Scripwise Method: In this approach, you calculate turnover by collating all trades on the particular contract/scrip for the financial year.
Tradewise Method: In this approach, you calculate the turnover by summing up the absolute value of profit and loss of every trade done during the financial year.
In both methods, the P&L shall be the same, but there can be a difference in the turnover calculation.
In the case of Intraday Trading, turnover is calculated as Absolute Profit.
Thus, in your case, scripwise turnover = INR 1000 and tradewise turnover = INR 17000
Residential Status as per the Income Tax Act is determined for every financial year based on certain conditions. Refer to the conditions to determine residential status here - Residential Status
Taxability for Income for different Residential Status
Resident - If you hold the status of a Resident, your global income is taxable. Thus, you must file an ITR in India, report all your income earned or received in India and outside India and pay tax on the same. However, you can claim credit of tax paid in outside country as per rules of DTAA
Resident but Not Ordinary Resident - If you hold the status of RNOR, your global income is taxable except any income earned outside India from any source other than business/ profession controlled from India. However, you can claim credit of tax paid in outside country as per rules of DTAA
Non-Resident - If you hold the status of a Non-Resident, the income earned, accrued or received in India is taxable. Thus, you must file your ITR and report such income earned in India.
You can read more about taxability based on residential status here - Residential Status
Once you e-file your ITR and e-verify it, it takes about 30 to 45 days for the ITR to get processed. You will then receive an intimation under Section 143(1). However, if your ITR has not been processed by the tax department for a long time, you should raise a grievance for the same from your account on the income tax website.
As per the Income Tax Act, Intimation under Section 143(1) must be sent within one year from the end of the financial year in which the ITR is filed. Thus, for ITR of FY 2020-21 (AY 2021-22), the ITR must be processed and intimation must be sent to the taxpayer by 31st March 2023.
Trading in equity delivery is treated as capital gains or non-speculative business income. Thus, your short term gains are classified as STCG under the head Capital Gains. Equity Intraday trading is treated as a speculative business income and is thus classified under the head PGBP. Thus, short term gains cannot be treated as speculative business income.
Ok, Thank you. How to add it as a non-speculative income then? In your matrix there is a space for short term gains as per slab, but whenever I upload the tax pnl, it always shows up under STCG @ 15%. Do I have to update manually?
Tax P&L sheet from Zerodha showing buyback gains as STCG/LTCG, which will be taxable at investor hand. But, As per latest income tax amendment Company will be paying tax for the differential share price and investor need not to pay the tax for same. How to correct this while filing respective ITR ?
When you import your data on Quicko, profit/loss on sale of equity shares or mutual funds is classified as Capital Gains. We currently do not support the option of treating it as a Non-Speculative Business Income. Youâll have to remove the trades under the head Capital Gains and separately add details of Non-Speculative Income under the head PGBP (Business Income).
As per the announcement in Budget 2019, the buyback tax was imposed on companies effective 1st July 2019. Thus, any gain/loss from buyback after 1st July 2019 is exempt from tax in the hands of the shareholder.
The Zerodha Tax P&L Report includes such gains under the head Equity. However, they are specifically reported as buyback gains under the tradewise tab. You can thus report that amount as an exempt income in the ITR.
If youâre filing the ITR using Quicko, you can import the data from Zerodha. The buyback gains are reported as exempt income and not included in the Capital Gains.
Read more about Buyback here - Section 115QA - Tax on Buyback of Shares
Depends on your CA and your location. It can range between 5k to 20k.
Documents required would ledger account, trade book and contract notes from your broker.
Hi, my fried filed ITR late after the due date and now he has got the intimation to pay 5k late fee under section 234f.
Is there any way to convince the government to not pay this 5k late fee? He has filed the ITR for the first time and unfortunately filed it late.
When it comes to filing your ITR, you generally donât need to show the sale and purchase of a car for personal use. Itâs not necessary to report these transactions in your ITR. Instead, focus on reporting your trading income of around 6.5 lakhs.
And the TCS of âš10,212 which has been collected on purchasing the car, on that part, since it gets reflected in your Form 26AS, you can definitely claim it while filing your ITR. Make sure to include this amount as a tax credit in your return. It will help reduce your overall tax liability.
Regarding the funds for purchasing the new car, you mentioned receiving 7 lakhs from the sale of your old car, 2 lakhs from your wife, and the remaining 3.5 lakhs from your own earnings. In this case, you donât need to show the old car sale proceeds as income, as itâs a personal asset and not subject to tax. And the 2 lakhs you received from your wife considering a gift from a relative, would be exempt from tax.
