Fire your tax related queries and i would get it solved!!!

[wattax]

Oops....what is the quantum in terms of percentage to the total assets ???

If not much then nothing can be done except to introduce this asset this year after debiting the asset and crediting the capital account....this is only way out it seems now.

The percentage is 90% at least...

Should I still go through with your plan?

Also, what's the statute of limitations on tax cases?

 

[diosys]

urban land.....

The property where i reside in mumbai...

Bought for 12L

Present market value may fetch 45L on papers

Technically it needs to be valued. BUT practically i have never seen anyone do it for the sake of wealth tax....

generally assessment under wealth tax is done rarely...

In case you are the one who abide exactly by the law then valuation is required.

 

[diosys]

The percentage is 90% at least...

Should I still go through with your plan?

Also, what's the statute of limitations on tax cases?

I dont think there is any option left now rather than to introduce the asset by crediting the capital account.

tax cases can be opened for 6 years....but case more than 2 years old it would be tough for them to open....

 

[mfrahman]

Hi Diosys,

When sould I pay the Income Tax on earnings from tradings,i.e till 31st march I will be trading,so I am not sure how much profit/loss can come in the coming days.Hope am clear in my query.

Thanks & Regards,

MFRahman.

 

[magnet]

Technically it needs to be valued. BUT practically i have never seen anyone do it for the sake of wealth tax....

generally assessment under wealth tax is done rarely...

In case you are the one who abide exactly by the law then valuation is required.

Na i was just asking for future reference...Last year i started filing my mom return and for that purpose we decided to keep jewelery and cash within 12.5lakh limit(as wealth tax was on 15 lakh)....But when asked to aCA intern he said dont keep that in mind so seriously he said we have no clients paying wealth tax plus one has around 15Cr in account...But just before the tax year ends they rolls the money and as soon as new year starts the chap take the cash back into account..lolz...I know its an illegal practice

 

[wattax]

I dont think there is any option left now rather than to introduce the asset by crediting the capital account.

tax cases can be opened for 6 years....but case more than 2 years old it would be tough for them to open....

Thank you Diosys. I will do as you've said.

One last clarification though. What do you mean by "debiting the asset and crediting the capital account"?

Crediting the capital account(under the assets section of the Balance sheet, correct?) I understand, but what do I debit?

 

[sagar55]

Diosys, your clear reply of Income Tax questions is really deserve applaud.

I have two queries:

1. while calculating option premium turnover, shall I include both side (buy + Sell) premium of one contact OR one side premium.
For example: If I write (sold) 50 unit (one lot) Nifty 5000 PE @ 150, then which premium I will include in calculating my Option premium turnover in below three cases,
A. I bought it @ 150 on same day.
B. I bought it @ 150 after few days.
C. I left it till its expiry date & it got expired worthless.

2. I have 8K loss under Short term loss (delivery based trading) that I mentioned in my last year IT filing (before 31st July). Now my query is, can this ST loss will be offset with my this year profit from my option trading?

Sagar

 

[diosys]

Hi Diosys,

When sould I pay the Income Tax on earnings from tradings,i.e till 31st march I will be trading,so I am not sure how much profit/loss can come in the coming days.Hope am clear in my query.

Thanks & Regards,

MFRahman.

tax can be paid anytime till the due date of filing of return.....it can be paid even after the FY....

 

[diosys]

Thank you Diosys. I will do as you've said.

One last clarification though. What do you mean by "debiting the asset and crediting the capital account"?

Crediting the capital account(under the assets section of the Balance sheet, correct?) I understand, but what do I debit?

the missed out bonds is what is going to be debited.....and capital is on the liability side of the balance sheet.

 

[diosys]

Diosys, your clear reply of Income Tax questions is really deserve applaud.

I have two queries:

1. while calculating option premium turnover, shall I include both side (buy + Sell) premium of one contact OR one side premium.
For example: If I write (sold) 50 unit (one lot) Nifty 5000 PE @ 150, then which premium I will include in calculating my Option premium turnover in below three cases,
A. I bought it @ 150 on same day.
B. I bought it @ 150 after few days.
C. I left it till its expiry date & it got expired worthless.

2. I have 8K loss under Short term loss (delivery based trading) that I mentioned in my last year IT filing (before 31st July). Now my query is, can this ST loss will be offset with my this year profit from my option trading?

Sagar

for turnover purposes of future related segment the difference between the profit and loss is your turnover....in case A and B there is no profit and loss hence 0 turnover....for option C since the loss is 7500 therefore that becomes your turnover.

2.) No option trading is business income and not capital gain hence it would not be allowed.