Ask Me Anything about Taxation on Trading & Investing #TaxSeason2020

AMA (Ask Me Anything)
141

Hi @karimsaran

Yes, It might be the case that your total taxable income was less than the basic exemption limit or you were eligible for rebate u/s 87A.

142

Hi @brokenbull

In case of audit applicability where your turnover is less than 1 crore, all the conditions should be checked. No condition overrides others. If you fall under all the criteria of audit only then the audit will be applicable.

143

@Quicko
My friend who is a Central Govt. employee joined in mid Feb. 2021. He received his March 2021 salary in April and his TDS was also deducted by the employer.
Now to get his TDS returned, when to file ITR ?
Will his March’s salary be counted under current FY, because salary was credited in April or it is still counted as last FY income so ITR will have to be filed this July 2021 or next July in 2022, for getting back the tax deducted in March ?

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144

Hi @Stonecold,

Income is taxable on the accrual basis, therefore the salary of March will be taxable in FY 2020-21, even though it is received in April 2021.
ITR for FY 2020-21 should be filed before the due date i.e. Sept 30, 2021 to get the refund of the TDS deducted.
You can find the details of TDS deducted in your Form 26AS

145

FnO and Intraday utility bill

I want to show utility expenses for FnO and Intraday trading (Electricity and mobile bill)
Do I need to submit the bill receipt? I don’t see any option to upload it

146

@Jack_R

Here are the expenses a trader can claim

147

@Quicko you are saying a trader can claim expenses like office rent, laptop as deductions. Tell me is it applicable only for traders trading under company account or even individual traders can also claim it.

I am an individual trader staying in a 2bhk rented apartment. 1 bedroom i am using for trading/office purpose. Can i claim deduction in this case?

148

Hey @abhijeet1 ,

If your nature of business is purely a trading then you can claim all your trading business expenses while filing your ITR-3.

You can refer below article of filing ITR-3 for more insights :

149

Dear Quicko,
I think you have provided wrong information here, because when I have checked, not only the salary of March is given in April, but even the TDS deducted is shown in April only(for the month of March) in the form 26AS as well.
Hence we can not show that income in FY 2020-21. We will have to show the income of March in FY 2021-22.

150

@Quicko
If 1 year before I invested Rs.10lakh in an Equity MF, and today the corpus is 15lakh. Now if I withdraw only 10lakh from it, then will it be considered as withdrawal from principal amount or withdrawal from profit for tax purposes ?

151

There is no “withdrawal” from mutual funds, only sale of units. Capital gains are computed based on the difference between the selling price and the purchase price of the units you sold.

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152

Suppose I am NOT doing F&O trading (non-speculative business) I am only doing share intraday trading (speculative business)

Is tax audit applicable in the case of only speculative business? Intraday turnover around 2 lakhs

153

Anyone?

154

Intraday equity is also subject to audit rules. But turnover limit is 10Cr.
Also profit must be > 6% of turnover. And if you are total income is below tax threshold, then no audit needed.

Also look at

155

Hi,

My friend received “Outstanding Demand” from the Income-tax department. Their calculation is completely wrong, they have not considered the Home load amount which was shown while filing the ITR

I want to disagree with the “Outstanding Demand” as their calculation is incorrect. Which option do I select while disagreeing? I don’t see any valid reason that I can select. Can I disagree by selecting the “Others” option? Which option do I choose while disagreeing?

156

Hi,
@Quicko

Please allow me to allow me to ask a few basic things.

  1. I have my F&O data with me but I cannot seem to find any non-speculative section in my ITR3 where should I fill this data in?

  2. My income is below 1lkh but I’ve had 50k STCG. I don’t think I qualify for tax @15% but when I show this 50k STCG in schedule CG in A3 later on in sch. CYLA it shows me 50k in the taxed @15%. How can I escape this taxation?

Thanks.

157

Dear @Quicko

How capital gain calculated on physical settlement of stock. I got different opinion on different platforms and experts. So I just little bit confused. Please brief:

For e.g.:
I sold 1 lot of SBIN PE @ strike price of Rs 500 at Rs 20 and the same is deep in the money and the position is physically settled(Closing price of SBIN on expiry day is Rs 430).
Now my question is acquisition cost( for capital gain purpose) of SBIN would be Rs 500(i.e. strike price)
Or Rs 480( Rs 500- premium received)
Or Rs 430 (closing price of underlying).

Thanks

158

@Quicko

159

Do we show the depreciation expenses on laptop under Other Expenses manually?
Or
Do we show it under “Fixed Assets” which i assume Quicko platform will pick the depreciation expense automatically (upon providing the book value, and the depreciation rate)?

I am a FnO trader only. The objective is not to double count the depreciation expense.
Any help will be appreciated

160

@quicko - I think your understanding and your tool is not correct, it is misleading about audit in case of loss from FNO -
If you opt for presumptive scheme 44ad then only audit is needed, if your income is less then 1cr and does not opt for 44AD then audit is not required, read below -

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