Ask Me Anything on ‘taxation and ITR filing for investors/traders’

AMA (Ask Me Anything)
1

Hello investors and traders! :wave:

Quicko is your go-to platform for all things taxes. We help individuals save, pay, and file their taxes effortlessly.

:hourglass: The due date to file your ITR for FY 2023-24 is 31st July 2024.

With just two weeks left, you might have some last-minute questions about taxes, especially if you’re filing for the first time.

Drop your questions here in this AMA thread, and we’ll answer them all!

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2

Is there any way to get deduction or exemption on STCG? Is there any way to offset this other than Short term capital losses?

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3

Hi @Kiyoto_Kai,

Most deductions like 80C, 80D etc. are not allowed for capital gains. However, you do get the basic exemption on the total income.

Moreover, short-term gains will be adjusted against short-term losses as well as non-speculative business losses (includes losses from F&O trading).

4

I have capital gain and I am filing ITR 3, is it possible to show capital gain under business income and claim expenses like insurance or cost of running business?
and
Why i am not able to download Tax computation after filing tax or tax pdf document? Please enable that feature

@Quicko please respond

5

Let’s assume I have income only from F&O trades (4 lakh) and capital gain/dividend/FD (2 lakh). Would I need to pay taxes if I opt for new taxation?

6

Hey @sameer_ranjan,

Your F&O profits, dividend and FD interest will be taxed at slab rate, and there will be no tax liability up to a total income of ₹7L because you get a rebate of ₹25,000.

However, capital gains are taxed at special rate, 10% for LTCG and 15% for STCG.

So, in this case, you should first calculate your total tax liability as per the tax rates. As the total income is below ₹7L, rebate up to ₹25,000 on the tax liability will be allowed. If your tax liability is higher than this, you’ll have to pay the differential amount.

7

My business income is less than 5lac can I show my stcg as business income and get tax relaxation

8

I have Capital Gain of 6 lakhs and FD interest 1 lakh. Total 7 lakhs.

As per new regime should I pay any taxes ? Any capital gain tax ?

9

Is ITR 3 ready on quicko?

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Hey @tallerballer

Yes, e-filing of ITR 3 is live on our platform. You can use all the features like Autofill from ITD, import data from various apps and e-file your ITR.

Thank you.

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Hello @VRV

Reporting settlements (trades) as CG or Business Income depends on the intent of taxpayer. If the trade was undertaken with the intent of long term investment for capital appreciation and not earning short term profit out of it then it has to be reported as CG and not Business Income and vice-versa. The ITD also recommends to follow the same reporting for the following years once you report CG as Business Income.

Yes, our team is working on the feature to download Tax Computation post filing and it will be live by this week. Meanwhile, once you have e-filed the ITR on Quicko, you can download ITR Form from ITD portal.

Thank you.

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12

Excellent, thanks for the quick reply!

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@Quicko @Jason_Castelino

I am getting below error when i am filling Business income (BP) and Dividend in OS.

Looks like something changed this year. Do you know where to file Dividend income?

image
image1815×415 34.6 KB

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Hey @AlgoEye,

This is a category B defect due to dividend income not being mapped as ‘0’ when it is null. The team is actively working to resolve it. We’ll fix it shortly.

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Hi @Quicko

I am a salaried individual having some income from trading also ( cash, F&O, intraday). I am filling ITR-3 via your site. I have given all the access to Quicko to take data from ITD/Zerodha/Form-16.
For Business income, Quicko is asking for some balance sheet. I am not clear on what to fill there.
Can you please help ?

16

Hello All,

It is my first time dealing in Rights issue and having issues with it.

It’s about South Bank Rights Issue (SOUTHBANK-RE-BE).

Situation:

  1. South Bank declares Rights Issue to allow purchase of South Bank shares @ Rs 22/- each.
  2. I owned 63 shares of South Bank (before) and I had a right to purchase 15 shares of South Bank @ Rs 22/- each.
  3. I purchased additional 35 Rights shares (SOUTHBANK-RE-BE) at a price of Rs 3.95 each (premium) from secondary market (NSE exchange).
  4. So now I had total 50 Rights Issue (SOUTHBANK-RE-BE) which I can utilize to purchase actual South Bank shares.
  5. On the day of purchase window, I purchased 50 South Bank shares from South Bank @ Rs 22/- each.
  6. However, Zerodha continues to show all the 50 South Bank shares purchased as part of Rights issue @ Rs 22/- instead of showing as 15 shares @ Rs 22/- and 35 shares @ Rs 25.95/- each. (Rs 22/- + Rs 3.95/- = 25.95/-)
  7. The problem is that I have already paid from my pocket Rs 3.95/- each for 35 shares = Rs 138.25 + taxes/charges, etc. and am concerned over non-reflection of real purchase price from my perspective.

So my question / concern is:

  1. Shouldn’t Zerodha show South Bank shares (purchased on back of Rights issue) as 15 shares @ Rs 22/- and 35 shares @ Rs 25.95/- each ?
  2. If I were to sell those 35 shares @ 25.95/-, I won’t be making any profit. But Income Tax department will say I made a profit of Rs 3.95/- since Zerodha shows as Rs 22/- each, which is a double loss for me !

What should I do? Please guide me.

Thank you!

17

Hey there to all F&O traders. I want to get an idea about what all items like fixed assets (computer, TV, Phone etc.) do you claim depreciation expense on? Kindly reply here so that a comprehensive list can be compiled that could benefit everyone.

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Hey @ron94,

You can claim depreciation on assets those are wholly and solely being used for your F&O trading business. Laptops and computers are the most common assets where people claim depreciation.

19

Hi @Quicko ,

My income split is as follows:

  1. Salary: 20LPA
  2. Other Income: 40k
  3. Current Year Future Loss: 18k
  4. STCG: 2L
  5. LTCG: 2.5L

The Brought forward loss from futures from previous year is 96k. Can this be set-off against any of the income? If yes, then the ITR utility is marking it as carry-forward loss instead. Is this a bug?

Thanks,
bjain97

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Hey @bjain97,

F&O losses can be set off against all incomes exempt salary in the same year. Once these are carried forward, you’ll be able to adjust them only against other business incomes.

As you do not have any business income in the past FY, there’s no income to adjust the losses and hence, they are being carried forward.

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