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
@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?
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 :
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.
@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 ?
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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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
Anyone?
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
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?
Hi,
@Quicko
Please allow me to allow me to ask a few basic things.
-
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?
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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.
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
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
@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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I had a question regarding ESOP perquisite gain and taxation.
The company is deducting perquisite gain tax when I exercise my stock options (which is correct)
But when will I get the perquisite gain amount? They are saying only when you sell your stocks will get the gain after IPO.
Example: Stock exercise price 2$
FMV when I exercised the option = 10$
Share price when sold after IPO = 15$
No of shares = 100
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Why can’t the company pay the perquisite gain (10$-2$X100) in my salary if they are deducting tax on it? Why do I need to wait till it is sold in the IPO?
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I am paying the tax in this financial year, IPO will happen say next FY year and I will get the gain amount next year while its tax was paid in this FY. How will the income tax department know that I have already paid some tax last FY year (10$-2$X100)? I know I need to pay the capital gain on the gain that I will get (15$-10$X100) but how will the income tax depart know that I already have paid tax in the last FY year?
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Hi @Jack_R,
- The company will show the perquisite gain amount in the salary under the head 17(ii) in the year in which they are deducting the tax. You will receive the gain when you realize (sell) the stocks.
- The capital gains will be taxable only on the additional amount (i.e. 15$-10$) because in the last year’s return the stock options will be shown under 17(ii) at an amount of (10$-2$). Hence the Income Tax department will have the information that you have paid the tax.
But when I sell my shares in the secondary market, I will get 15$-2$ profit correct? and the same will be displayed in the capital gain statement. How will the ITR calculator know I have already paid tax last FY in this case?
Do I manually need to modify the capital gain statement from ($15-$2) to ($15-$10) while showing it in the ITR? (i.e. 15$-10$) If I import the statement using any tool, it will consider $15-$2 as my capital gain…
Hi @Jack_R, Generally the stocks are shown in DEMAT are at cost basis (i.e. 10$) but in case if they are shown at exercise price (i.e.$2), then you have to manually update it while filing the Income Tax Return.