Zerodha - Number One Discount Broker in India
- Thread starter Traderji
- Start date
1) Yes, i was trying to check if there can be any case to show MF as business income say in case of short term / long term losses. Cant get my head around it , Reading too much tax stuff ...
2) Btw can indexation adjusted Debt MF returns be carried forward as a loss? Seems wicked if you could get double indexation and adjust leftover 'loss' against Future Debt MF. That would be a bit of relief against inflation. ofc its 3 years now.
thanks
2) Btw can indexation adjusted Debt MF returns be carried forward as a loss? Seems wicked if you could get double indexation and adjust leftover 'loss' against Future Debt MF. That would be a bit of relief against inflation. ofc its 3 years now.
thanks
In Zerodha backoffice, I was happy to see the new feature of current profits in 60 days challenge...it helps to keep watch on our profitability. Well done Zerodha...
In Zerodha backoffice the turnover in F& O for deciding if tax audit is required, the following is the basis :
1) In futures contract, the gross addition of positive and negative difference per contract per settlement wise is taken ( meaning netting of profits/loss is done per settlement wise). In my view it is to be done on each contract traded wise...as ICAI guidance note which gives basis for such calculation has nowhere said per settlement wise .In case of multiple trades, opposing trades on FIFO basis to be netted out.
2) In options, ICAI guidance note says the sell side of options should be treated as turnover. But 3rd clause also states that when a opposing trade is entered, only difference of buy/sell price to be considered as turnover ( which gives same treatment as futures contracts. The sell side ( also the purchase side when option contract is purchased) to be taken as turnover when the contract sold ( or purchased) is not squared off by entering into opposite side contract ( meaning allowed to expire worthless at expiry).This appears logical...
The above treatment of options seems more logical and also it will reduce the turnover in options trades as most of the contracts will be squared off by doing opposite trade in that contract.
I am sure Zerodha must have consulted experts in taxation before doing this but another look at these calculations may be necessary.
Smart_trade
In Zerodha backoffice the turnover in F& O for deciding if tax audit is required, the following is the basis :
1) In futures contract, the gross addition of positive and negative difference per contract per settlement wise is taken ( meaning netting of profits/loss is done per settlement wise). In my view it is to be done on each contract traded wise...as ICAI guidance note which gives basis for such calculation has nowhere said per settlement wise .In case of multiple trades, opposing trades on FIFO basis to be netted out.
2) In options, ICAI guidance note says the sell side of options should be treated as turnover. But 3rd clause also states that when a opposing trade is entered, only difference of buy/sell price to be considered as turnover ( which gives same treatment as futures contracts. The sell side ( also the purchase side when option contract is purchased) to be taken as turnover when the contract sold ( or purchased) is not squared off by entering into opposite side contract ( meaning allowed to expire worthless at expiry).This appears logical...
The above treatment of options seems more logical and also it will reduce the turnover in options trades as most of the contracts will be squared off by doing opposite trade in that contract.
I am sure Zerodha must have consulted experts in taxation before doing this but another look at these calculations may be necessary.
Smart_trade
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To answer my own qn
1) May make sense if you have substantial Losses in trading and you want to offset it by making MF gains part of business income. Capital gains cannot be adjusted against any other head and you will have to carry forward the Business losses.
2) Seems LT Debt MF loss can adjusted against Future LT Debt MF Gain. Hopefully with indexation as well
Nice Article here. if anyone interested, that clearly says what can offset what for all cases.
1) May make sense if you have substantial Losses in trading and you want to offset it by making MF gains part of business income. Capital gains cannot be adjusted against any other head and you will have to carry forward the Business losses.
2) Seems LT Debt MF loss can adjusted against Future LT Debt MF Gain. Hopefully with indexation as well
Nice Article here. if anyone interested, that clearly says what can offset what for all cases.
Last edited:
In Zerodha backoffice, I was happy to see the new feature of current profits in 60 days challenge...it helps to keep watch on our profitability. Well done Zerodha...
In Zerodha backoffice the turnover in F& O for deciding if tax audit is required, the following is the basis :
1) In futures contract, the gross addition of positive and negative difference per contract per settlement wise is taken ( meaning netting of profits/loss is done per settlement wise). In my view it is to be done on each contract traded wise...as ICAI guidance note which gives basis for such calculation has nowhere said per settlement wise .In case of multiple trades, opposing trades on FIFO basis to be netted out.
2) In options, ICAI guidance note says the sell side of options should be treated as turnover. But 3rd clause also states that when a opposing trade is entered, only difference of buy/sell price to be considered as turnover ( which gives same treatment as futures contracts. The sell side ( also the purchase side when option contract is purchased) to be taken as turnover when the contract sold ( or purchased) is not squared off by entering into opposite side contract ( meaning allowed to expire worthless at expiry).This appears logical...
The above treatment of options seems more logical and also it will reduce the turnover in options trades as most of the contracts will be squared off by doing opposite trade in that contract.
I am sure Zerodha must have consulted experts in taxation before doing this but another look at these calculations may be necessary.
Smart_trade
__________________ I
I am totally accepting Smart trade views for calculating turnover.I wish zerodha looks this matter with care and guide us.
Thanks to smarttrade.& zerodha
In Zerodha backoffice the turnover in F& O for deciding if tax audit is required, the following is the basis :
1) In futures contract, the gross addition of positive and negative difference per contract per settlement wise is taken ( meaning netting of profits/loss is done per settlement wise). In my view it is to be done on each contract traded wise...as ICAI guidance note which gives basis for such calculation has nowhere said per settlement wise .In case of multiple trades, opposing trades on FIFO basis to be netted out.
2) In options, ICAI guidance note says the sell side of options should be treated as turnover. But 3rd clause also states that when a opposing trade is entered, only difference of buy/sell price to be considered as turnover ( which gives same treatment as futures contracts. The sell side ( also the purchase side when option contract is purchased) to be taken as turnover when the contract sold ( or purchased) is not squared off by entering into opposite side contract ( meaning allowed to expire worthless at expiry).This appears logical...
The above treatment of options seems more logical and also it will reduce the turnover in options trades as most of the contracts will be squared off by doing opposite trade in that contract.
I am sure Zerodha must have consulted experts in taxation before doing this but another look at these calculations may be necessary.
Smart_trade
__________________ I
I am totally accepting Smart trade views for calculating turnover.I wish zerodha looks this matter with care and guide us.
Thanks to smarttrade.& zerodha
Dear Zerodha,
Last week I registered in http://crowd.in/uat/ , My Prediction was 7780, and Nifty close 7790 on friday, the website showing winner of 7750 and 7900 etc, so what is the margin etc fo win ?
Last week I registered in http://crowd.in/uat/ , My Prediction was 7780, and Nifty close 7790 on friday, the website showing winner of 7750 and 7900 etc, so what is the margin etc fo win ?
