Fire your tax related queries and i would get it solved!!!
Only the loan and the interest thereon taken for home and education is allowed as a deduction....not those loan which are put into for income from capital gains.
but surely if you are a trader and claim your income from business and not capital gain then only the deduction be limited to INTEREST....and not the principal...
but surely if you are a trader and claim your income from business and not capital gain then only the deduction be limited to INTEREST....and not the principal...
Hello Diosys!
I have a query, hope u will like to answer.
I buy n sell stocks on short term basis, say buy it now & sell after 20 days. Trading is not my business, main source of income is salary. I want to ask about tax treatment applicable. Are the gains on such trading clubbed in my total income, n will attract normal tax slabs applicable?
Or a flat 15% STCG tax will be applicable on such profits?
Waiting 4 reply!
rm420
I have a query, hope u will like to answer.
I buy n sell stocks on short term basis, say buy it now & sell after 20 days. Trading is not my business, main source of income is salary. I want to ask about tax treatment applicable. Are the gains on such trading clubbed in my total income, n will attract normal tax slabs applicable?
Or a flat 15% STCG tax will be applicable on such profits?
Waiting 4 reply!
rm420
I am replying to you assuming that there are no intraday transactions done by you AND such frequency of transactions (as told by you) is maybe between 10 to 15 in a year....
If above two conditions hold true then file in STCG...
THOUGH LET ME CLARIFY THAT STILL IT WOULD DEPEND UPON THE ASSESSING OFFICER AND YOUR LEGAL CONSULTANT WHERE IT GETS TAXED...business income or capital gain...
there is no set guidlelines wherein it can be determined whether the person is a trader or an investor.....
If above two conditions hold true then file in STCG...
THOUGH LET ME CLARIFY THAT STILL IT WOULD DEPEND UPON THE ASSESSING OFFICER AND YOUR LEGAL CONSULTANT WHERE IT GETS TAXED...business income or capital gain...
there is no set guidlelines wherein it can be determined whether the person is a trader or an investor.....
hi diosys
i want to clarify following points to u according to my knowledge .pls.rectify if i am wrong
as a trader and income shown as bsn.income
1..day trading in cash market considered as speculative income and its p/l can be adjusted with p/l of same group not with bsn.income and loss can be carried forward for next 4yrs.Turnover calculation same as f&o .its profit is added with other bsn.incomes to get the total income of the individual.
2.positional trading or short term trading in cash market considered as bsn. income but what about is its turnover- is it its sell figuire ?suppose one buy share worth 1lakh and after 3days sell with a value of rs. 130000.is then rs.130000 will be taken for turnover consideration.i fear then 40lakhs. for audit will be touched easily.
3.for option turnover consideration is it normal profit and loss or option premium also to consider.what is meant by premium earned by option selling also to consider....
4.one different issue i also request u to clarify - i have a share of a bluechip for last 8years and till i have not demateralized it and which i had not shown in my IT FILE .now if i bringh it in my demat and sell it ,will i get the benefit of no tax as long term investment?isthere any provision of penalty for not showing in IT FILE as is told by my tax consultant.
pls. reply me soon.
raja
i want to clarify following points to u according to my knowledge .pls.rectify if i am wrong
as a trader and income shown as bsn.income
1..day trading in cash market considered as speculative income and its p/l can be adjusted with p/l of same group not with bsn.income and loss can be carried forward for next 4yrs.Turnover calculation same as f&o .its profit is added with other bsn.incomes to get the total income of the individual.
2.positional trading or short term trading in cash market considered as bsn. income but what about is its turnover- is it its sell figuire ?suppose one buy share worth 1lakh and after 3days sell with a value of rs. 130000.is then rs.130000 will be taken for turnover consideration.i fear then 40lakhs. for audit will be touched easily.
3.for option turnover consideration is it normal profit and loss or option premium also to consider.what is meant by premium earned by option selling also to consider....
4.one different issue i also request u to clarify - i have a share of a bluechip for last 8years and till i have not demateralized it and which i had not shown in my IT FILE .now if i bringh it in my demat and sell it ,will i get the benefit of no tax as long term investment?isthere any provision of penalty for not showing in IT FILE as is told by my tax consultant.
pls. reply me soon.
raja
Your understanding of question 1 and 2 are absolutely correct.....If the audit is there then it needs to be done....cant help it.
For option thing the amount of premium you earned while selling the option is the your sale price....4500 Call sold at 20 then the sale value is 20 * 50 (lot size)....
The fourth one is a bit tricky...The long term you can avail as while being sold the assessee must have paid STT (which you would always pay once these are sold on exchanges after dematerilisng them)... Question is of not declaring them in your previous balance sheets...
Before that tell me one thing....Is it that you drew your balance sheet every year and submitted alongwith your return or was it not done ???
Because if you did then it would be problem otherwise we might have some ray of hope left....
For option thing the amount of premium you earned while selling the option is the your sale price....4500 Call sold at 20 then the sale value is 20 * 50 (lot size)....
The fourth one is a bit tricky...The long term you can avail as while being sold the assessee must have paid STT (which you would always pay once these are sold on exchanges after dematerilisng them)... Question is of not declaring them in your previous balance sheets...
Before that tell me one thing....Is it that you drew your balance sheet every year and submitted alongwith your return or was it not done ???
Because if you did then it would be problem otherwise we might have some ray of hope left....
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