Thanks for replying. Can’t locate the manually adding feature under Income>>Capital Gains. Could you guide?
Hey @Vik,
Here is how you can add your capital gains manually.
You can reach out to us on [email protected] if you need any help 
Ohh this I knew. I was looking for manual aggregating of total purchase and sale and adding it in total without mentioning each scrip details.
Hello,
For FY 2020-21, if turnover is upto 1 Crore and net profit >= 6%, then does the taxpayer have the option of showing income as normal business income (and not as income on presumptive basis) and still be eligible for audit as “Not Applicable”?
Hey @Anil30,
Yes, if turnover is up to 1 Crore and net profit >= 6%, then the taxpayer does have an option of showing income as normal business income (optional to opt for income on presumptive basis), and audit will not be applicable. Here is a tool to Determine Tax Audit
Can govt employee do f n o trading, which itr to be used
For Tax purposes, do I need to Square of OTM positions so that there is a clear Sell and Buy? For example let us say for Oct 16th expiry I had Sold some Nifty 12500 CE, which expired OTM and hence worthless. For tax purposes, there will be Sell for this position and no Buy (Since I did not Square off). Is this a problem?
1 Like
Hey @Vik,
When adding your capital gains manually, you can add scrip wise details for a single trade and can aggregate your quantity, purchase price and sales price.
However, be it scrip wise data or trade wise data, Quicko reports your data as per the ITD reporting requirements. You need not worry about data reporting requirements, you can choose to import all your trades directly from Zerodha or add your gains manually.
Hey @Mr_M,
If the total transaction in shares, derivatives, MFs, exceeds your two months basic pay, the same needs to be intimated to govt. within a month of the transaction as given in 2011 amendment to the CCS Rules 1964 as published in the Gazette of India under GSR 370 (E) dated 9th May 2011.
Note: You can’t invest in a share if you are either involved in their IPO/FPO process as a govt. officer or are getting their shares in director/management quota etc.
When an individual is trading in derivatives (F&Os), ITR-3 has to be used.
Hey @rupeshmandal,
Yes, individual can invest in 54F against LTCG profits, and carry forward the STCL. However, all the conditions needs to be fulfilled before claiming deduction. Deduction u/s 54EC is no longer available on LTCG from shares as per recent change in IT Act.
Can you please throw more light on 54F investment? I went through the article links you have shared but it raises more question:-
E.g. If I had purchased 100 shares at Rs 1000 and after a year sold them at Rs 3000. Can you please help me calculate the Exemption limit?
As per my understanding,
Buy price = 100 x Rs 1000 = Rs 100000
Sell Price = 100 x Rs 3000 = Rs 300000
LTCG = Rs 200000
LTCG tax Exemption = 1 Lakh
Taxable LTCG = Rs 100000 (to be taxed at 10%)
Can you help me further how is the investment done under 54F for exemption?
Exemption = Cost of new asset x Capital Gains / Net Consideration
Also, if one is unable to invest LTCG by the time ITR is submitted, they can keep that fund in a Capital Gains Deposit Account Scheme (CGAS) in bank and utilise in buying a house upto 2 years from date of sale and get tax exeption under 54F? Am I correct?
Thanks,
The link has all the answers you are asking. It is a long article. In the beginning it looks like only 1 paragraph but if you scroll down further you can see that they have given many more details. I guess you have the missed the below parts.
Regarding your example, if LTCG is 1 lakh, net consideration is 2 lakh and suppose cost of new asset is 5 lakh then exemption is 5lakh x 1 lakh / 2 lakh = 2.5 lakh or max actual realized LTCG, so final exemption will be the 1 lakh.
You can please go through the full length of the article. It’s a lot detailed.
Thanks for bringing out this section 54 EC bonds and 54F section. Learned a lot.
Hi @Quicko
Suppose I have 2 lakh loss in FnO trading, and 20k in savings account interest. In this case I have to set off my FnO loss by the interest amount, right? That means I can carry forward loss of only 2 lakh - 20k = 1.8 lakh.
But in this way I am losing the exemption that government gives. Savings account interest upto 10k is already tax exempted.
So even if I setoff my FnO loss by this savings account interest of 20k, can I still claim 10k as deduction under section 80TTA?
Or I cannot claim this deduction?
Any suggestions.
There are two cases:-
case 1: you invest the LTCG taxable amount in a housing property or land within 2 years of booking profit to get exemption under section 54F
case 2: you do not immediately invest in a property/ land to take exemption under 54F. Instead, you park the money in Capital Gains Deposit Account Scheme (CGAS) under section 54.
I am talking about case 2. Capital Gains Account Scheme (CGAS) - Learn by Quicko
My questions are:-
- Is there any stipulated time frame within which the LTCG amount has to be invested in CGAS?
I am asking this because a comment on this article by a Quicko team member says that if you are unable to invest LTCG amount until filing ITR you can deposit in CGAS.
Section 54F: Exemption on sale of LTCA
But we file ITR for this year by July 31, next year.
My first question is - for almost a year can I keep the money with me (until I file ITR) and use it as per my wish or is there a stipulated time frame within which I have to open the CGAS account and park the money?
- money can be parked in CGAS for a maximum of 3 years. CGAS can either be a savings account or a term deposit. if you withdraw before the term, it is considered income for that year and taxed accordingly and even in 3 years if I do not invest that money in buying a property or land and get exemption under 54F, in 60 days after withdrawing the amount, it will be treated as income for that year.
My second question is - can this income be set-off against business loss of that running year?
@Quicko can you please help understand.
1 Like
Hey @siv1,
No, there is no need to square off the position for tax purposes. The tax treatment is based on the profit or loss incurred on the transaction
Hey @Praksy,
As per the Income Tax Act, losses are set off against incomes first. And then income specific Chapter VI-A deductions are given if any income is available after the set-off of loss.
Hence, in your case, you can not claim deduction u/s 80TTA on savings interest since after set-off of loss no income is available.
Note: Even if someone files ITR and claims 80TTA in the above case, the taxman invariably rejects the 80TTA claims and recalculates the tax liability of the taxpayer.
1 Like
Hi!
I would like to know the followings.
If I buy 1 lot BN 26000 CE @ 100 and it expires OTM. What is the Turnover Value? Is it 100x25 =2500?
If I sell 1 lot BN 26000 CE @ 100 and it Expires OTM.
What is the Turnover Value? Is it 2500+2500=5000?
Please confirm my doubts.
Thanks for replying. Could you shed some light how quicko is going to report the data as per it’s understanding of the ITD requirements. As per my understanding, apart from reporting transactions with regards to CG involving grandfathering, there is no requirement to report scripwise or tradewise data. Can I be assured no scripwise or tradewise data would be reported apart from that involving grandfathering clause of CG ?
Hey @Vik,
Quicko reports data to ITD as per trade wise requirement only when grandfathering is involved in CG. Other than that all data which consist of gains/losses, turnover, and profits are all aggregated and reported to the Income-tax department.
1 Like