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

[a1b1trader]

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

Tks.

Cant say for 100% sure. I am no tax expert, just a trader like you.
This was the position a few months back.
That I read in various forums and blogs.
I am not aware if there is any change in the situation.
Only a CA or tax expert can answer it.

BTW what is the point of confusion,
intraday or
positional or
business loss/income or
speculative loss/income or
any other word of the line.

 

[Subhadip]

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

Tks.

ye s it is true,

any derivative trade( intraday/ positional) is business income

 

[a1b1trader]

Hi friends

For your tax related problem visit the following blog by Zerodha

http://www.zerodha.com/z-connect/blog/view/taxation-simplified

 

[stockmaverick]

Thanks Sir. I have one last query. If I have losses incurred from F&O trading, how should that be reported in ITR form. What should be "Full Value of Consideration" and "Cost of Acquisition" in Short-Term Capital Gain section.

Regards,
Nitin

 

[a1b1trader]

Thanks Sir. I have one last query. If I have losses incurred from F&O trading, how should that be reported in ITR form. What should be "Full Value of Consideration" and "Cost of Acquisition" in Short-Term Capital Gain section.

Regards,
Nitin

Sorry I do not know how to fill ITR4 for trading F&O.
FY 2013 was my first year of trading and I too have to face all these problems.

Shall be thankful if some one please help us, how to fill ITR4 for F&O

 

[shravank30]

Thanks Sir. I have one last query. If I have losses incurred from F&O trading, how should that be reported in ITR form. What should be "Full Value of Consideration" and "Cost of Acquisition" in Short-Term Capital Gain section.

Regards,
Nitin

IN STCG Full Value of consideration is the total of the nett amount you sold the shares for (After brokerage and othe charges)and the cost of acquisition is the nett cost of acquiring all the above shares that you sold. (Deduct the brokerage & other charges)

Please dont add the cost of any other shares that you may have bought but not sold in the relevant period
For example share A you bought for 10,000+ 500 brokerage etc.
Share B 20,000+1000
Share C 30,000 + 1250
Total acquisition will be 31,500 as share c is not sold
now you sold A for 12,000-500 brokerage etc
Share B 25,000 -1000
So total value of consideration will be 35,500
Profit 4,000

 

[stockmaverick]

Thanks, But my specific concern was on how to fill ITR for trading done through F&O. Which form to be filled up for a salaried person plus having income from F&O, and any guidance on how to fill it.

Thanks,
Nitin

 

[jamit_05]

Is indexation allowed on Bonds? Or just Property.

 

[vinay21verma]

I heard that from this year, the account has to be audited if the business profit or loss is more than 8 percent. This means that anyone who is dealing in FnO and has profit or loss more than 8 % (which will be the case for most of FnO traders), the account needs to be audited by a CA.
Any idea if this is correct ? Usually how much would CA charge for FnO Profit and Loss statements auditing ?

Thanks !

 

[shravank30]

I heard that from this year, the account has to be audited if the business profit or loss is more than 8 percent. This means that anyone who is dealing in FnO and has profit or loss more than 8 % (which will be the case for most of FnO traders), the account needs to be audited by a CA.
Any idea if this is correct ? Usually how much would CA charge for FnO Profit and Loss statements auditing ?

Thanks !

Auditing is compulsory only if your turnover is more then 1 crore.
The amount of profit or loss has no bearing on it.

To calculate F&O turnover, the value of the stocks is not considered, only the nett profit or loss.
For example in trade A you earned 10,000 and in Trade B you lost 5,000, your turnover will be 15,000/-
So you have to maintain a table for your entire trades based on FIFO and then calculate your turnover
Let me know if you need any clarification