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

[Trade2Learn]

Technically speaking even 1 trade requires that you have an audit done if the profit is less then 8% of the turnover.
However, as you have done so few trades, you can take your chance and file your return without an audit done.
Most probably, your return should be accepted.
I am presuming that as the trades were squared up intraday itself, the losses would be a couple of thousands only

Trades were squared off intraday and loss was around 10-12000.
Can i file return without auditing?
shouldn't be the law other way around that if the turnover is less than 1 crore and profit above 8% then the auditing should be required since the person may try to hide the profit %.
But they require auditing for less than 8% and even loss.What kind of ridiculous law is this where one is losing and above that he needs to spend on CA fees to get the auditing done .

 

[shravank30]

Trades were squared off intraday and loss was around 10-12000.
Can i file return without auditing?
shouldn't be the law other way around that if the turnover is less than 1 crore and profit above 8% then the auditing should be required since the person may try to hide the profit %.
But they require auditing for less than 8% and even loss.What kind of ridiculous law is this where one is losing and above that he needs to spend on CA fees to get the auditing done .

Nothing about taxation is based on common sense.
IT Department works in mysterious ways.
Leaving that aside, what is your other source of income?
Are you going to adjust this loss with any other profit or it will be written off ?
Do you have other Equity trades also ?

 

[Gandhar.]

hi...
I am a student and earning less than taxable income from stock market(also no other income). Turnover is less than 1cr and profit is more than 8% of the turnover. is it necessary for filing the income tax or getting the books audited(i dont think as per 8% profit). What are the basic knowledge about the filling of income tax if i have to do it.
I trade in f&o and in currency also.

 

[shravank30]

hi...
I am a student and earning less than taxable income from stock market(also no other income). Turnover is less than 1cr and profit is more than 8% of the turnover. is it necessary for filing the income tax or getting the books audited(i dont think as per 8% profit). What are the basic knowledge about the filling of income tax if i have to do it.
I trade in f&o and in currency also.

AS F&O Trades are business income, you have to file a income tax return regardless of the profit, loss or turnover.
Having more then 8% profit and less then 1 Cr Turnover, will save you the money and hassle of getting your accounts audited.
Use the ITR4 Excel utility available free from the income tax site to fill the forms correctly.

You can take help of the members here if required or approach a CA to do the same.

 

[Trade2Learn]

Nothing about taxation is based on common sense.
IT Department works in mysterious ways.
Leaving that aside, what is your other source of income?
Are you going to adjust this loss with any other profit or it will be written off ?
Do you have other Equity trades also ?

My source of income is business only(work from home types),income below 2 lakhs,

No i will not adjust any loss or any profit.I just want to getaway with the hassles of auditing this time.Also u have mentioned in one of the above replies that one can trade in nse cash as much he wants without auditing and all so this year i will do that only .

Equity trades are negligible types 10 share or 20 shares and they are also only 2-3 .

 

[shravank30]

My source of income is business only(work from home types),income below 2 lakhs,

No i will not adjust any loss or any profit.I just want to getaway with the hassles of auditing this time.Also u have mentioned in one of the above replies that one can trade in nse cash as much he wants without auditing and all so this year i will do that only .

Equity trades are negligible types 10 share or 20 shares and they are also only 2-3 .

In that case file your returns without auditing.
Declare all the income honestly. Do not hide any income.
In the worst case scenario also, you may have to get your accounts audited in case you receive a notice from the department but no penalty should be levied.

 

[Trade2Learn]

AS F&O Trades are business income, you have to file a income tax return regardless of the profit, loss or turnover.

You can take help of the members here if required or approach a CA to do the same.

Here u have mentioned about F&O trades.

Does one needs to file income tax if a person trades -

case 1- Only intraday cash

case 2- Only short term cash delivery

case 3- Both

I mean to say is it compulsory to file return even if a person is trading as mentioned above irrespective of profit, loss or turnover??

 

[Kabira 21]

Turnover is less than 1cr means what?

 

[Trade2Learn]

Turnover is less than 1cr means what?

it means suppose u did 2 trades in futures one has a profit of 3000 and the other has loss of 1000 then ur turnover is the absolute sum of profit and loss which is 4000.I m not sure if this is correct way of calculating,kindly confirm from other sources

 

[shravank30]

Here u have mentioned about F&O trades.

Does one needs to file income tax if a person trades -

case 1- Only intraday cash

case 2- Only short term cash delivery

case 3- Both

I mean to say is it compulsory to file return even if a person is trading as mentioned above irrespective of profit, loss or turnover??

If you have stock market trades, filing of returns is advised even if not compulsory (Not sure of rules)
The form to be used will depend on your trades