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

[diosys]

Re: Question related to Tax on F&O trades

Hello,

Is there a limit on transactions beyond which F&O trades needs to be audited (Treated as business not individual?)

Also, what constitutes a turnover? Is it buy price + sell Price or only sell price.

Eg: If I buy for 100 Rs and Sell for 150 Rs., is my turnover 250 Rs?


Please help! This is the first time I am doing F&O and worried about tax.

its the aggregate of profit and loss....

please go through this thread (atleast the initial pages) in order to better understand.

 

[alroyraj]

If one has mutiple accounts say some singly and others joint with other siblings who may or may not be assessable to tax then what? How is the earnings split for tax computation?

 

[nac]

If one has mutiple accounts say some singly and others joint with other siblings who may or may not be assessable to tax then what? How is the earnings split for tax computation?

Is this possible to have joint account with siblings???? I doubt that...

Should be split evenly, I guess. I am waiting diosys comment on this...

 

[alroyraj]

Is this possible to have joint account with siblings???? I doubt that...

Should be split evenly, I guess. I am waiting diosys comment on this...

It is possible because while applying for IPOs we have applied together. This is one way of applying, singly and then with family members. This was done long time ago. So that got me thinking if we can have multiple accounts with others to open a brokerage account with the same broker we have already as an individual. Because somewhere i read about restrictions on not having more than 1 acc at a broker. Cannot find that thread.

 

[nac]

It is possible because while applying for IPOs we have applied together. This is one way of applying, singly and then with family members. This was done long time ago. So that got me thinking if we can have multiple accounts with others to open a brokerage account with the same broker we have already as an individual. Because somewhere i read about restrictions on not having more than 1 acc at a broker. Cannot find that thread.

I wonder hearing this "joint account with siblings"

What? Can't have more than one account with a broker? If I am correct somewhere in this very same thread, someone have mentioned that he/she having two account with a broker or can have two account with a broker.

You call your RM, and ask him to open another demat cum trading account in your name with IB. I don't think he will say NO. Let see...

 

[alroyraj]

I wonder hearing this "joint account with siblings"

What? Can't have more than one account with a broker? If I am correct somewhere in this very same thread, someone have mentioned that he/she having two account with a broker or can have two account with a broker.

You call your RM, and ask him to open another demat cum trading account in your name with IB. I don't think he will say NO. Let see...

Its not that I thought of it. Somewhere here on traderji there was this detailed thread with comments by quite a few seniors telling that is not possible. I am not able to locate it. That thread had an argument saying that Shankar Sharma of MF Global fame took two opposite positions in 2 accounts,etc gor prosecuted...Okay that person said more than 1 account. he did not say it was only in his name.
Many members here trade in their say wife's account etc, or in a joint account for this reason, so you understand my point.

 

[nac]

Its not that I thought of it. Somewhere here on traderji there was this detailed thread with comments by quite a few seniors telling that is not possible. I am not able to locate it. That thread had an argument saying that Shankar Sharma of MF Global fame took two opposite positions in 2 accounts,etc gor prosecuted...Okay that person said more than 1 account. he did not say it was only in his name.
Many members here trade in their say wife's account etc, or in a joint account for this reason, so you understand my point.

OK. Somebody with wide knowledge about this will clear our doubts. We'll wait till then and simultaneously look for solution in other ways.

 

[anubhavsawhney]

I have started a partnership firm with trading of stocks & derivatives as primary business.
Please post journal accounting entries for following-
1.intraday trade for stocks(& nature of profit or loss)
2.intrday trade for futures & options((& nature of profit or loss)
3.positional trade for stock(delivery)
4.postional trade for futures & options.

Thanks

anubhav

 

[diosys]

Its not that I thought of it. Somewhere here on traderji there was this detailed thread with comments by quite a few seniors telling that is not possible. I am not able to locate it. That thread had an argument saying that Shankar Sharma of MF Global fame took two opposite positions in 2 accounts,etc gor prosecuted...Okay that person said more than 1 account. he did not say it was only in his name.
Many members here trade in their say wife's account etc, or in a joint account for this reason, so you understand my point.

Joint account is allowed to be made and the assessment would be done in the hands of the first holder OR can be evenly also BUT whatever the policy which is adopted should always be continued.

In my personal opinion i treat the first holder as the main holder and income is assesseed in his or her hand.

AND yes one person is not allowed to have two demats.

 

[diosys]

I have started a partnership firm with trading of stocks & derivatives as primary business.
Please post journal accounting entries for following-
1.intraday trade for stocks(& nature of profit or loss)
2.intrday trade for futures & options((& nature of profit or loss)
3.positional trade for stock(delivery)
4.postional trade for futures & options.

Thanks

anubhav

Have already done the same in the thread....check or search