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

[lazytrader]

Dear,

There cannot be two STCG. There is one STCG and that is only for the Investor and not the trader. A trader cannot fall under STCG and he has to be assessed under the business income only.

your second para is correct. Except the notice by the ITO would be for assessment under business income and not STCG since there is a seperate assessment procedure for STCG.

All this has confused me again.

Just for clarification:

A. For an individual, a investor who makes a few trades a yr then you file for CG
1. Short term 15% tax and long term (over 1yr holding) tax exempt
2. divident - tax exempt
3. Trading costs can be deducted from taxable income (stamp duty/taxes/brkg)

B. For an individual, an intraday/swing trader making several trades a yr then you file under Business head
1. Here we are taxes according to the tax slabs of 1.5=0%, 1.5-2.5=10%, etc...
2. Business expenses such at internet connection, electicity are deductable
3. No need to close open stock positions (I don't know what it is called, done to offset profits vs losses. I hope you get it)

Am I right regarding the above?

 

[diosys]

Dear diosys,
Can you give how we enter funds which wired to uk as LRS scheme(in this scheme we able to transfer max 2lac us$ in an finance year) in our tax returns?if the fund returned to india with some profits then how we enter it inour tax return...Hope am asked the querry properly!

Since you are an resident of India hence your global income would be taxable in India. Therefore it is simple as this would be capital gain and the difference between the amount invested and the amount received back.

 

[diosys]

All this has confused me again.

Just for clarification:

A. For an individual, a investor who makes a few trades a yr then you file for CG
1. Short term 15% tax and long term (over 1yr holding) tax exempt
2. divident - tax exempt
3. Trading costs can be deducted from taxable income (stamp duty/taxes/brkg)

B. For an individual, an intraday/swing trader making several trades a yr then you file under Business head
1. Here we are taxes according to the tax slabs of 1.5=0%, 1.5-2.5=10%, etc...
2. Business expenses such at internet connection, electicity are deductable
3. No need to close open stock positions (I don't know what it is called, done to offset profits vs losses. I hope you get it)

Am I right regarding the above?

Everything is perfectly stated by you....

BUT there is a third option also !!!

One who is an investor and a trader....A person can hold two portfolios...One which is long term and one which is for trading.

 

[magnet]

Everything is perfectly stated by you....

BUT there is a third option also !!!

One who is an investor and a trader....A person can hold two portfolios...One which is long term and one which is for trading.

Can a person have 2 account in same branch.........i mean 2 portfolio same bank/brach/broker...or it might cause problem of confusion

 

[diosys]

Can a person has 2 account in same branch.........i mean 2 portfolio same bank/brach/broker...or it might cause problem of confusion

There is some restriction on that front by SEBI but not by Income tax. I personally have two Demats in order to seperate my investment portfolio from trading portfolio.

 

[lazytrader]

I haven't filed income tax myself, since I am salaried it happens from the company.

Now if I file tax under business head and my total turnover is not more than a couple of lakhs while filing income tax what documents would I have to submit?

 

[diosys]

I haven't filed income tax myself, since I am salaried it happens from the company.

Now if I file tax under business head and my total turnover is not more than a couple of lakhs while filing income tax what documents would I have to submit?

absoltely nothing....meaning NOTHING !!! except your Income tax Return.

 

[arnav_rulz]

say i have a long term holding of XYZ company listed on Bse. Right now i am in loss in that stock and i want to sell it..

So since long term capital gain is exempt and one cannot set off gains against loss which are exempt.. thus can i sell these shares outside the stock market.. as in just transfer it to my friend at the prevailing price without paying S.T.T and book a long term loss which can be set off later ??

I thought of this idea sometime back.. Is it valid ?? Do ppl use it ? If not then y not :O

 

[pnshare]

what are the option of investment to save tax on upper bracket like 80G and mediclaim etc.

 

[diosys]

say i have a long term holding of XYZ company listed on Bse. Right now i am in loss in that stock and i want to sell it..

So since long term capital gain is exempt and one cannot set off gains against loss which are exempt.. thus can i sell these shares outside the stock market.. as in just transfer it to my friend at the prevailing price without paying S.T.T and book a long term loss which can be set off later ??

I thought of this idea sometime back.. Is it valid ?? Do ppl use it ? If not then y not :O

LTCG loss can be carried forward and sett off against Long Term Gain Only. So if you are having a long term capital TAXABLE gain then only this format given by you would be of any benefit.