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

[Happy_Singh]

I'm salaried and had some loss in futures trading but did not mention it in itr. is it a problem for me?

Me too...

If you intend to carry forward your loss in your balance sheet, you need to mention it and hence get an audit done.

If loss is not huge and you can justify it with income source/cash flow, then don't worry.

Its funny though, why do people sitting over a loss of few lakhs of rupees
crib about paying 12/15-20 K to maintain proper accounts and get an audit done.
When doing so will give them a big benefit on taxes from future income also peace of mind.


Happy

 

[Square]

What I understand from a CA friend is scrutiny selection is based on computer programme and certain criteria is feed to determine such cases. The criteria may be modified from year to year. One such is AIR (annual information report) the criteria for this is in public domain. However for derivative transaction the criteria is not known (atleast to me). So if one can keep the transaction or trade volume within such limits then it will not be picked by the computer. I think this may be one way to not get into the IT scrutiny for retail traders.

 

[Square]

If anyone has details of threshold limits of derivatives volume or value, per trade or total trades etc then kindly share. Everyone will benefit.

Also if people who have got scrutiny notice can share their volume, total no of trades or trades per day etc then we can guesstimate the scrutiny criteria. The reasoning is what actually may look like concern to masses may actually affect only a few. So majority need not worry unnecessarily.

 

[ankur07090]

If you intend to carry forward your loss in your balance sheet, you need to mention it and hence get an audit done.

If loss is not huge and you can justify it with income source/cash flow, then don't worry.

Its funny though, why do people sitting over a loss of few lakhs of rupees
crib about paying 12/15-20 K to maintain proper accounts and get an audit done.
When doing so will give them a big benefit on taxes from future income also peace of mind.


Happy

:thumb:
Earlier I was not aware of these ITR and audit thing in trading. I always thought that all the taxes and brokerage already deducted so need not worry about taxes.
Now onward I am maintaining all the account books related to trading and for this financial year I will file the ITR.

But for loss/ profit how will it give relaxation in taxes... Any blog or reference will be helpful.

thanks

 

[nac]

But for loss/ profit how will it give relaxation in taxes... Any blog or reference will be helpful.

http://zerodha.com/varsity/module/markets-and-taxation/

 

[Happy_Singh]

But for loss/ profit how will it give relaxation in taxes... Any blog or reference will be helpful.

thanks

true for most of us its a learning process

Trading Loss can be carried forward to be offset against profits next few years

for F&O trading it is 8 Years and
for Cash intra it is 4 years


Happy

 

[tradertrader]

If you intend to carry forward your loss in your balance sheet, you need to mention it and hence get an audit done.

If loss is not huge and you can justify it with income source/cash flow, then don't worry.

Its funny though, why do people sitting over a loss of few lakhs of rupees
crib about paying 12/15-20 K to maintain proper accounts and get an audit done.
When doing so will give them a big benefit on taxes from future income also peace of mind.


Happy

Audit is to be done if your turnover cross the threshold limit. Nothing to do with loss. Yes you may not file return your wish. But if auditable turnover is touched and audit is required then better file return in time if you want to continue this business and offcorse in expectation of furture profit though many may not.

 

[canikhil]

If anyone has details of threshold limits of derivatives volume or value, per trade or total trades etc then kindly share. Everyone will benefit.

Also if people who have got scrutiny notice can share their volume, total no of trades or trades per day etc then we can guesstimate the scrutiny criteria. The reasoning is what actually may look like concern to masses may actually affect only a few. So majority need not worry unnecessarily.

You guys are wasting time on making speculations on this. Income-tax department doesn't even understand derivatives. They are just picking data from brokers and sending notices. For them the turnover is the gross value of contracts!. So don't bother about threshold limits etc. Be assured that sooner or later, anyone/everyone filing ITR-4 ends up with a tax notice.

 

[Happy_Singh]

Audit is to be done if your turnover cross the threshold limit. Nothing to do with loss. Yes you may not file return your wish. But if auditable turnover is touched and audit is required then better file return in time if you want to continue this business and offcorse in expectation of furture profit though many may not.

Even if your turnover is less (below the thresh hold)
Audit is necessary if you want to show a profit that is less than 8% of your turnover,
now less that 8% also means in case of Loss

Anyway enough of discussion on al this

Cheers :thumb:


Happy

 

[ankur07090]

Even if your turnover is less (below the thresh hold)
Audit is necessary if you want to show a profit that is less than 8% of your turnover,
now less that 8% also means in case of Loss

Anyway enough of discussion on al this

Cheers :thumb:


Happy

But that is not profit it's a loss...

Don't know much about these things.