Ask me anything about taxes on trading and investing

AMA (Ask Me Anything)
42

In rhe schedule 112A of itr2, the sale value is worked out by the application itself which is different than the capital gain worked out based on sale value. Thus a difference comes in statement of broker and system. Basically excel utility is doing away with stt and expenses. Is my understanding correct?

If the cg worked out by thus in the utility differs With broker report, would itbe objected by IT department?

43

Asking for a friendā€¦
Salary is around 2.55 lac after deductions
F&O turnover is around 25 lac
& profit is around 57000

Tax audit applicable or not???
Please help its urgent

44

Being an individual f&o trader can i show my travelling expenses ( going a family trips and adventure trips ) on income tax non speculative business income.
If yes how much can i show and benefit

45

Hi @rawgamingstar

Audit applicability chart on Quicko is recommended assuming that you have opted into Presumptive Taxation Scheme in any of the previous financial years and opted out in any of the succeeding 5 assessment years.

If that is not the case, then you can opt out of Tax Audit and file your return. You can read more about Tax Audit Applicability: Help Center

46

Hi @Effy

In Schedule 112A the data has to be entered by the taxpayers based on the tax p&l report available from the broker. Hence, there should not be a difference between the sale value mentioned in the ITR and that available in the brokerā€™s report. However, the Net Profit/ Loss can differ as the broker would claim STT as an expense along with other transfer expenses while as per the Income tax act, you can not claim the same and thus it would not be objected to by IT Department.

Hope this helps!

47

Hi @MEDI_MANOJ

it is recommended to claim only those expenses which have been wholly and exclusively incurred for the purpose of your F&O trading business.

48

Can you file my itr for fno loss

1 Like
49

1
I have fno loss of 1,20,000 so can I carry forward this loss for next coming years?

2
If I can carry forward that loss then in which section ITR 3 allows to enter?

3
If I can carry forward fno loss so Audit is mandatory for me?
Iā€™m in presumptive scheme and note that My turnover as per new rule of fno calculation is 10 lacs.

4
I have short term capital gain of 70,000 , so can I set off my 1,20,000 fno loss with stcg as Iā€™m filing as business man under presumptive scheme since last 3 years

Thanks :+1:

50

I have 3 trading account zerodha , finvasia or kotak how do I fill my itr and to know about audit , as I see quicko only integrate with zerodha, never filled itr , any help would be great full

51

Letā€™s say, audit is NOT applicable in my case. Can i still go with audit and file the return after 31st july and between audit due date ?

52

Hi @Vasu_Prateek

Quicko is a DIY (Do it Yourself) tax planning and filing platform.

So, hereā€™s how you can prepare your Income Tax Return on Quicko & proceed to E-file.

In case you need assistance, you can Submit a ticket : Help Center and our team will guide you further.

53

Hi @Kumar_Thakkar

Here are the answers to your queries.

  1. If you report the F&O loss of the current year in the ITR then you can set off and carry forward the same to the future year.

  2. F&O losses are to be reported as Business income in the ITR-3, so if you report your losses there it shall be automatically set off and the remaining losses carried forward can be checked in Schedule CFL in the ITR.

As per the rules, if a taxpayer opts for the presumptive taxation scheme in a financial year, he/she should opt for it for the next 5 financial years continuously. However, if the taxpayer fails to do so, he/she would not be able to take the benefit of the presumptive taxation scheme for the next 5 financial years and has to get Tax Audit done.

  1. Carrying forward the losses does not necessarily mean getting an audit done. However, you can refer to this article to determine your Tax Audit Applicability.

  2. Yes, you can off set them as in the current year if you report your F&O losses then it can be set off against all incomes except Salary and remaining shall be carried forward. Hereā€™s a read on Set Off and Carry Forward of Losses under Income Tax - Learn by Quicko

Hope this helps!

54

Hi @Anup12

We are actively working on partnering with tech-enabled investment platforms.

However, if your broker is not integrated with Quicko, you can import your trades using the Quicko Template.
Hereā€™s a jow you can Import trades using the Quicko template.

Also, Quicko is a DIY (Do it Yourself) tax planning and filing platform.
Hereā€™s how you can prepare your Income Tax Return on Quicko & proceed to E-file.

In case you need assistance, you can Submit a ticket: Help Center and our team will guide you further.

Hope this helps.

55

Thanks for help.

One query ,
Can I choose to not set off my fno loss for stcg or business income of this year and choose 1.2 lac loss as whole to Carry forward?
Is there any option to do this? as my income is less than 3 lacs so no tax applicable so if I didnā€™t not set off loss now then it will benefit me in future if I have more gain.

56

You can. However, if you have any outstanding tax liability, interest penalty will accrue until such point when you either pay self assessment tax or file your tax return.

1 Like
57

Hi @Kumar_Thakkar

No, you cannot choose to not set off and carry forward losses.
As per the law, you will have to report them under Schedule CFL in order to carry forward the losses.

1 Like
58

Thank you so much

59

Hi ā€¦ have few queries

1a) I am salaried person - with F&O trading income (intraday trades in index F&O) - can I show this income in single line item in Other Income while filing returns (assuming i donā€™t want to complicate return filing and simply pay taxes at tax slab as per rule)
1b) In above mentioned, If yes, then can I show ā€œnet incomeā€ as single item as Other income i.e. Gross minus direct charges which are part of contract note like brokerage, stamp duty, gst, etc

  1. I am salaried person with F&O trading income (intraday trades in index F&O) - assume annual turnover of 1 cr with gross profit of 20 lacs, direct charges part of contract note 5 lacs, therefore net profit 15 lacs. All transactions digital ofcourse as online and to be shown as business income
    a) since F&O trades are intraday will it still qualify as business income as these are F&O and not equity scripts
    b) which ITR to use under presumptive or regular business filing respectively for above
    c) since being filed business income, as per GST rules above 20 lacs turnover requires one to have GST number and file GST returns, in this case even for this activity even though turnover is 1 lac do we need to take GST or it can be avoided and still be filed as business income?
    d) can I opt for presumptive tax u/s 44AD and show 6% of turnover i.e. 6% of 1 cr i.e. 6 lacs as income and pay tax on 6 lacs ?
    e) if higher of actual net income i.e. 15 lacs or above income 6 lacs is to be disclosed then what is benefit of opting presumptive tax if we are disclosing same income i.e. actual ? Also under presumptive tax maintaining books not needed so if we dont disclose actual income how will it be ascertained? so it is ok to disclose 6% of turnover instead of bothering about higher actual income
    f) is tax audit applicable in above example
60

Who need not have to file tax returns? What is basic exemption limit ? Loss 24k turnover is 2.05 lakhs in option. Retired person.
Have to file returns ?

61

i have started trading intraday f&o on zerodha from august 2020 still i have loss of about 3.5 lac, i did not filed itr for past 2yrs, if now it is to be filed this yr then how possible on quicko. pls help me , your 2yrs past vdo is not helping me for filling itr, i have log in by my details , but showing itr1 while opening, pls advise