Zerodha Part 2

[futures]

Sachin@Zerodha,

Thanks for the zconnect link about taxation update.

I have a quick question..

Lets say a F&O trader's Gross profit = Rs.70
Gross Loss = Rs 30
Total Turnover = Rs.100

So, net profit = Rs.40 which is 40% of the turnover(more than 8% of turnover) and for convenience purpose, lets assume that the trader did not cross 1 cr turnover.

Should the trader get his ITR audited in this case? Kindly confirm and as another forum member requested, any lead with CA in Bangalore would be much appreciated.

 

[a1b1trader]

Sachin@Zerodha,

Thanks for the zconnect link about taxation update.

I have a quick question..

Lets say a F&O trader's Gross profit = Rs.70
Gross Loss = Rs 30
Total Turnover = Rs.100

So, net profit = Rs.40 which is 40% of the turnover(more than 8% of turnover) and for convenience purpose, lets assume that the trader did not cross 1 cr turnover.

Should the trader get his ITR audited in this case? Kindly confirm and as another forum member requested, any lead with CA in Bangalore would be much appreciated.

When turnover is less than 1 crore and profit declared is more than 8% (as in the example above), then one can simply file his ITR 4. (But to fill all the columns of ITR4 for F&O trades is not that easy) No compulsory audit of accounts is necessary in this case. Please note that it is the audit of accounts and not of ITR.

Compulsory audit is required,
1. When the total turnover is more than 1 crore (irrespective of profit or loss or of percentage of P or L)
2. When total turnover is less than 1 crore and profit is less than 8%. (As loss is less than 8% profit, the condition of less than 8% also implies for loss making turnover)

 

[rohitsx]

Hi

I had some prob with Nest Trader, but it was solved by your technical guy over ammy admin . But i later realised that after the repair work my ms office 2007 and all files using ms office stoped working. I think something has gone wrong during the nest trader repair. If you know the solution to this . Kindly help me solve this error . From the error mesaage it looks like a windows installer problem.

 

[Gandhar.]

is there any way to get the MA(moving averages in nest?)

 

[TraderRavi]

When turnover is less than 1 crore and profit declared is more than 8% (as in the example above), then one can simply file his ITR 4. (But to fill all the columns of ITR4 for F&O trades is not that easy) No compulsory audit of accounts is necessary in this case. Please note that it is the audit of accounts and not of ITR.

Compulsory audit is required,
1. When the total turnover is more than 1 crore (irrespective of profit or loss or of percentage of P or L)
2. When total turnover is less than 1 crore and profit is less than 8%. (As loss is less than 8% profit, the condition of less than 8% also implies for loss making turnover)

this is ridiculous rule, if your yearly turnover is 5000, with profit less than 8%, you have to get audited, and CA charges may be more than yearly turnover.............:lol:

 

[Zerodha]

Sachin,
If zerodha can provide the reference of CA, who knows about this defective returns 139/9 and section 44AD in Bangalore it will be helpful.
Spoke to CPC helpline number they are helpless and telling to upload the same return again

If it is Bangalore, you can reach out to these guys helping with the blog: http://www.zerodha.com/z-connect/blog/view/taxation-for-traders-introduction

www.taxiq.in...

 

[VJAY]

If it is Bangalore, you can reach out to these guys helping with the blog: http://www.zerodha.com/z-connect/blog/view/taxation-for-traders-introduction

www.taxiq.in...

Is they only attend banglore clients only? actually many CA's not know the taximplecations of traders ...

 

[rohitsx]

Hi

I had some prob with Nest Trader, but it was solved by your technical guy over ammy admin . But i later realised that after the repair work my ms office 2007 and all files using ms office stoped working. I think something has gone wrong during the nest trader repair. If you know the solution to this . Kindly help me solve this error . From the error mesaage it looks like a windows installer problem.

I hope you wll not ignore my problem

 

[Zerodha]

Sachin@Zerodha,

Thanks for the zconnect link about taxation update.

I have a quick question..

Lets say a F&O trader's Gross profit = Rs.70
Gross Loss = Rs 30
Total Turnover = Rs.100

So, net profit = Rs.40 which is 40% of the turnover(more than 8% of turnover) and for convenience purpose, lets assume that the trader did not cross 1 cr turnover.

Should the trader get his ITR audited in this case? Kindly confirm and as another forum member requested, any lead with CA in Bangalore would be much appreciated.

In such a case where turnover is less than 1 crore and profit more than 8%, there is no need to get your books audited,


There is this gaping loophole, which we could not share on the blog..

By introducing trading into 44AD, if your turnover is less than 1 crore and profit more than 8%, you can get away showing only 8% of turnover as profit and pay taxes on that profit only..

This whole income tax thing is a mess and with them going online and getting sophisticated and the govt pressurizing them to collect more taxes, I guess it is a recipe for disaster..

 

[Zerodha]

Hi

I had some prob with Nest Trader, but it was solved by your technical guy over ammy admin . But i later realised that after the repair work my ms office 2007 and all files using ms office stoped working. I think something has gone wrong during the nest trader repair. If you know the solution to this . Kindly help me solve this error . From the error mesaage it looks like a windows installer problem.

Rohit, Can you send your client id to [email protected], we can get someone from our tech team to support u on this..