Traders - Compliances under Revised 44AD

[Rohitt]

Bhai , the problem is not with me , it is with my friends. The major issue is that it is BELATED RETURN .
Anyway let's hope for the best and wait for Nikhil sir guidance.

 

[Rohitt]

I had filed myself and used ITR 4S as my profit was more than 8 % of my turnover but after receiving scrutiny notice i realized i had calculated turnover wrongly and showed bank balance under cash in hand so that might be a reason. Proceedings have not started in my scrutiny case so far.

I think in many cases the issue may get resolved by BxxxE
& they may not put any penalty .

Please share anything about scrutiny if you know it.

Thanks

 

[wisp]

If you are getting a tax pnl from your broker I don't think your CA (or any) should have a problem.

Thanks, would just the tax pnl from broker be enough for the CA for FNO audit? Should contract notes be given as well? Thanks again

 

[travi]

Thanks, would just the tax pnl from broker be enough for the CA for FNO audit? Should contract notes be given as well? Thanks again

Check with CA, its based on trust. Ultimately, if you sit and re-do all individual contract notes, you'll end up with tax pnl itself. so why re-do tedious work ?

Share the contract notes for supporting docs but no need to re-do.

Things sometime get blown out of proportion with CA's not doing proper work. Truth is how FnO TO is computed has no effect on actual PnL. Its negligence based on Traders trying to twist the laws to avoid audit.
Tax is computed based on PnL and not TO. If you're in all circumstances doing Audit, TO can go out of window.

And the lethargy of declaring flat 8% profit, manipulating TO etc wala chakkar is an intentional collusion of Client and CA to cut corners. Both are at fault.

 

[wisp]

Check with CA, its based on trust. Ultimately, if you sit and re-do all individual contract notes, you'll end up with tax pnl itself. so why re-do tedious work ?

Share the contract notes for supporting docs but no need to re-do.

Things sometime get blown out of proportion with CA's not doing proper work. Truth is how FnO TO is computed has no effect on actual PnL. Its negligence based on Traders trying to twist the laws to avoid audit.
Tax is computed based on PnL and not TO. If you're in all circumstances doing Audit, TO can go out of window.

And the lethargy of declaring flat 8% profit, manipulating TO etc wala chakkar is an intentional collusion of Client and CA to cut corners. Both are at fault.

Ok, thanks so much!

 

[joetyson]

Please help, need answers ASAP

Hello Friends,

I have few questions about taxation and need urgent answers. I have a computers business and I always my ITR under section 44ad. My turnover for my business is 65 lakh.

I have also done lots of options trading in last financial year but I had a overall loss of 1.5 lakh. I sell options worth 35 lakh.

Is it compulsory to include this 35 lakh turnover with my other business turover? I do not want hassles of audit but I also do not want to pay taxes for this options trading since I didn't earned anything.

I read somewhere that it is upto me to declare myself as trader or investor. If I declare myself as investor, then can escape this situation?

Please help as I have to file ITR next week.

 

[Rito]

Re: Please help, need answers ASAP

Hello Friends,

I have few questions about taxation and need urgent answers. I have a computers business and I always my ITR under section 44ad. My turnover for my business is 65 lakh.

I have also done lots of options trading in last financial year but I had a overall loss of 1.5 lakh. I sell options worth 35 lakh.

Is it compulsory to include this 35 lakh turnover with my other business turover? I do not want hassles of audit but I also do not want to pay taxes for this options trading since I didn't earned anything.

I read somewhere that it is upto me to declare myself as trader or investor. If I declare myself as investor, then can escape this situation?

Please help as I have to file ITR next week.

Take help from a CA man for filing your return, they would know the best. You can easily get one for 300 or 400 bucks.

 

[traderniftybull]

Re: Please help, need answers ASAP

are you joking
300/400 for filling a business return and that too with option trading :lol:
a CA wont file a simple ITR 1 for this much amount.

 

[canikhil]

Re: Please help, need answers ASAP

Hello Friends,

I have few questions about taxation and need urgent answers. I have a computers business and I always my ITR under section 44ad. My turnover for my business is 65 lakh.

I have also done lots of options trading in last financial year but I had a overall loss of 1.5 lakh. I sell options worth 35 lakh.

Is it compulsory to include this 35 lakh turnover with my other business turover? I do not want hassles of audit but I also do not want to pay taxes for this options trading since I didn't earned anything.

I read somewhere that it is upto me to declare myself as trader or investor. If I declare myself as investor, then can escape this situation?

Please help as I have to file ITR next week.

Given the new amendments introduced last year, once you choose an option - to go for 44AD or not, you cannot change the option for next five years.

So i would better suggest that you go for net income option and merge the turnover of both and get the audit done.

with regards to declaring yourself as a trader or investor, it never helps to go for investor option as it is much more difficult to adjust capital losses in future.

 

[joetyson]

Re: Please help, need answers ASAP

I have contacted more than 10 CA's and every one has their own opinion on calculation of turnover. Some says on profit and loss has to be calculated, some says you are not allowed file under section 44ad since your are trading F&O. Can anyone please let me know what will be turnover in this case- https://prnt.sc/fmr1tr