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

Are you able to understand the replies and act accordingly to this thread ??

  • Yes, able to understand BUT NOT able to take suggested course

    Votes: 0 0.0%
  • Somewhat able to take desicions, BUT seek professional help in my area

    Votes: 0 0.0%
  • Find it tough to understand the replies hence always seek other professional help

    Votes: 0 0.0%
  • Not able to understand any of the replies !!!

    Votes: 0 0.0%

  • Total voters
    4
  • Poll closed .

canikhil

Well-Known Member
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 ..?
did you read the guidance note? look for a word Included. Otherwise, you may keep looking for your specific word. With regards to tax law, please note that it doesn't define the word turnover!! The guidance note therefore goes on to explain what it is included in the turnover.

With regards to my previous post, I apologize for making things easier for people to undertake the computation. From next time, would just advise your Honor to refer the tax law itself!!
 
Last edited:
I'm a trader if i receive any donation for sharing any trading idea how will it be taxed?
If the other side is not treating/taking, this amount as an expanse, then he (if other side is not an unknown entity, and is a friend) may gift you this amount. But conditions are, the amount should not be 50K+and total amount received by you as gift in a FY, from (all) friends, should not be more than 50K otherwise whole amount (recd as gift) will be taxable.
BTW, if the other side is a relative, then the treatment of gift will be different.
I hope that I am right in my view.
 
Last edited:
I'm a trader if i receive any donation for sharing any trading idea how will it be taxed?
It is not donation.It is fees which is income and hence charged to tax. Donation is normally given to public/social institutions . Income tax dept will not accept it as a donation.

Smart_trade
 

Raj232

Well-Known Member
The Guidance note makes it pretty clear :)

Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961

5.14 The turnover or gross receipts in respect of transactions in shares, securities and derivatives may be determined in the following manner.
(a) Speculative transaction: A speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips.

Thus, in a speculative transaction, the contract for sale or purchase which is entered into is not completed by giving or receiving delivery so as to result in the sale as per value of contract note. The contract is settled otherwise and squared up by paying out the difference which may be positive or negative. As such, in such transaction the difference amount is 'turnover'. In the case of an assessee undertaking speculative transactions there can be both positive and negative differences arising by settlement of various such contracts during the year.

Each transaction resulting into whether a positive or negative difference is an independent transaction. Further, amount paid on account of negative difference paid is not related to the amount received on account of positive difference.

In such transactions though the contract notes are issued for full value of the purchased or sold asset the entries in the books of account are made only for the differences. Accordingly, the aggregate of both positive and negative differences is to be considered as the turnover of such transactions for determining the liability to audit vide section 44AB.

Here you go.. the explanation is quite clear :) Thanks everybody :)
 
Last edited:
I find this thread very informative. It was very good idea to start it. I find that different countries would have different tax rules. So, if you have an account with broker registered in other country, would you have to pay taxes in your brokers country, or in your resident one?
 

canikhil

Well-Known Member
I find this thread very informative. It was very good idea to start it. I find that different countries would have different tax rules. So, if you have an account with broker registered in other country, would you have to pay taxes in your brokers country, or in your resident one?
1. You have to invariably file your tax return in the country of residence

2. Generally you would be required to pay the taxes in the country of source of income also and claim the credit for such taxes in your tax return in the country of residence. The relevenat Double taxation avoidance agreement would apply.
 
hi
I have a query.lets say we have a Private limited company. We have two business area from same company. One area is future & option trading in intraday & second busiess area is FILM production.Suppose in some financial years, we get 1 crore Rs profit in F& O Trading..but we loss 90 lacs Rs in Film production..So on what amount we have to pay tax?
thanks
 
The Guidance note makes it pretty clear :)

Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961

5.14 The turnover or gross receipts in respect of transactions in shares, securities and derivatives may be determined in the following manner.
(a) Speculative transaction: A speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips.

Thus, in a speculative transaction, the contract for sale or purchase which is entered into is not completed by giving or receiving delivery so as to result in the sale as per value of contract note. The contract is settled otherwise and squared up by paying out the difference which may be positive or negative. As such, in such transaction the difference amount is 'turnover'. In the case of an assessee undertaking speculative transactions there can be both positive and negative differences arising by settlement of various such contracts during the year.

Each transaction resulting into whether a positive or negative difference is an independent transaction. Further, amount paid on account of negative difference paid is not related to the amount received on account of positive difference.

In such transactions though the contract notes are issued for full value of the purchased or sold asset the entries in the books of account are made only for the differences. Accordingly, the aggregate of both positive and negative differences is to be considered as the turnover of such transactions for determining the liability to audit vide section 44AB.

Here you go.. the explanation is quite clear :) Thanks everybody :)
Thanks

Now do we have anything similar (guidelines) for calculating TO for options trading . . .

.
 

Similar threads