Ask me anything about taxes on trading and investing

Hi @Saptarshi_Deb

If you’ve losses, you can set off and carry forward them if you had reported them in your ITR of the relevant year. Since you’ve had losses for 2 years and you have not filed your ITRs, you will not be able to set off or carry forward them to future years. Here’s a read on Set Off and Carry Forward of Losses under Income Tax - Learn by Quicko for your reference.

However, you set off and carry forward the losses for FY 2022-23 while filing your ITR for FY 2022-23/AY 2023-24. Here’s how you can Import Trades from Zerodha : Help Center and continue to Prepare & E-file your ITR on Quicko : Help Center on Quicko.

If you still face issues while filing your ITR on Quicko, please Submit a ticket : Help Center and our team will guide you further.

Hope this helps.

Hi @Victor2

It is mandatory to file your Income Tax Return (ITR) if your taxable income is more than the basic exemption limit of ₹2.5 lakhs for an individual less than 60 years of age, ₹3 lakhs for resident senior citizen taxpayers aged between 60 and 80 years, and ₹5 lakhs for resident super senior citizen taxpayers aged 80 years or more.

It is always advisable to file your ITR in order to set off and carry forward the losses against future incomes.

Hope this helps.

Hi @Kushal_Agarwal1

Here are the answers to your questions.

1a. If you have trading income from Intraday trades in Index F&O, you must file ITR 3 as they are business incomes and are to be reported under Non-speculative business incomes, respectively. Business income is also taxed as per the applicable slab rate.

1b. You can claim all the expenses incurred for the purpose of your trading business. Here’s a read on Expenses a Trader Can Claim in ITR - Learn by Quicko

2a. Yes, they will still be business income. Read more about Income Tax on Intraday Trading - Learn by Quicko and Tax on F&O - Futures and Options Trading - Learn by Quicko

2b. If you report regular business income, you must file ITR 3 and if you report for presumptive taxation scheme u/s 44AD, you must file ITR 4. Here’s a read about Which ITR Form Number to Fill? - Learn by Quicko

2c. Goods mean any movable property except money and securities. Thus, trading in shares and securities is not considered supply as per the GST Act and falls outside the purview of GST. So, you can directly report this as your business income.

2d. You can opt for the presumptive taxation scheme and report the profits as 6% or actual profits, whichever is higher and pay tax on the same.

2e. Since all your transactions are digital in nature and are reported by the brokers to the ITD, it is advisable to show the actual profits (if they are higher than 6% of your turnover).

2f. In this example, a tax audit is not applicable. Read more about Tax Audit Applicability : Help Center

Hope this helps!

I have Direct Tax Pro Plan of quicko & I have two complains about Quicko.

  1. It doesn’t autofill the previous years brought down losses even if previous year return is filled at quick only.
  2. Importing pnl statement from icici was a big pain, it never worked. I had to do manual entries.

Hello, is the processing time for ITR forms change? Are there any criteria for how the IT department processes ITR files? I filed for four persons, three of whom have ITR 1 and one has ITR 3. ITR 1 was processed completely, but ITR 3 is still pending. I’m just wondering about the procedure. All of them filed Around the same date July 4 and July 5th.
Thanks

Hi @atvt27

Thank you for bringing your concerns to our attention. We apologize for any inconvenience you have experienced with our Pro Plan.

However, Please read about the features of Pro Plan here.

  1. The pre-fill feature is working fine on Quicko. Here’s how you can Brought Forward Losses : Help Center on Quicko.

  2. We are actively working on partnering with tech-enabled investment platforms. However, as of now, we do not have an integration with ICICI Securities. The integration is in our pipeline.
    Meanwhile, you can Import trades using Quicko template : Help Center for the brokers not listed with us and calculate your capital gains for planning or filing or taxes.

If you are still facing any issues, please Submit a ticket : Help Center and our team will address all your queries.

Hope this helps.

Hi @VRV

There is no specified timeline, the whole process generally takes 20-45 days from the day of e-verification or the receipt of ITR-V by the CPC.

Hi,

I recently filed return using Quicko. Here is my feedback:

  • The biggest anxiety about using quicko is disappearance/reluctance of CA after filing, if I have any followup questions. There is no way I can make followup appointment with CA who filed. I will have to rise a ticket who will forward request to CA who filed. There is no direct contact!

  • If I chose ITR3 Rs 3.9k plan, how much time is CA supposed to spend with you. Is there any guideline? What if CA rushes through?

  • Provide ability to pick CA. Have reviews and ratings for CA so that clients can pick who they want based on experience/expertise/reviews. I want to stick to CA and develop relationship. In other words, make it like a doctor appointment.

  • At the end, the CA should summarize the complete picture in brief - sources of income, deductions, tax bracket, tax owed. And Email the same - one page summary a layman can understand. He should spare few minutes for Questions and Answers. This would reduce lot of followup time. It’s hard to review 130 pages of filed return, especially for non-tax professional.

Thanks,

@edude IMHO, what you are describing is called assisted filing,
and is already formally supported in the IT portal.

What all online ITR-filing portals are currently exploiting
is the lack of awareness among the general public
that what is being promoted on these online ITR-filing portals is CA-consultation, NOT CA-assisted filing.

In future,
the individual filing the ITR is on the hook,
for any queries raised by the IT-dept, on an individual’s filed ITR.

Along with every CA consultation,
any “best-effort” support in future being hinted at / promised on these online tax-filing portals,
has no legal meaning / value to it.

A CA is NOT responsible/liable if you file your ITR,
or even if they file your ITR using your login details.

In my experience,

  • most online tax-filing portals are simply aggregators for CAs.
    (think of Ola and Uber, but for CAs instead of auto-drivers and taxi-drivers)

  • The quality/knowledge of most CAs on these portals is questionable at best.

  • Many CAs on these portals are simply in a rush
    to pick-up and complete as many ITR-filings as they can
    during the “tax-season” rush of a few weeks each year.

    • and openly do the bare minimum, often missing on indvidual-specific corner-cases
    • and when in a hurry, make data-entry mistakes too
2 Likes

Hi @Quicko : Why dont individuals who earn via FnO trading use presumptive taxation of 6% of profits instead of marginal income tax as FO is non-speculative business income ?

Also, for example - can someone with a salary file FO income in presumptive taxation of 6% as all income/expense is through banking channels ?

Hi @Lotusdew

Individuals can choose to file their F&O income under the presumptive scheme as it is a non-speculative business income only.

So, yes, an individual with a salary income along with business income (F&O) can file under a presumptive taxation scheme.

Hi @Quicko , If i have not declared rent with my employer and hence it is not included in tax computation calculation in form 16, where can i add the same in Qicko portal.

Hi @Vinoth_Kannan

You can claim the HRA even if not if you have not disclosed it to your employer if you have all the required documents for the rent paid.

Here’s how you can Claim Various Allowances : Help Center on Quicko under the Salary Income.

Hope this helps.

@Quicko Hi,
I am bit confused about reporting of foreign share holding in Schedule FA.
If I have invested in single foreign company, multiple times over the years,
Do I need to report lumpsum holding in Schedule FA or transaction wise data?
Also, if it is second, do I need to report transaction done in 2021 and before?

Hi @Akash_Shah

You will have to enter individual entries of all the holdings in the schedule FA including of the previous years.

1 Like

@Quicko Hi,

If I have received my Company shares as RSU’s or ESOP and broker account has been created by company in foreign country to hold shares / cash . Do I need to report details of foreign broker in Table A2 or Table A1?

(I understand that in Table A3 we will report details of Equity shares hold, gross interest or dividend, sale proceeds gross till 31st of calendar year)

Please clarify on Depository Account and Custodial Account in Table A1 and Table A2 in Schedule FA.

Hi, Never file in presumptive scheme. You will be doing blunder. Presumptive scheme is for those who does not maintain any books of accounts and they do not know their profit/loss. Your actual profit/loss is available with broker/government already. I don’t know why Quicko people are misguiding. What is the source for their reply, please don’t trust them blindly, they do not know most of the things.

1 Like

This is blunder. How can you advise this? Who is behind this reply, I would like to talk to him personally.

Suppose, In one F&O transaction you have Sale of 4 crore less Buy of 2 crore. You have a profit of 2 crore. Now your turnover is 2 crore as per turnover rules. Here you are suggesting that he can show profit of 6% i.e. 12 Lakhs and pay tax on on it while having an actual profit of 2 crore. Assume that he had no other income in past years and trading was done taking loan which he has repaid. Now if he buys a house of 2 crore after filing ITR of only 12 Lakhs. Won’t IT guys would like to know how he has done this? Do you have any logical explanation on this?

Refer Hon’ble Supreme Court, in the case of CIT vs Sri J.H. Gotla, Yadagiri on 29 August, 1985AIR 1698, 1985 SCRSupl. (2) 711has observed that any interpretation which leads to absurdity or unintended consequences that interpretation has to be ignored

@vishvajit_sonagara What is your take on this? Are your experts giving this advices in public platform correct?

1 Like

Ah. Finally I got some support.

I have said this multiple times on this forum.
Just to add on to this. Now let’s say he buys a house for 1cr. This gets reflected in AIS. How will you explain your source of funds. I can give more examples but then most of us just want to reduce tax. And most will agree with one who says you don’t have to pay taxes.

1 Like

@Vineeth_Sharma @Jason_Castelino : I think the tax laws are there for optimized filing. Why do you say this is absurd ? Is GAAR applicable for individual filings ? Which part of the law do you say is broken when you think @Quicko is misguiding people ?

  1. Why do you say that presumptive taxation is for people who dont maintain accounts ? Where do you get this interpretation ? I thought its for people who do all transactions via banking channels that you get 6% presumptive taxation. Obviously if everything is via banking channels, there is always records of the transaction. Also there is no upper limit of this - so where does your stand come from ?

  2. Its clear in the law presumptive taxation is for non-speculative business income. Why is income from trading which is also non-speculative business income different ? What will be the challenge for source of funds since the source is well known - which is trading profits ? Where exactly do you see the challenge ?

As the adage goes - when you make sensational claims - you must support with irrefutable evidence. If you want to stick to you stand please clarify

  1. You know someone personally who used presumptive taxation and was given a notice and you worked on the response.
  2. You are aware of any case laws which can support your claims
  3. You can pinpoint which law has bene broken