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

[diosys]

Hi diosys,
I have gone through the queries and responses above but still my doubt prevails. I am sorry to ask you again.

I am trading in Options(F&O) daily and making good profits. What is the rate at which these income will be taxed? Do I need to keep auditor for audinting my accounts? or do i simply when I file my returns through Tax consultant, mention the profits and Tax can be calculated? Is there any relaxation for the females? is there any slabs on which the income is taxed?

Thanks in advance

Dear Kripal,

You have asked soooo many questions which i have already answered earlier....

1.) There is no fixed rate of taxation for income from F&O . depends on other income.

2.) Auditor is required when the turnover crosses 40 lacs in a Financial year...

3.) If point 2 is met then an auditor report is required otherwise anyone can file your ITR.

4.) Females generally have a 3.5% less taxation than males. That your tax consultant should be able to inform you.

5.) There are many slabs according to which taxation is done....
MALE
1-150000 - Tax Nil
150000-300000 - Tax 10%
300000-500000 - Tax 20%
above 500000 - Tax 30%

 

[WOD]

Hi Diosys,

First of all, accept my many thanks for the job you are doing here...absolutely great thing done by you....

I have some queries related to tax implications:

1. Suppose my Rs. X is taxable income and I am transfering this Rs. X to my parents account through check as a gift to them.....Then will I have to pay tax on Rs. X.....According to my understanding I dont have to pay tax on to this Rs. X....Please comment on my understanding....

2. Suppose my Rs. X is taxable income and I am buying tax-saver mutual fund worth Rs. X, then will I have to pay tax on this Rs. X......again According to my understanding I dont have to pay tax on to this Rs. X....Please comment on my understanding....

3. Suppose I have equity holdings and currently my income is not taxable.....But now a situation arises according to which value of equity holdings increases to a taxable extent....Considering that I will not be booking profit on to this equity holding in same financial year...will I still have to pay tax on to amount of profit I have got through equity holding which is a taxable amount....

4.Suppose I have paid tax on short term capital gain through profit on shares...after paying such a tax my taxable income is Rs. X (including the short term capital gain minus 10% tax paid on capital gain)......Will I have to pay tax on this gross income or at this point of time my short term capital gain will not be included to compute my tax liabilities as I have already paid tax on such a income....

I hope I am clear enough while putting my queries....

Awaiting here for your valueble guidence

Thanks,
WOD....

 

[user3456]

I am new to the forum and trying to understand more day trding. This frum looks like very informative. Thank you to all of you who are posting the elies and information.
t

 

[csethna]

Hi,
I want to open a online forex trading acc. with etoro.How do I account for my profits, which I will be depositing in indian banks,when I file tax returns.

 

[diosys]

Hi Diosys,

First of all, accept my many thanks for the job you are doing here...absolutely great thing done by you....

I have some queries related to tax implications:

1. Suppose my Rs. X is taxable income and I am transfering this Rs. X to my parents account through check as a gift to them.....Then will I have to pay tax on Rs. X.....According to my understanding I dont have to pay tax on to this Rs. X....Please comment on my understanding....

2. Suppose my Rs. X is taxable income and I am buying tax-saver mutual fund worth Rs. X, then will I have to pay tax on this Rs. X......again According to my understanding I dont have to pay tax on to this Rs. X....Please comment on my understanding....

3. Suppose I have equity holdings and currently my income is not taxable.....But now a situation arises according to which value of equity holdings increases to a taxable extent....Considering that I will not be booking profit on to this equity holding in same financial year...will I still have to pay tax on to amount of profit I have got through equity holding which is a taxable amount....

4.Suppose I have paid tax on short term capital gain through profit on shares...after paying such a tax my taxable income is Rs. X (including the short term capital gain minus 10% tax paid on capital gain)......Will I have to pay tax on this gross income or at this point of time my short term capital gain will not be included to compute my tax liabilities as I have already paid tax on such a income....

I hope I am clear enough while putting my queries....

Awaiting here for your valueble guidence

Thanks,
WOD....

Dear Wod,

Thank you for the appreciation.

ans 1.) Income has already been incurred in your hand hence you would have to pay tax on it....It does not matter you transfer it as a gift or not...Though your parents would not be required to pay tax on the same as it would be exempt income for them.

ans 2.) Yes, after deducting the investment of Rs. invested would the tax liability would be determined....Please check my previous posts to get an indepth knowledge of how to calculate the same.

ans 3.) Tax is payable when profit is realized and not when the value goes up.. So the answer is negative for this question.

ans 4.) This again would be answered in few of my earlier posts in detail...Please refer to them. In short tax liability is determined seeing the entire income and not parts of it.

 

[diosys]

Hi,
I want to open a online forex trading acc. with etoro.How do I account for my profits, which I will be depositing in indian banks,when I file tax returns.

Dear,

Accounting books are required to be maintained under Indian income tax law. Hence hire an accountant in India who can do the same for you....

 

[praveen taneja]

Dear,

Accounting books are required to be maintained under Indian income tax law. Hence hire an accountant in India who can do the same for you....

Bro want to know one thing as u in prior reply told that above 40 lac turnover one need auditor
1).is that on stock mkt too???
2). like if i sell one lost of NIFTY that means 150000n cover then whole transction amount to 3 lac so after 15 such trade do i need auditor???
Thnx in advance

 

[TFL]

Dear diosys,

Thanks your for your effort to answer each and every question. I always look in this thread daily.

I have some doubts regarding the taxes relating to NRIs, hope it will help other readers too.

1. How much is the tax % of interest income of deposits under NRO accounts.
2. How much is the tax % of interest income of deposits under NRE accounts.
3. How much is the tax % of interest income of deposits under FCNR accounts.

4. Do I need to pay tax for "short" term capital gain if I am trading shares under PIS (PINS) account. Whats the rate of tax?

5. 4. Do I need to pay tax for "long" term capital gain if I am trading shares under PIS (PINS) account. Whats the rate of tax?

6. Do I need to pay tax for short term capital gain if I am trading derivatives under PIS (PINS) account.

7. Is it compulsory for an NRI to state short/long term capital gain for derivatives trading as business income like a non NRI? Is there any difference in tax?

Thank you,
Haribird.

 

[WOD]

Dear Wod,

Thank you for the appreciation.

ans 1.) Income has already been incurred in your hand hence you would have to pay tax on it....It does not matter you transfer it as a gift or not...Though your parents would not be required to pay tax on the same as it would be exempt income for them.

ans 2.) Yes, after deducting the investment of Rs. invested would the tax liability would be determined....Please check my previous posts to get an indepth knowledge of how to calculate the same.

ans 3.) Tax is payable when profit is realized and not when the value goes up.. So the answer is negative for this question.

ans 4.) This again would be answered in few of my earlier posts in detail...Please refer to them. In short tax liability is determined seeing the entire income and not parts of it.

Thanks Diosys.
Information given by you is really helpful for me.
Happy and healthy new year for you and your family.

 

[diosys]

Bro want to know one thing as u in prior reply told that above 40 lac turnover one need auditor
1).is that on stock mkt too???
2). like if i sell one lost of NIFTY that means 150000n cover then whole transction amount to 3 lac so after 15 such trade do i need auditor???
Thnx in advance

Dear Praveen,

If you refer to earlier posts (numerous) i have explained that for F&O turnover is not the actual but the summation of Profit and loss....i.e. Add the profit and loss ...that becomes your turnover...