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

[shravank30]

Hi

In which column and head of ITR 4 is F&O Profit entered ?

Thanks for advising

 

[jamit_05]

Actual Cost.

I have a question about taxation.

Following is the image which shows net cost per lot.

What part of this cost will be subtracted from my final tax amount?

I was told by someone, I vaguely remember, that STT is reduced from my tax amount since I have already paid that much tax to the government.

So for ex. at the end of financial year, if I get a final amount of Rs.1 lakh to be paid as tax, and If I have already paid Rs.25000 as STT as shown in the contract notes of the whole year then this Rs.25000 will be considered as IT paid... and I will have only Rs.75000 to be paid.

Is that correct?

 

[shravank30]

Re: Actual Cost.

I have a question about taxation.

Following is the image which shows net cost per lot.

What part of this cost will be subtracted from my final tax amount?

I was told by someone, I vaguely remember, that STT is reduced from my tax amount since I have already paid that much tax to the government.

So for ex. at the end of financial year, if I get a final amount of Rs.1 lakh to be paid as tax, and If I have already paid Rs.25000 as STT as shown in the contract notes of the whole year then this Rs.25000 will be considered as IT paid... and I will have only Rs.75000 to be paid.

Is that correct?

Only in the year that STT was introduced, it was possible to adjust the STT with your tax liability.
After that it is withdrawn and infact cannot even be considered as expense for determining the nett profit.
STT charges is directly debited to the balance sheet.

 

[Self Learnt Man]

Hi,

I had filed ITR 4 for the AY 2012-2013 and showed income from salary as well as trading in equity. I had losses in intra-day trading and mentioned negative amounts in Gross Profit (51b) and Net profit (51d) in Part PL in the form. Now I have got an intimation from the IT dept. saying my return is defective u/s 139(9).

They have mentioned the following error in the return:

Error Code: 14
'Assessee is entering negative amount in gross profit or net profit without giving details in Part B of P and L (in S. No. 51b and 51d)'

They have also mentioned that a probable resolution to this is:
'Assessee is required to furnish all the details in the Part B of Part A - P and L in the new xml which will be filed in response to this communication'


Could some one please help me understand what details I need to add to ITR 4 to rectify this. I have mentioned that I do not maintain books of account since my turnover is less than Rs. 10 lakhs.

 

[jamit_05]

Hi,

I had filed ITR 4 for the AY 2012-2013 and showed income from salary as well as trading in equity. I had losses in intra-day trading and mentioned negative amounts in Gross Profit (51b) and Net profit (51d) in Part PL in the form. Now I have got an intimation from the IT dept. saying my return is defective u/s 139(9).

They have mentioned the following error in the return:

Error Code: 14
'Assessee is entering negative amount in gross profit or net profit without giving details in Part B of P and L (in S. No. 51b and 51d)'

They have also mentioned that a probable resolution to this is:
'Assessee is required to furnish all the details in the Part B of Part A - P and L in the new xml which will be filed in response to this communication'


Could some one please help me understand what details I need to add to ITR 4 to rectify this. I have mentioned that I do not maintain books of account since my turnover is less than Rs. 10 lakhs.

They probably want to see the contract notes.

Moreover, the loss from intraday trading will not adjust against profit from other sources or even salary. It can only be adjusted against profit from trading.

 

[Self Learnt Man]

They probably want to see the contract notes.

Moreover, the loss from intraday trading will not adjust against profit from other sources or even salary. It can only be adjusted against profit from trading.

Thanks for your reply.

I have all the contract notes but I am not sure how i can submit them. The process mentioned in the rectification email only lets me upload the updated xml file. There is no provision to attach any documents.

Is there any 'Part B of Part A - P & L'? I can only see 'Part A of P & L' tab in the ITR form. It would be great to get an answer to this since I need to submit the updated form as soon as possible. Thanks.

 

[stockmaverick]

I object my Lord:
Cash intraday is speculation profit so please dont get mix it with business profit.:thumb:

Hi,
I guess cash intra-day means only buying/selling shares in cash. Right?
Does profit or loss from F&O trading come under speculative income? If no, then please help confirm that the resulting profit or loss can be squared off against other capital gains.

Thanks,
Nitin

 

[a1b1trader]

Hi friends

I want to know how the accounting for future trading and option trading is done as for income tax purpose. Do we have to maintain any account books also. Is there any threshold limit below which account books are not necessary.

Further it will be very helpful for we new traders, if someone please explain with an example, how the ITR4 is filled for income from derivative trading.

I understand that total of total profit + total loss is considered as total turnover for future trading. Is the same calculation also applied for options also.

Thanks

 

[a1b1trader]

Hi,
I guess cash intra-day means only buying/selling shares in cash. Right?
Does profit or loss from F&O trading come under speculative income? If no, then please help confirm that the resulting profit or loss can be squared off against other capital gains.

Thanks,
Nitin

Hi Nitin

Do not get confused in two types of trading, one cash intraday and two derivative trading (F&O trading).
While loss/income from cash intraday trading is treated as speculative loss/income but derivative trading whether intraday or positional is treated as business loss/income and not as speculative loss/income.

One can adjust loss from speculative trading with other speculative income only and none else.

 

[jamit_05]

Hi Nitin

Do not get confused in two types of trading, one cash intraday and two derivative trading (F&O trading).
While loss/income from cash intraday trading is treated as speculative loss/income but derivative trading whether intraday or positional is treated as business loss/income and not as speculative loss/income.

One can adjust loss from speculative trading with other speculative income only and none else.

Are you sure about the above Bold line? How can i confirm?

Tks.