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

[diosys]

sir,

i trade in F&O , please guide what shall constitute purchase/sales as far as page 4 of ITIR4 goes. If we take the enitre purchase/sales than it may go above 40 lakhs,but for audit purposes we toatl plus/minus which is below 5 lakhs. how to write figure in page 4 of itr 4

Dear Iris,

your second opinion is correct (aggregate of Profit and loss)....Write purchase as 0 and the profit figure in the sale column.....

 

[diosys]

For trading in F&O, the limit of 40 lacs is the profit or loss in absolute terms. This means that if you have 100 profitable transactions with total profit of Rs 5 lacs, and 50 loss making transactions with total loss of Rs. 3 lacs. Then the total of profit and loss in absolute terms is only 8 lacs, and hence there is no requirement of an audit.

Dio please correct me if I am wrong.

Cheers,
Kapil

Absolutely correct Kapil....

 

[diosys]

Dear Diosys,

I and my wife hold a joint bank account wherein all the transaction where done by my wife with her own capital in her own name while I was using my seperate bank account for my transactions.

Once, we made a mistake and bought money market cash fund in my name from this joint bank a/c.

While filing the return, we missed that mistake and that entry was shown in her return.

Now, I am being asked why the same MF though purchased in my name is not reflected in my return.

Can you suggest a way out and how can I convince that my wife's return does show that entry and it was a genuine mistake on our part. The interest earned from this transaction is insignificant and hence doesn't make much difference to our tax liability.

Regards,

rajfal

I am commenting to you without seeing your details of return filing history ...

First of all please inform for which FY are you talking about and when were this return filed...

Secondly who is asking you....Income tax Office ??? under which section 143(2) notice ???

without this i would not be able to comment what to do....

In anycase submit to the ITO that it is bonafide mistake and we be allowed to revise the return so as to rectify the error...most probably it should be allowed as this transaction was not missed only booked in the wrong books....

 

[solacefanatic1]

Is latest cii(cost inflation index no.) is declared?

It was lastly 551(i think).

where to track this at RBI's site or IT site

regards
sf

 

[diosys]

Is latest cii(cost inflation index no.) is declared?

It was lastly 551(i think).

where to track this at RBI's site or IT site

regards
sf

The latest cost inflation index for FY 2007-08 is 551 as stated by you....not for 2008-09

 

[RAJASHREE]

I have incurred losses in F&O segment and want to know the treatment of the same while filing the return. can i omit the above loss and just file a ITR 1 for my salary income.

 

[diosys]

I have incurred losses in F&O segment and want to know the treatment of the same while filing the return. can i omit the above loss and just file a ITR 1 for my salary income.

Dont even think of doing it.....

File ITR 4 and carry forward the business loss...

 

[RAJASHREE]

I have incurred losses in F&O segment and want to know the treatment of the same while filing the return. can i omit the above loss and just file a ITR 1 for my salary income. i.am not a regular investor . can the above loss be setoff against salary income

 

[diosys]

I have incurred losses in F&O segment and want to know the treatment of the same while filing the return. can i omit the above loss and just file a ITR 1 for my salary income. i.am not a regular investor . can the above loss be setoff against salary income

Dear Raj,

Earlier such set off was allowed but unfortunately this has been discontinued from previous FY. Hence the only option available with you is to carry forward the same and set off with the profits if any of the next year....

I would certainly not suggest that you not file your return or omit the said loss.....DO NOT DO THAT !!!

 

[RAJASHREE]

Can i treat the F&O loss as short term capital loss and file itr 2 as i'am not going to trade in shares or F&O in future