Taxation Discussion

#1
Today being last day of the 2014-15 financial year it is also a last day for filing last year's ( 2013-14) Income Tax Returns.

One very important piece of advice a very seasoned businessman gave me many years ago is NEVER HIDE YOUR INCOME declare all income and file your IT returns.......hiding income is a crime and is punishable....instead claim more expenses, have more taxation heads ( or files in IT language) ....devide your income on family members ...if the expense is disallowed, it is not a crime....

It always pays to be clear of Income Tax...

Smart_trade
 
#3
Re: General Trading Chat

Most traders dont have any income from trading:D
That is the worst case ....it needs some very basis improvements in the way they trade....hopefully they realise that soon before others realise it :D

Smart_trade
 

lemondew

Well-Known Member
#6
Re: General Trading Chat

When your winning play fair dont cheat. This is good when making profits

Put your self in this place

1. You have turnover of 60 lacs
2. You have a loss of 10000 -30000
3. You arent sure when you gonna stop trading
4. you dont have a clear cut profit making system
5. you arent sure if you are going to figure out a way of making profits

In this case do you thing the guy should pay 20k and go for an audit :p

They should have a patch for you where the negative MTM is shown as profits or positive MTM.....roj roj dil nahi tootega :D

ST
 
Last edited:
#7
Re: General Trading Chat

When your winning play fair dont cheat. This is good when making profits

Put your self in this place

1. You have turnover of 60 lacs
2. You have a loss of 10000 -30000
3. You arent sure when you gonna stop trading
4. you dont have a clear cut profit making system
5. you arent sure if you are going to figure out a way of making profits

In this case do you thing the guy should pay 20k and go for an audit :p
My dear friend, it is not a question of what you and I think ( or like) . The law says that if one falls under audit critaria , he needs to get his accounts audited. Or run the risk of getting caught and face the music thereafter. The law is to be followed ( even if it is unfair or wrong ) till it gets changed...

Smart_trade
 
Last edited:

XRAY27

Well-Known Member
#9
Re: General Trading Chat

When your winning play fair dont cheat. This is good when making profits

Put your self in this place

1. You have turnover of 60 lacs
2. You have a loss of 10000 -30000
3. You arent sure when you gonna stop trading
4. you dont have a clear cut profit making system
5. you arent sure if you are going to figure out a way of making profits

In this case do you thing the guy should pay 20k and go for an audit :p

Don't get confused and make people confuse... how many of you really cross 1cr of turnover for compulsory audit !!!...


TURNOVER U/S 44AD ...

Individuals engaged in future and options should keep in mind following things for Income Tax Return filing:
Taxable as Business Income

As per the provision of the Income Tax Act, 1961, income from futures & options (F&O) is treated as normal business income. Thus, profit or loss from such business (F&O) will be taxable as income under the head profits and gains of business or profession whether or not the assesse is carrying on any other business or profession.

Tax will be charged on such income at the normal rates applicable to an individual.
Compliances in case of Profit & Loss

If there is a loss in F&O, here provisions of section 44AD will apply and accordingly audit of books of accounts will also be required. The provision of this section mandates disclosure of at least 8 % of net profit on the gross turnover.

So, in case the assesse does not discloses the same (less than 8 per cent or loss) , the assesse will be required to maintain books of accounts and is required to get tax audit under provisions of section 44AA and 44AB. Thus, pursuant to this change, income from business cannot be below 8 per cent of the gross turnover in any circumstances.

So, if there is a profit in F&O and you are disclosing 8% or more of total turnover as profit then only the income has to be declared as business income and accordingly ITR has to be filed. There will be no need to maintain books of accounts and of audit.
Turnover Calculation

Now, here comes the point calculation of turnover. Determination of turnover in case of F&O is one of the important factors for every individual for the income tax purpose. Turnover must be firstly calculated, in the manner explained below:

The total of positive and negative or favorable and unfavorable differences shall be taken as turnover.
Premium received on sale of options is to be included in turnover.
In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.

Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.
Tax audit under Section 44AB

As Futures & options (F&O) is treated as normal business income, so, if the total sales, turnover or gross receipt from business for the previous year relevant to assessment year exceeds Rs. 60 lacs in FY 2010-11 & 2011-12 (Rs. 1 crore from the FY 2012-13) then its mandatory to get books of accounts audited.
 

TradeJoker

Well-Known Member
#10
Re: General Trading Chat

When your winning play fair dont cheat. This is good when making profits

Put your self in this place

1. You have turnover of 60 lacs
2. You have a loss of 10000 -30000
3. You arent sure when you gonna stop trading
4. you dont have a clear cut profit making system
5. you arent sure if you are going to figure out a way of making profits

In this case do you thing the guy should pay 20k and go for an audit :p
IT Dept . is gonna publish those names who have 500+cr dues , first, let the Dept collect from them :D
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?