doing the same.
Every year the IT Department issues a free Excel program which does all the tax calculations for you, if you just fill in the various types of incomes.
But if you are still uncomfortable, you can ask any auditor to that for you.
You can even think of using the services of the Tax return preparers which may work out cheaper for you.
The final decision is yours.
You can also avail of Section 80C benefit of Rs 1 lakh by investing in the specified items and save tax, but I fail to understand why your company is deducting TDS when I am sure after deducting PF and HRA etc. your taxable income should be less then 2 lakhs

 

[gvrdaytrade]

hi shravank30 sir,

pls clarify

if income comes from NSE intraday cash market - this is speculation income like crosswards, lottery etc.... (tax is 30% from total net profit) (unlimited turnover) no audit required.. -- i am right ???


if income comes from NSE F&O intraday market - this to be treat as business income?? (tax as per slab rate) -- audit required is turnover crosses 40 lakhs or 1 croe ?? -- which one sir..

i am doing from home cum office... can i add electricity bill, office rent (one portion of my home), internet bill... etc.. etcc..

can i add this both in speculative income and business income ????

pls reply sir

 

[shravank30]

hi shravank30 sir,

pls clarify

if income comes from NSE intraday cash market - this is speculation income like crosswards, lottery etc.... (tax is 30% from total net profit) (unlimited turnover) no audit required.. -- i am right ???


if income comes from NSE F&O intraday market - this to be treat as business income?? (tax as per slab rate) -- audit required is turnover crosses 40 lakhs or 1 croe ?? -- which one sir..

i am doing from home cum office... can i add electricity bill, office rent (one portion of my home), internet bill... etc.. etcc..

can i add this both in speculative income and business income ????

pls reply sir

Speculation income is not like lottery crossword etc. There is no fixed income tax.
It is added to your taxable income and you taxes as per the slab you fall in after adding all your source of incomes and allowable deductions
Example your salary 2 lakhs
speculation income 1 lakh
total 3 lakhs
pf deduction 15000
electricty 5000
Internet 5000
80C Invetment 50,000
Total 75,000
Taxable income 2.25 lakhs
2 lakhs free
25,000 taxed@ 10% so tax is 2,500



in F&O There is no difference between intraday or 2nd day.
The limit for Audit is 1 Cr turnover or atleast 8% profit in case turnover is less then 1 Cr
You can claim the electricity, rent, internet charges from the profits provided you have rent reciepts, and the charges are reasonable.
If you are claiming HRA benefits from your employer and you are trading from that house only, then you cannot claim rent exemption twice for the same rent

 

[gvrdaytrade]

Hi,

thanks for you reply sir.

another one general question sir ....

if we hide the intraday income,,

how IT department knows it,,,??? they can easily identify it ??
(broking house sending any income report to the IT department ?? or how they know sir...) :annoyed:
(or my saving account bank sending any report to the IT department ?? (my credit and debit information)) :annoyed:
(or if anyone wellknow person for me report to IT department as spy ??)

this is silly question , but pls reply sir..

thanks

 

[shravank30]

Hi,

thanks for you reply sir.

another one general question sir ....

if we hide the intraday income,,

how IT department knows it,,,??? they can easily identify it ??
(broking house sending any income report to the IT department ?? or how they know sir...) :annoyed:
(or my saving account bank sending any report to the IT department ?? (my credit and debit information)) :annoyed:
(or if anyone wellknow person for me report to IT department as spy ??)

this is silly question , but pls reply sir..

thanks

Its not a silly question but a criminal one

When you can live a peaceful life by paying a small tax, why do you want to avoid it?
Moreover, There are 100 of legal ways to avoid paying taxes instead.
You can trade in the name of your wife or parents in case they do not have any income and get the 2 lakh tax free limit.
You are not such a bigshot that the IT department will have to send spies behind you.
The IT department tracks all trades done in the stock market through your PAN Card number and cross checks it with your returns.
If there is any discrepancy between the 2, you get a notice. Its as simple as that