Ask Me Anything about Taxation on Trading & Investing #TaxSeason2020

[cailajindal]

Yes, you will be eligible for the refund, povided you have proper proofs of investment. ITR can be revised till 30th Nov, 2020. Penalty shall not be there until we have timely and fully paid our taxes to the department.

Regards
Ila Jindal
[email protected]

[Vik]

Thanks for replying. Are you from quicko?

[cailajindal]

No, not from quicko.

[Quicko]

Hey,

The last date is 30th Nov to file belated or revised ITR for AY 2019-20. To claim the refund, you need to revise the return and claim deduction u/s 80C with proofs of investments.

[nituldas]

My FnO trading turnover (calculated by Zerodha) is around 31Lakhs with profit of around 11L.
I also have STCG and LTC loss. Can I opt for presumptive income under Sec 44AD?
Apparently Quicko is not showing any option to opt for presumptive income? Pls clarify.

[Quicko]

Hey @nituldas,

You can navigate to Incomes tab > Business/Profession and add your trading income under the head Business Income u/s 44AD.
Or if the trades are already imported /added , navigate to
Incomes > Business/Profession > Nature of Business > Add Business > Business Income > Add Business Details and under ‘Do you want to opt for Presumptive Taxation Scheme u/s 44AD’ Select ‘Yes’. In this case, you will have to delete the trades imported and enter your Gross Revenue i.e. your turnover and Gross Profit as your Profit.

Hope this helps Feel free to ping us on [email protected] or raise a ticket on our contact us page.

[nituldas]

Is it fair to opt for presumptive income by fno traders, to reduce their tax liability?
For e.g. turnover under 2 crores and actual profits lets say 30% (>6% minimum under Sec 44 AD)

[Mani_Kan_Dan]

I’m holding some shares more than 1 year (Zerodha is showing it as ‘Long Term Holdings’ - 66 shares out of 130 shares of the company). - If I sell it then which share does Zerodha sell? From long term holding or short term holdings?

If I sell them - the profit from it won’t add to my income slab right? Example:- My FY income is 5L and the long term capital gain is 1L. So, my total income is 6L. Still I’m tax free right?

Do I have to pay tax on dividends I get on the U.S market? The U.S gov already detect dividend tax on it.

Also, I can offset the trading gains on the U.S market with the loss on the Indian market right?

Thank you!

[Mani_Kan_Dan]

Income tax on Blogging - How about multiple people working on same website with 1 Adsense account?

If multiple bloggers work on the same website and receive the Adsense income on a single bank account.

1. Which ITR form should the person use to file an income tax return?
2. What “business code” should be selected on the form for Adsense - Youtube/Blogging, Amazon Affiliate income (also trading/dividend as minor income)?
3. If the income exceeds 10L per financial year - But falls below 5L after paying the other bloggers. Does the person have to pay any tax? Where should the name of the other bloggers be mentioned on the ITR form? Do they have to file ITR return as well (what if they earn below 2.5L per FY)?
4. Can I receive gift up to 50k from others along with it?
5. What is Advanced tax - Is it necessary here? When does it need to be paid?
6. What all are the expanses that can be claimed for blogging? Can the blogger also claim 80C (along with the blogging expenses)?
7. If the person has other income from trading & investing income - but this falls within the income tax slab. Then its ok, right?

Thank you!

[Quicko]

Hi @nituldas,

@Quicko

Under the presumptive taxation scheme you need to report higher of the following:

1. Profits @ 6% of the turnover
2. or actual profits.

In case your actual profits are higher than 6% of the turnover, you should report the actual profits.
You can read more about the presumptive taxation scheme u/s 44AD here

Learn by Quicko – 30 Jun 20

Section 44AD - Presumptive Taxation for Business | Learn by Quicko

Business with sales or turnover upto 2 crore & dont wish to maintain accounts should report atleast 6% or 8% as presumptive income under Section 44AD

[Quicko]

@Mani_Kan_Dan

Also, I can offset the trading gains on the U.S market with the loss on the Indian market right?

Hi @Mani_Kan_Dan,

Your capital gains will be added to your Total Income. Capital Gains income is usually a special rate income. However, for LTCG which is taxed u/s 112A a deduction up to INR 1,00,000 is available.

If you are a resident, your global income will be taxable. Hence, your foreign dividend will be taxed in India.
However, you can claim tax credit of tax deducted in US while filing your ITR as per DTAA.

Set-off of losses can be done when income and losses are offered in the ITR. You can set off LTCL against LTCG and set off STCL against STCG.

[Quicko]

A lot of bloggers and freelancers opt for a presumptive taxation scheme under which they can declare their income at a predefined rate of 50% of the total receipts and file ITR 4.
They are also required to assess the advance tax liability and pay it in the last quarter of the financial year i.e. on or before 15th March.
When opting for presumptive taxation, the taxpayer cannot claim expenses.

However, in case you do not want to take benefit of the presumptive taxation, you can report it as income from business and profession and file ITR 3. You can go for the business code of - 20012 or 14005

[praven_kumar]

Hi am doing bank nifty option trading (buyer) every day in intraday segment so am in learning stage and am doing with very small amount below 10k on evey am may take profit /loss . Here i want to understand few points like just assume that if i earn gross profit 10 lk with in 4 months(31st dec 2020 to 1st april 2021) and turnover is 1cr .

1. Is it comes under CA audit and what happen if CA audit.?

2.am doing option buying in bank nifty every day (as per market) at a premium price and square off the positions when the premium price hits profits/loss is this procedure comes under any complaince.

3. I started my stock market trading in june2020 so when i have to file the ITR.

Please help me with information

Please help me with iformation

[Quicko]

Hi @praven_kumar, we have answered your question here

@Quicko

If the turnover is 1 Cr and profit is 10 lacs, tax audit is not applicable since profit is more than 6% of turnover.

No. This is just a strategy for trading. Tax Compliance comes into picture when you make profit/loss from such trading activity.

Learn by Quicko – 14 Aug 19

Income Tax on F&O Trading | Learn by Quicko

Read about Income Tax on F&O Trading (Futures & Options) of equity, commodity & currency - Income Head, ITR Form, Due Date, Turnover, Tax Audit, Tax Rate

[nituldas]

@Quicko Are the following charges, from the “Other Credit and Debit” worksheet in the Zerodha Tax PnL excel, taken into account while auto-calculating the expenses in your application? DP Charges, AMC for Demat Charges, Payment Gateway Charges, Call & Trade Charges etc. ?

[Trader21]

I’ve filed my itr using Quicko. Pl let me know how can I view my transaction history. @Quicko

[praven_kumar]

Hi @Quicko

Thank you for information.

Here i want to understand the consequences if CA aduits. Like why CA audits is required if loss/profit is less than 6% than turnover is 1cr. Please explain this point.

[Quicko]

Hi @nituldas, Quicko <> Zerodha integration takes into account all tradewise data and it’s expenses. However, “Other Credit and Debit” worksheet is not considered when auto calculating.
You can still claim these expenses under Incomes > Business/Profession > Expenses > Other Expenses

[Quicko]

Hi @Trader21,
Thanks for using Quicko You can see the transaction history by logging into your Quicko account and navigate to View profile > Income Tax Returns > Select Current ITR/Past ITR > History

[Quicko]

@praven_kumar, as per the Income Tax Act and section 44AB, a taxpayer is required to get their books of accounts audited if they had followed the presumptive taxation scheme previously and want to claim losses.