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

[diosys]

hello,
i am a salaried person with income more than 5 lakhs.
i day trade in f&o segment and am earning around 2 to 5000 daily.
is this income added to the total income and taxed 30%,or it will be separate
and taxed at 10%.also total income per year from this is the arithmatic sum of profit and losses or only profits are counted.presently i am filing the tax only on my salary, is it an offence.
thanks

Yes ajit.....this is a grave offense which you are committing....I would sincerly advice you to deter you from doing such a thing...

Further, income from F O would be taxable as business income and the rate is not flat 30%....It depends in which tax bracket you fall in...Which can only be determined after you compute all your income for the year....

Again i would like to repeat DO NOT TAKE THE ROUTE OF NOT DISCLOSING INCOME and that too which is very well documented against your PAN....

 

[vinay8483]

yeah very true..

I thought of getting some tips from you online during trading hours
thanks a lot for your guidance.
I have one more question..say if i open my mothers trading account and trade using that and make a income say less than 1.55 lacs per annum.
Now do my mother need to pay any tax on this income since it is under the taxable limit.Also can i have separate account for F&O and cash delivery.
and if income exceeds 1.55 does the tax calculated as per normal tax brackets(considering trading in F&O).My mother doesn't earn she is a pensioner.
thanks in advance

 

[diosys]

yeah very true..

I thought of getting some tips from you online during trading hours
thanks a lot for your guidance.
I have one more question..say if i open my mothers trading account and trade using that and make a income say less than 1.55 lacs per annum.
Now do my mother need to pay any tax on this income since it is under the taxable limit.Also can i have separate account for F&O and cash delivery.
and if income exceeds 1.55 does the tax calculated as per normal tax brackets(considering trading in F&O).My mother doesn't earn she is a pensioner.
thanks in advance

Yup the same can be done to substantially reduce the tax liability.

 

[addadutta]

Re: Booking loss on mutual funds

Hi,
I have SIP with DSP mutual fund. The fund is more than one year old. I want to redeem the fund.
The original deposited anout is 2 lakhs for which current NAV is about 1.3 lakhs.
Can I book loss for 0.7 lakhs a nd if so, under which heading?

Regards,

Adda

 

[lvgandhi]

In futures trading, if contract is held overnight, brokers sent bill daily indicating M2M as debit/credit. For accounting purposes if these are taken, it will inflate the turnover value than actual profit/loss due to buy and sell transaction of that contract. For calculating turnover, whether daily amount is to be taken or difference of buy and sell transaction of that contract is to be taken.

 

[diosys]

Re: Booking loss on mutual funds

Hi,
I have SIP with DSP mutual fund. The fund is more than one year old. I want to redeem the fund.
The original deposited anout is 2 lakhs for which current NAV is about 1.3 lakhs.
Can I book loss for 0.7 lakhs a nd if so, under which heading?

Regards,

Adda

It would be simply Short term Capital gain and any income under the same head can be set off with this loss

 

[diosys]

In futures trading, if contract is held overnight, brokers sent bill daily indicating M2M as debit/credit. For accounting purposes if these are taken, it will inflate the turnover value than actual profit/loss due to buy and sell transaction of that contract. For calculating turnover, whether daily amount is to be taken or difference of buy and sell transaction of that contract is to be taken.

for turnover purposes only the aggregate of profit and loss is required to be taken....not the MTM....

for a detailed study as to how to account for F & O please refer to Institute of Chartered Accountants guidance note on F & O.....A very detailed methodology of account keeping has been mentioned...

 

[vipinenator]

what is the total amount of tax paid in india for day trader except.short term capital gain tax 4 each trade.?
if i made a profit of 100 rs. then what would be toatl amount of tax .
please tell me how much is service tax.what are turn over charges.and stamp duty.
do i need to pay service tax for each trade.?

 

[diosys]

what is the total amount of tax paid in india for day trader except.short term capital gain tax 4 each trade.?
if i made a profit of 100 rs. then what would be toatl amount of tax .
please tell me how much is service tax.what are turn over charges.and stamp duty.
do i need to pay service tax for each trade.?

there is no seprate cpaital gain for each transaction. It is for the entire year...

Apart from that there are several taxes.....which is useless to get into the details....

Plus service tax which is required to be paid is collected from you...no need to pay it seperately...

 

[dhan_trading]

hello sir ,
I have joined this forum just now.I m an Employeein a reputed firm.I m just a trainee now.But i wanna know how the tax is calculated,how it affects our investment and how should we reduce it if is possible.
Do reply whenever u r free.
thank you.