With the due date to file income tax return fast approaching, I have been asked this question by many people. A futures out electronically on screen-based systems through a stock broker or sub-broker or such other intermediary registered under section 12 of the Securities and Exchange And of India Act, 15 of in accordance with the provisions of the Securities Contracts Regulation Act, 42 of or the Securities and Exchange Board of India Act, 15 of or the Depositories Act, 22 of and the rules, regulations or bye-laws made or directions issued under those Acts or by banks or mutual funds options a recognised stock exchange; and. B which is supported by a time stamped contract note issued by such stock broker or sub-broker or such other intermediary to every client indicating in the contract note the unique client identity number allotted under any Act referred to in sub-clause A and permanent account number allotted under this Act. From the reading of the above it is clear that trading in derivatives including commodity derivatives on a recognised stock exchange will not be options as a speculative transaction futures hence not treated as speculative business. Therefore since these are not considered as speculative business, therefore income trading such transactions will be considered as normal business income and loss from such transactions will be considered futures normal business loss. Turnover must be firstly calculated, in the manner explained below:. Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated. Expenses such as postage, conveyance and telephone, incurred for carrying on the business can be claimed as business expenses. You can also claim depreciation on assets used for the business or profession. These rules can be summarised as follows:. There will be no need to maintain books of accounts. Provisions relating to filing of Income Tax Return. If Tax Audit is applicable: Due date will be 30 th September of the Assessment Year If Tax Audit is not applicable: Due date will be trading st July of the Assessment Year 31 st August for the current assessment year i. You should file it before due tax to carry forward the loss and set off from income in future. I have get and profit how much I and Tax, and How to calculate TurnOver. This is my Trading profit loss How to calculate please help and. Lets say for example I have Rs. Then how to calculate income and tax? How to calculate net profit? CAN I SET OFF MY CARRIED FORWARD LOSS OF A. You can carry forward and set off the speculation loss against speculation gain only. The loss can be carried forward for 4 years. CA Ruchit Sheth — Can I set off this Loss tax my Business Income or should Trading pay tax on 10 lacs income and carry forward the loss. For more details and CA Ruchit Sheth — Govt doesn;t care of you. Is this figure sufficient for audit. Details are in excel sheet. I didnt file ITR 2 or 4 ever. If my turnover is around 60k and I made a loss of 10k. Hope you will find this helpful. For any further queries call me CA Ruchit Sheth — Dear Futures Explained very nicely. Thanks V K Vishnoi. Sir, I and scrutiny notice for not auditing the accounts and defective return file for AYI am ajob holder and done some intra day trading, total and cost of intraday share trading is entered as turn over and so i have declared a turn over of morethan 1cr during return file. So pl suggest me how to procede further to aviod this penalty sir. I futures a peculiar problem. How do I RECTIFY THIS ISSUE in ITR4? Plz help me out Thanks to options in Advance. Please note,I seen Your Valuable note for the Prov. I had in Future and Option i. Long term Capital gain on sale options Back of shares Hind Unilever of Rs 3,29, Income from other Sources 5, Total Income — 1,69, Total Taxable income Nil. I will be highly obliged in getting Your Valuable opinion. I have less than 1 crore turnover. I dont want to claim any expd or dep. Trading dont want to setoff or carry fwd losses. I tax to claim expd 2. I want to claim dep. I want to carry fwd loss. I dont want to avail option of 44ad. Suppose i dont go by 44AD and i have tax loss too, why i ll be prone to tax audit?? I could bot understand sir. If i dont want to tax by presumptive taxation under section 44AD, want to claim expd. Can you please cite which section or case law makes me to take shelter under 44AB sir?? Thank you, very good information. Attention of all is also drawn towards this article http: What options the implications from tax compliances tax of view? Who are doing speculation business futures and selling shares same day — Intra day trading and got loss trading 94k so is it require to do audit even the tax sales — purchase both positive and negative amounts is less than 1 cr. Correct me if wrong. Thanks for the article. Dear sir, could u please give any reference where the manner of calculating turnover as above is given. Dear sir, could u please give and reference where the manner of calculating turnover as stated above is provided. Your email address will not be published. It seems you have Javascript disabled in your Browser. 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Obligation to Furnish Statement of Financial Transaction SFT or Reportable Account Under Provisions of Section BA of the Income Tax Act, Articles Featured CA Pratik Anand 51 Income Tax Return Income tax Return Filing Tips 78 Income Tax Tips 77 ITR January 7, at 8: November 16, at 5: October 11, at 4: CA Ruchit Tax says: October 29, at 4: September 28, at 5: October 29, at 3: August 18, at 8: August 4, futures 4: Trading 26, at 2: July 2, at 6: May 31, at 8: October 31, at 6: April 19, at 9: April 17, at April 6, at March 23, at March 18, at February 25, at February trading, at 1: February 17, at 9: V K Vishnoi says: December 3, at November 7, at 8: November 5, at 7: November 3, at 8: August 31, at August 28, at 7: Arun Kumar Kushwaha says: August 28, at August 27, at August 22, at August 13, at August 13, at 9: August 12, at August trading, at 2: CA Krishna BAngad futures Leave a Reply Cancel reply Your email address tax not be published. 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Income tax - Derivatives Trading, Intraday, Shares, Mutual Funds
Income tax - Derivatives Trading, Intraday, Shares, Mutual Funds
2 thoughts on “Tax on futures and options trading”
He defined global village as a small village where electronic media made it possible, and how the information flows from parts of the world at the same time (Mcluhan, 1964).
He defined global village as a small village where electronic media made it possible, and how the information flows from parts of the world at the same time (Mcluhan, 1964).
There are other resources that can be accessed from the US Census Bureau home page.