@Quicko I am a zerodha user(DA1967) and logged in to quicko from zerodha console. However I am seeing that it’s picking data of 2020-21 instead of 2019-20. Can you please suggest how to rectify this.
With regards to audit not being applicable for 2 Cr to 5 Cr, is this still applicable if presumptive scheme is adopted and income is above basic exemption?
Hi @anoop_rawat ,
The data seems to have been imported correctly for FY 2019-20 (AY 2020-21). If you find any discrepancy, please share the screenshot and your TaxPnL on [email protected] so we can take a look.
Thanks!
Hi @Vijay_Dobrial,
The Income Tax Department has still not given any clarification on the tax audit applicability when turnover is between INR 2cr to INR 5cr.
Also, if your turnover is above INR 2 cr you cannot opt for the presumptive taxation scheme.
Here’s a tool to help you determine your tax audit applicability
Thank you so much. This is exactly what I was looking for.
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i am filling business income return & recently i have started f & o trading.
- f & o trading is considered as business income?
- are broker statements & bank statements enough for filling f& o trading income?
- should i deduct TDS on consultancy charges?
- GST on consultancy charges should be claimed in GST returns or as expenses in trading income?
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f & o trading is considered as business income? - Yes, it is considered as Business Income.
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are broker statements & bank statements enough for filling f&o trading income? - Yes - major portion will be covered with the help of broker stmts ,more about preparation of balance sheet and profit and loss account https://zerodha.com/varsity/chapter/turnover-balance-sheet-and-pl
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Should I deduct TDS on consultancy charges? - Consultancy charges fall under the nature of professional services and TDS is to be deducted if the payment is greater than Rs 30,000/- during the year.
However, if your turnover does not exceed Rs 1 Crore i.e if tax audit is not applicable in the previous year; there is no need to deduct TDS.
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GST on consultancy charges should be claimed in GST returns or as expenses in trading income?
Answer is two fold
AA] If you are not providing any other taxable service - It is better to expense it off.BB] Other option is claim the input GST and adjust it against the payment of output GST of taxable service. Further if you don’t have any such taxable service and if you have claimed any such input GST; you can apply for refund of such input GST.
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If profit by selling shares is > 1lac & < 2lacs, can we GIFT 50% shares to our family member(say brother) and claim LTCG benefit (of <1lac) from both accounts?
Ex: 1000 shares of Rs.100 bought on 1/4/19.
Now the share appreciated to Rs.250.
Profit will be 150000( 1000 x 250 = 250000 - 100000)
Can I GIFT 500 shares to my family member’s DMAT, sell shares. Now as profit will be 75000 each in two persons accounts and avoid tax.
My main doubt is Some blogs say Shares transferred off-market(without paying STT) attract 20% tax on Profit of sale. But didn’t explained them clearly.
Hi @bearorbull,
When you transfer shares in form of a gift, there is income from capital gains. Thus, you are liable to pay tax on capital gains even if you gift shares to a family member.
The shares received by a family member are exempt from tax since it is considered a gift from a relative. However, when these shares are sold, there would be tax at 10% without indexation benefit since STT is not paid.
It is important to determine the period of holding from the date of acquiring shares to the date of sale. If it is more than 12 months, it would be LTCG, and if up to 12 months, it would be STCG.
From which email id we recieve notice from income tax departent . How to know the recieved notice is authenticated or not.
Are you saying “If I gift shares to my brother I am liable to pay Income from capital gains”
Or
My brother had to pay ltcg/stcg on Selling
Or
Both???
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Notices are usually received sent from the jurisdiction AO’s email ID. You can find this email ID in your income tax login under PAN details in “My Profile”.
Further, in every notice DIN (Document Identification Number) will be mentioned. (Sample notice with DIN is attached for your reference).
You can authentic the same using DIN in this link https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/AUTHNoticeLink.html?lang=eng
Thank you for information. I would like ask one thing. My wife want start option trading she is not having other income source which ITR is suitable to file income tax if we earn money . And is there any problem we both involved into option trading in income tax perspective.
Since the Gift Tax Act (GTA) was abolished the sender is not liable to pay any tax on gifts.
Sale of shares, ETFs, mutual funds etc received as a gift would be taxable as Income from Capital Gains. The recipient should file ITR-2 and pay tax at applicable rates.
Here’s a read to learn more about Income Tax Implications on gifting of shares
Income from option trading is considered as Business Income. Applicable ITR form is ITR-3.
More about taxation of FNO…https://zerodha.com/varsity/chapter/taxation-for-traders
@Quicko
Can we file ITR for FY 2014-15 or 2015-16 ? Is there any way to file now if had been left unfiled as filing was not mandatory earlier? Or what if had not been done ??
HI @Alex_R,
The due dates to file belated returns for FY 2014-15 or 2015-16 have passed. There is no provision for you to file the returns once you have missed the due date. However, If you have received a notice for not filing ITR from the IT Department, you can file the return for that financial year within the time mentioned in that notice.
Please let me know if bookkeeping and a tax audit are applicable below. Loss is ~2% of the turnover so I believe I tax audit is not required. Please confirm
F&O turnover = 3.52Cr and Loss = 6.48L
Intraday turnover = 1.95L with Loss = 97.54k