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

[torontoguy]

The turnover in the instant case would be 7,500 (your profit...)...

Please note that Profit or loss both have to be added to determine the total turnover....

Thanks Diosys

And what about the future stock rather than options??

like If I am taking Nifty of rs. 5600*50=280000 then I am giving only 10% ( 28000) to my broker for trading in nifty in this case also my turnover will be 28000/-

or it will be 280000/- ?
Turnover Come in one Side only? Like in buy side only? or from both side

like 28000 in buy side
and 30000 in sell side

and total turnover 58,000?

or

28,000+2000 Profit = 30,000/-only


Thanks Again

 

[Rajagopals]

Dear Raj thank you very much for your concern...

Yes FIFO is to be followed....But that would include the date from your original holding and not from the dematerlised date....So don't worry...

Dear Diosys:

Glad to see you back with your clear responses.

Thanks for your reply to my query. Shall bother you with some more, after 1st Nov.

Meantime, short breaks apart, do try and keep the site alive. I see that most people here seek and find a lot of guidance. Over a period of time, the thread may serve as an Investors' reference guide for "Everything You Always Wanted To Know About TAX; But Were Afraid To Ask"!

Have a great week-end!

Regards

RAJ

 

[su203]

Dear Moneypick...

In the case of Bonus Shares the cost of accusation of the bonus shares would be nil.....yes nil....Hence whatever the amount you sell would be capital gains.....Sec 55(2)(aa)(iiia) of the Income Tax Act 1961....

BUT the price of the original shares would be what it was bought for...

Continuing your eg....

1000 original shares @ 30 if suppose sold at Rs. 50 then capital gain is (50-20)*1000 = Rs. 20,000

1000 bonus shares the capital gain = Rs. 50,000

Total capital gain Rs. 70,000

Dear Diosys, Could you once again check and confirm this. What my Chartered Accountant told me was that this clause has been amended by the IT dept. and now in case you sell your original shares soon after you get the bonus shares, the loss booked by you will be treated as the acquisition price of your bonus share. Please can you check and confirm this once again. Thanks

 

[su203]

Dear Diosys, Could you once again check and confirm this. What my Chartered Accountant told me was that this clause has been amended by the IT dept. and now in case you sell your original shares soon after you get the bonus shares, the loss booked by you will be treated as the acquisition price of your bonus share. Please can you check and confirm this once again. Thanks

In my last tax return, i off set the short term capital gains by adjusting against the loss incurred by me by selling the shares against which i have receivied bonus. My Chartered Accountant said that this is not allowed because of the amendments made and I had to revise my return and pay 10% STCG tax on the profits made by me. This is the reason I am requesting you to confirm this.

 

[su203]

dear sir, (diosys or whoever that can answer to my question)

first of all i would like to thank you for starting this thread. we have a demat account in my wife's name. she also has a pan card. i am a nri and send money regularly into my non-resident state bank of india account, in which my wife is also a joint account holder. we have invested almost rs 5 lakhs into various stocks over a year ago basically we are long term investors.

1. i would just like to know if there is a problem investing such an amount, and would like to inform you that the payment for this amount has been from my non-resident sbi account to the broker for buying the stocks.

2. also would like to know how i would be taxed, i mean at what rate?
thank you in advance

shifazaid

[/I]

Dear Shifazaid,

I really would like to know how you could open an NRI(External) Rupee account with your resident wife as Joint account holder. Even I tried to do this but my banker said that an resident individual cannot be a joint account holder in a NRE account. Your reply could help me to take up this matter with the bankers.

 

[su203]

Thanks Diosys

And what about the future stock rather than options??

like If I am taking Nifty of rs. 5600*50=280000 then I am giving only 10% ( 28000) to my broker for trading in nifty in this case also my turnover will be 28000/-

or it will be 280000/- ?
Turnover Come in one Side only? Like in buy side only? or from both side

like 28000 in buy side
and 30000 in sell side

and total turnover 58,000?


or

28,000+2000 Profit = 30,000/-only


Thanks Again

Dear, Diosys has many times made it clear in this thread that the turn over is the profits and losses added together. To make it clear to you, say in one transaction you make a profit of Rs. 20000/- and in another transaction you make a loss of Rs. 15000/-. In this case, your total turnover will be Rs. 35000/-. The turnover has nothing to do with the total value of the shares purchased or sold by you which could be in crores. It is the profits or losses added to gether which amounts to your turn over. Diosys has made it amply clear in many of his previous post and you are still asking him the same question again and again. Why don't you save your as well as diosys time by reading carefully his previous posts.

 

[Saint]

HI boarders....

I am extremely sorry to have vanished without a trace...Actually i am too busy with my work these days and would be so till 31st October....Would reply to all your queries after the said date.....And i also wish to thank the boarders who were concerned when i was not available....

In the meanwhile Torontoguy is really in need of help hence i am replying to his queries...Rest i would take up post 31st October, 2007.

1st Query of Toronto....

There would be no tax liability till you cross the minimum threshold limit as applicable to the gender you are looking for....So no tax relating to your above query...

Hope 2 have this thread back in action,Diosys....

Saint

 

[kuriako]

Will I be taxed for the 'intraday trades'(speculative income-30%) if I am making profit below 1.2 lakh limit in a year?

Can I set off my losses against my profits?

 

[sam1233]

Dear diosys,
Thank you for giving such analytical replies. your service is greatly appreciated.

I have Question:
I am an NRI and my Mom has residential account in India and she has demat and online trading account also(3in 1) I am sending money to my NRE account and from there I am transfering to her residential bank account and then she trades from her account.

My mom is a retired person and she gets only pension as income. Now I have given her lot of money from my NRE account for her stock trading and investing. In future I am going to get the money from her when I return back to India.

Now how would be the tax charged for her? and how much tax I have to pay when I get it from her back to my residential or NRO account, the profit and money? Most of her trading money is from my NRE account. Naturally I will get from her back. Please advise me what is the best way to avoid taxes.

Thank you in advance
sincerly
sam

 

[J_D]

Hello Diosys,


Pls clarify how to maintain the books of account and is there any format for the same? Is it not enough to take a printout provided by the broker for the trades done in a accounting year and submit ?

Also pls clarify what is meant by tax audit ?

My understanding is that it is the calculation of the tax incidence for the trades done by an assessee in an accounting year duly verified by the Chartered accountant. so if one assessee crosses the turnover limit of 40 lacs in an accounting year he cant submit returns on his own but submit it with the chapa from an auditor. Is my understanding right?

John