Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issues.

[indianscorpion29]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

this is a very good thread....a real eye-opener for beginners like me....i am just a delivery trader in equities.....

pls let me know one thing....

1)suppose i buy shares worth Rs.100,000 in company A

after 2 months the value of these shares in say Rs.150,000

my profit is Rs.50,000
how much would be going towards tax from this profit of Rs.50,000 pls advise...

 

[sudhinbathija]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

In the case study given above, assume that one nifty bot at 3000 and sold for 2900 IN ADDITION to the above for calculation of turnover? Will this loss of 100 be adjusted with the gain of 100 thus making the net turnover only for these two transactions as zero?

 

[veeemkay]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

I don't know how I missed this thread real GEM thread so far.

Thanks a lot Sunil for providing such an important information on this key topic, that is specially important part of trading Business.

Do you have any idea about right software / excel sheet to maintain the books of account for trading business for Indian Market.
Best would be that the software also comes with trade, portfolio mgmt related reports.

Currently, I use excel sheet to track poisition, open risks etc. But it takes me lot of time to reconcile and prepare year end data to file for tax return from my trading tracker.
Any tips/idea/ approach that you can share with us from your experience.

Happy Trading

This is a nice thread.

I have a similar query... Does anyone have any idea about some software / tool or excel sheet that can be used to maintain the books of account for trading business for Indian Market.

VK

 

[deepakji]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Hi Sunil!
Thanks for detailed explanation on so many queries.
The above thread implies that BTST i.e buying shares today and selling shares tomorrow or the day after in which there is no delivery of shares should be considered as income from speculation. Please confirm because my accountant is treating this income as short term capital gains and it increases my turnover

 

[nac]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

^ Yeah it should be considered as STCG. Since you have hold that stock over night, its obviously taken under capital gains. Your accountant was right.
Your trade will be considered under speculation when you buy/sell and cover the same within a day.

 

[nac]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

I have a similar query... Does anyone have any idea about some software / tool or excel sheet that can be used to maintain the books of account for trading business for Indian Market.

I am sure TALLY will do...

 

[nac]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

this is a very good thread....a real eye-opener for beginners like me....i am just a delivery trader in equities.....

pls let me know one thing....

1)suppose i buy shares worth Rs.100,000 in company A

after 2 months the value of these shares in say Rs.150,000

my profit is Rs.50,000
how much would be going towards tax from this profit of Rs.50,000 pls advise...

I tell what I know, confirm with some one.

If you are a full time trader, then it will be treated as business income and tax will be based on individual tax slab. If you are employed and doing trading as well, this could be taken as capital gain and tax will be 15% flat.

 

[nac]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

In the case study given above, assume that one nifty bot at 3000 and sold for 2900 IN ADDITION to the above for calculation of turnover? Will this loss of 100 be adjusted with the gain of 100 thus making the net turnover only for these two transactions as zero?

Sorry I can't find any case study above. But that ain't matter to answer your query. Turnover will be calculated cumulatively i.e., profit of 100 (+100) and loss 100 (-100) will be calculated as 100+100 = 200; not like 100-100 = 0.

 

[nac]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

This thread seems to be inactive... Better you guys ask your tax related queries here http://www.traderji.com/taxation-ma...-related-quieries-i-would-get-solved-129.html

 

[NCHANDRASEKARAN1954]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Is any software packages are available to record daily share trading activities including IPOs, Bonus shares received, investment in mutual funds, options trading under F&O segment, calculation of capital gains/loss arising out of purchase and sale of shares. Computation of income tax on the earnings through these transactions.

I am planning to commence invest in commodity and Forex trading also.