Zerodha - Number One Discount Broker in India

Hi Guys,

One of my friends is doing occasional F&O trading. He has performed less than 50 F&O transactions in FY 2013-14. His F&O turnover is less than 10 lakhs. He has a F&O loss of around 20 K from these trades.

Is it compulsory for him to go for a tax audit ?

He does wish to carry forward his losses, so is it fine if he does not declare these losses while filing returns.

He is a salaried professional coming in 20% tax bracket.

Any help would be appreciated.
Looks like there is lot of confusion.. Let me make it clear that tax audit is only required if turnover is above 1 cr. So in case your case, Just carry forward the loss, Dont worry. Just keep the evidence like contract notes, in case required in future if any querry raised
 

Zerodha

Well-Known Member
Hi Guys,

One of my friends is doing occasional F&O trading. He has performed less than 50 F&O transactions in FY 2013-14. His F&O turnover is less than 10 lakhs. He has a F&O loss of around 20 K from these trades.

Is it compulsory for him to go for a tax audit ?

He does wish to carry forward his losses, so is it fine if he does not declare these losses while filing returns.

He is a salaried professional coming in 20% tax bracket.

Any help would be appreciated.
Yes if profit is less than 8% of the turnover and his gross total income is over 2lks(which I guess it is, because he is a salaried indvidual), he will need an audit..

Check this post if you have any queries: zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified
 

Zerodha

Well-Known Member
Dear Zerodha can you help me with the below

1. Margin required for an equity option calendar spread

For example sell Aug 7800 CE and buy Sep 7800 CE

2. Can I execute this spread in one single order

For example buy the above spread @100

3. Will the margin requirements differ during the last week (I meant will the margin benefit be not available in the last week)

4. Do you have any mobile platform available

Thanks
1. Check our SPAN calculator: https://zerodha.com/margin-calculator/SPAN/

You will need around 28k, margin benefit of around 2k.

2. You can place both orders at one time using the spread order option, but you can't place an order to buy this spread at Rs 100.

3. It will be available throughout.

4. Yes Mobile available.
 
Zerodha,
ICICIDirect has launched optionplus facility which allow intraday trade in option segment with a margin of nearly Rs. 1600/-. Please consider it to introduce at your plateform.
 
Few queries regarding currency derivative expiry.

1) The currency derivatives expire at 12 Noon. Why do I still continue to get quotes till 12:15? Can I trade during the time 12 to 12:15?

2) The USDINR14AUG closed at 60.1 at 12:14 PM. Then suddenly at 12:16 the price rises to 60.41. How does that work? And I cannot find any entry for 12:15 in the Data Table? Whats all the mystery about currency expiry. :confused:

3) Why 12 PM? why cant it expire at the EOD like other contracts such as Nifty Futures?
 
Yes if profit is less than 8% of the turnover and his gross total income is over 2lks(which I guess it is, because he is a salaried indvidual), he will need an audit..

Check this post if you have any queries: zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified
so is that mean that there is a loss of 20k in F&O ,turnover less than one cr. BUT total income not above 2 lakhs. then no tax audit??
 

Zerodha

Well-Known Member
Few queries regarding currency derivative expiry.

1) The currency derivatives expire at 12 Noon. Why do I still continue to get quotes till 12:15? Can I trade during the time 12 to 12:15?

2) The USDINR14AUG closed at 60.1 at 12:14 PM. Then suddenly at 12:16 the price rises to 60.41. How does that work? And I cannot find any entry for 12:15 in the Data Table? Whats all the mystery about currency expiry. :confused:

3) Why 12 PM? why cant it expire at the EOD like other contracts such as Nifty Futures?
Check this http://tradingqna.com/2177/how-is-the-settlement-price-for-currency-futures-arrived-at
 

Similar threads