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

[diosys]

Good to see you back Diosys and your website.

[A.1] Is it legal for an Indian to trade forex (I mean the EUR/USD like and not INR) ?
[A.2] Is it legal to transfer funds to paypal/wire to fund foreign broker a/c for forex ?
[A.3] Is it legal to get some USD in paypal from someone and pay him here in INR ? Will there be any tax issues ?
[A.4] Is the money earned through forex outside is taxable here (since we are not even get taxed outside india to this forex earnings) ?

[B.1] Is it legal for an NRI to trade forex (I mean the EUR/USD like and not INR).
[B.2] Can I(non-NRI) get funds like below for forex trading?
------------FATHERS NRE A/C -> HIS Credit Card -> HIS PAYPAL -> TO SON's PAYPAL -> TO MY BROKER -> PROFIT TO MY PAYPAL -> TO MY BANK
------------Is the whole amount taxable here? or only profits?
------------Will it comes under GIFT TAX (0 TAX) ?

Sorry for the dumping questions.

Sorry, would not be able to help you with regard to forex related questions...These are legal aspects (not taxation) hence better to consult the broker / bank....

Secondly for the transfer of funds from your father to you, it would be not taxable since it is a gift which is exempt. hence no problem on that front.

 

[stox_trader]

Sir i have a query.I did not file for my taxes last year and yesterday i received a email from it department stating the available tax credit for last year.
What do i do now,also i wanted to file both last year and this year tax next month,will i get permission and also how.
Please advice.Thanks

 

[diosys]

Sir i have a query.I did not file for my taxes last year and yesterday i received a email from it department stating the available tax credit for last year.
What do i do now,also i wanted to file both last year and this year tax next month,will i get permission and also how.
Please advice.Thanks

Dear Stox,

It is never too late to file your ITR. file it now....i believe if you are talking about FY 2006-07 then you still have time to submit.

Secondly, email from department is not a notice it is just an information. So go ahead and file your return and taxes....

 

[ManojChouhan]

Dear Diosys
I am a farmer. My total income is about 100000-110000.
1:- 18 yrs ago I deposited 40000 rs in my 3 month old daughter under Rajlakshmi scheem. this scheem was later changed into 'Children career Plan', Now She is major and got rs 215000 as maturity amount. What are her tax laibilities. the maturity amount is being credited in her bank a/c.
2:- I bought Kisan Vikas Patra of rs 35000 in 2001, matured this year. The maturity amount is 70000, till now I didn't filed tax return but now I am thinking to start trading so i have to file return from now on. Do I have to pay tax on the
(a) My Income + whole maturity amount
(b) My Income + whole Interest
(c) My Income + this year's Interest
Thanks in advance
manoj

 

[diosys]

Dear Diosys
I am a farmer. My total income is about 100000-110000.
1:- 18 yrs ago I deposited 40000 rs in my 3 month old daughter under Rajlakshmi scheem. this scheem was later changed into 'Children career Plan', Now She is major and got rs 215000 as maturity amount. What are her tax laibilities. the maturity amount is being credited in her bank a/c.
2:- I bought Kisan Vikas Patra of rs 35000 in 2001, matured this year. The maturity amount is 70000, till now I didn't filed tax return but now I am thinking to start trading so i have to file return from now on. Do I have to pay tax on the
(a) My Income + whole maturity amount
(b) My Income + whole Interest
(c) My Income + this year's Interest
Thanks in advance
manoj

Dear Manoj,

Insurance maturity is exempt from tax....and also maturity of Kisan Vikas Patra....So no need to worry for the taxation of the same.

Plus since your income is below taxable limit hence you need not pay any tax on it.

 

[TFL]

Diosys,

For accounting all my trading charges(F&O and delivery) and other expenses like Data Feed for trading charges(eg: e-signal ), telephone/electricity bills, office room rent do I need to register my firm as sole proprietorship or need no registration?

Can I deduct the expenses for buying additional computers and equipments ?

 

[diosys]

Diosys,

For accounting all my trading charges(F&O and delivery) and other expenses like Data Feed for trading charges(eg: e-signal ), telephone/electricity bills, office room rent do I need to register my firm as sole proprietorship or need no registration?

Can I deduct the expenses for buying additional computers and equipments ?

There is no registration requirement....

Deduction on account of buying capital assets is not allowed in one full year but depreciation is allowed each year upto 60% (in case if computer only) of the WDV.

For ef if you buy a computer on 05-04-08 for 100000 then the allowable expense to be deducted would be 60000, balance 40000 would carry over and next year you would be allowed 60% of 40000 and keeps on going till WDV becomes 0.

Plus the rate of depreciation is different for various categories of assets...

Computer - 60%
Mobile - 15%
Furniture - 10%
Office Equipments - 15%
Fan - 10%

etc etc.....

Thirdly assets purchased after 2nd October any fiscal year the depreciation rate available would be halved.

 

[TFL]

There is no registration requirement....

Deduction on account of buying capital assets is not allowed in one full year but depreciation is allowed each year upto 60% (in case if computer only) of the WDV.

For ef if you buy a computer on 05-04-08 for 100000 then the allowable expense to be deducted would be 60000, balance 40000 would carry over and next year you would be allowed 60% of 40000 and keeps on going till WDV becomes 0.

Plus the rate of depreciation is different for various categories of assets...

Computer - 60%
Mobile - 15%
Furniture - 10%
Office Equipments - 15%
Fan - 10%

etc etc.....

Thirdly assets purchased after 2nd October any fiscal year the depreciation rate available would be halved.

So what are the documentary proof I need to submit for these mobile, data feed expenses?

Can all my expenses place against the income from business(F&O Trading)?

Do I need to purchase/bill them under my firm or can all them under my name?

 

[TFL]

[Duplicate Post-Deleted]

 

[diosys]

So what are the documentary proof I need to submit for these mobile, data feed expenses?

Can all my expenses place against the income from business(F&O Trading)?

Do I need to purchase/bill them under my firm or can all them under my name?

Take bills in your name...or if in any trade name you operate in....

All these expenses would be against only business income and not capital gains.