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

[shravank30]

Can one demat account show both:

FnO -Business Income

and

LTCG from Holding Equity for 1 plus years.

For FnO there is no requirement of demat account

I presume you meant trading account with the broker.
Its possible to show the shares you hold as investment and claim LTCG at 0% tax even if you trade in the same id with your broker in both FnO & Equity.
While filing return you have to show the stocks you hold as investment and not as stock in trade

 

[blackberry]

Any short term profit under equity mutual fund and short and long term profit under debt mutual fund is taxable.Is this profit added in income or taxable even if profit is of Re 1

 

[shravank30]

Any short term profit under equity mutual fund and short and long term profit under debt mutual fund is taxable.Is this profit added in income or taxable even if profit is of Re 1

There is no STT levied on Debt mutual funds so short term profits in debt mutual funds will be added to your income and taxed according to the slab
For long term profit in Debt mutual fund you pay tax @ 20% after indexation or 10% without indexation on the profits
As STT is levied on Equity mutual funds sale, you will be taxed@15% for STCG and 0% for LTCG

 

[kinguncle]

Please help me with this query.

I need to know if the Profit earned from dealing in Futures and Options is considered as Speculative profit or normal Business profit.

Is there any specific rule number or reference to law which can be quoted to prove this?

Also what is the tax rate for Speculative profit and Normal Business profit.

Thanks a lot, am asking this bec my CA is insisting that I pay 30.9% for the profits I earned in F&O

 

[jamit_05]

Please help me with this query.

I need to know if the Profit earned from dealing in Futures and Options is considered as Speculative profit or normal Business profit.

Is there any specific rule number or reference to law which can be quoted to prove this?

Also what is the tax rate for Speculative profit and Normal Business profit.

Thanks a lot, am asking this bec my CA is insisting that I pay 30.9% for the profits I earned in F&O

From what I hv read on this thread.... FnO profit is business profit and is liable to tax rate as per your bracket.

 

[kinguncle]

From what I hv read on this thread.... FnO profit is business profit and is liable to tax rate as per your bracket.

Thanks for the reply.
However, even the business income is charged at 30% straightaway. Is that correct?
My income from F&O trading was around 1.5 lakh only. Now I am telling my CA that this comes in the first bracket hence I shd not pay any tax on it.
But he says that business income is taxed at 30% and hence I need to pay around 50k as tax.

Can you or anyone else guide me as to what is the correct thing.

Thank you in advance

 

[a1b1trader]

Do you have any other income besides this F&O income, even otherwise Amit is right.

If not or even otherwise, it will be the best course to change the CA. :lol:
Many CAs know nothing about F&O treatment or their knowledge is limited.

 

[jamit_05]

Thanks for the reply.
However, even the business income is charged at 30% straightaway. Is that correct?
My income from F&O trading was around 1.5 lakh only. Now I am telling my CA that this comes in the first bracket hence I shd not pay any tax on it.
But he says that business income is taxed at 30% and hence I need to pay around 50k as tax.

Can you or anyone else guide me as to what is the correct thing.

Thank you in advance

Ridiculous.

If aam-junta was charged 50K tax on 1.5L income then there'd be an uprising!

A proper CA would instead advice you to include some expenses to further reduce the profit and hence the tax... this guy is going ultaa.... CA hai ki hajaam !!

As far as I know All incomes are taxed as per bracket. Consult another CA. There is this taxmantra.com seems nice. I've not tried.

 

[kinguncle]

Ridiculous.

If aam-junta was charged 50K tax on 1.5L income then there'd be an uprising!

A proper CA would instead advice you to include some expenses to further reduce the profit and hence the tax... this guy is going ultaa.... CA hai ki hajaam !!

As far as I know All incomes are taxed as per bracket. Consult another CA. There is this taxmantra.com seems nice. I've not tried.

Do you have any other income besides this F&O income, even otherwise Amit is right.

If not or even otherwise, it will be the best course to change the CA. :lol:
Many CAs know nothing about F&O treatment or their knowledge is limited.

Thanks to both of you.
The problem is the he seems to be the better one among the 2-3 I contacted.
Now when I talk to him, he tells me that business income doesnt have tax slabs etc.
I am thoroughly confused. Has anyone paid taxes on F&O income here, and at what rate?

 

[jamit_05]

Thanks to both of you.
The problem is the he seems to be the better one among the 2-3 I contacted.
Now when I talk to him, he tells me that business income doesnt have tax slabs etc.
I am thoroughly confused. Has anyone paid taxes on F&O income here, and at what rate?

contact taxmantra... and talk to them on phone...