std deduction is for salary
Can FNO gains be filed under presumptive scheme?
say I have a turnover of 90L and profit of 30L
Under presumptive, I can declare 6%of 90L, which is 5.4L as profit as opposed to 30L.
Will this be an offence?
I searched many topics online. There are many interpretations. Some say we can file under 44AD and some say it cannot be. Totally confused. If it cannot be filed under presumptive, is there any clause in ITR which stops me from doing so?
Hi @Quicko ,
Does ITD ask us to prove the intent? Or is it purely a choice of the taxpayer (provided that the taxpayer sticks to that choice every year.
Should I go ahead?
Hi @tallerballer,
You can enter the entire amount under the ‘tax’ field and proceed.
Hope this helps!
Hi @guru24,
Under presumptive taxation as well you are required to report 6% of turnover or actual profits whichever is higher. Moreover, the scheme is for businesses who are unable to maintain books of accounts. For F&O businesses the broker reports are accessible and hence, income can be reported as normal business.
Hey @AB1,
The volume of trade matters along with some more conditions. It was specified by the CBDT in this circular.
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If I chose old tax regime initially with my employer then at the end of year. can i choose new tax regime while filing it?
1.) Pls confirm that for LTCG and STCG equity realized gains/losses, I can make one entry for all LTCG and one entry for all STCG on quicko?
2.) EG: If there are 10 LTCG transations and 20 STCG transactions, on quicko in capital gains section, I click on scriwise and then enter Consolidated Total sales consideration and total cost of acquisition (one entry for ltcg and one for stcg).
3.) Income tax department does not ask for individual stock gain/loss right?
4.) This would be much simpler as my broker is not integrated with quicko and the excel template is not working.
Pls respond as soon as possible. @Quicko
Hey @ron94,
Yes, you can enter the consolidated figures. A detailed bifurcation is not mandatory in case of capital gains.
Hi @Quicko ,
i want to know what will be my approx tax liability in following scenarios:
1)if my
(a)income from business is 3lakh +
(b)income from agriculture is 6Lakhs +
(c) LTCG from listed equity is 21.25 lakhs +
(d) dividend income is 60thousand
2nd Scenario:
(A) income from business 7lakhs +
(B) LTCG from listed equity is 21.25 Lakhs +
(C) Dividend of 60 thousand
3rd Scenario:
(A) income from agriculture is 5lakhs
(B) LTCG from listed equity is 21.25lakhs
(C) Dividend income of 60 thousand
How will tax liablity be calculated in all three scenarios , can you please explain step by step ? I posted it here because there is no agriculture income option in quicko.
My CA is telling that we can report only 6% of the turnover as profit and not the actual profit.
Will I be inviting unnecessary trouble if I report only 6%?
I think your CA is wrong, Let me try to give my 2 cents on this
I believe many are getting confused with the word TURNOVER
The word turnover as per the Income Tax act refers to sales (i.e something that recurs every year) or the gross receipts from business.
F&O turnover refers to the total value of trades executed in the Futures and Options segments, and this is totally different from what is considered as turnover by income tax act.
Normally businesses make money by selling either goods or services and incur expenses and report net profit/loss.
What the income tax department is interested in, is to tax the profits earned, for F&O traders their income is the profit made such trades and since there is no sales, there is no concept of turnover here, the word turnover used in F&O is specific to derivative markets, and it is only relevant for calculating the STTs, brokerages and charges etc and is totally irrelevant for income tax purposes.
F&Os classification as a business is a bit tricky in my opinion, although they are classified as non-speculative businesses for income tax purposes, it is not really a business, because most traders are individual traders and are certainly not registered as a company/firm/LLP etc,
And there are no sale of goods or services involved here, i believe F&O trading is more closely related to a profession, people refers to themselves as professional traders and not as a trading businessman.
Anyways, if I am an F&O trader and I want to to file returns on presumptive basis, i believe it can be done in the following manner.
Forget the word turnover, first, determine the total profits made from all trades during the year, second, determine all the expenses incurred during the year (charges, brokerages, rent, electricity, internet etc).
The next step is to arrive at the notional turnover for reporting in the income tax return, so that u correctly report the net profit made during the year.
This can be understood using the following example
Eg:
Total Profit = ₹10,00,000
Total Expenses = ₹200,000
Net profit = ₹800,000 (₹10,00,000 - ₹200,000)
Notional turnover to be reported in the income tax return= (Net profit / 6%) = (₹800,000 / 6%)
= ₹1,33,33,333.
Unfortunately, under the presumptive taxation scheme, since the income tax return doesn’t allow direct reporting of profits, and mandatorily requires the turnover field to be filled, because the presumed profit of 6% is automatically calculated based on the turnover reported, we would have to find a workaround for it by reporting the notional turnover.
This is just my opinion based on my little understanding of the tax law + common sense, i might be wrong, but i don’t think reporting the F&O turnover as per the derivative markets in the income tax is correct, therefore the only other alternative is to report the actual profits in the above mentioned manner using the notional turnover.
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Hi… If someone is having income only from 1)equities, say LTCG of 15L + STCG of 5L 2) saving account interest, say income of 25k 3) Dividend income, say of 2L… No any other source of income- No Salary, No Business income…Which Tax Regimen is beneficial to opt - New or Old ? Kindly guide. Thanks !
Hi @drsthakrar,
As both LTCG and STCG from stocks are taxed at special rates, the chosen regime will not make much difference. Your LTCG will be taxed at 10% (you get a ₹1L exemption) and STCG will taxed at 15%. Other incomes like interest and dividends will be taxed at slab rate and will be tax-free as the total slab rate income is less than ₹7L under new regime (because of 87A rebate).
How do you think 87A rebate is applicable here since taxable income from LTCG is not eligible for the said rebate, in my limited knowledge?
Taxable income including STCG & IFOS here comes 7.25L. Wouldn’t it make him ineligible for rebate?
Can you please check-back &confirm your views ???
In ITR 3 on quicko, if one wants to take the benefit of depreciation on fixed asset like computer, one has to enter purchase date. However, if the fixed asset was purchased in 2021, it’s in its 3rd yr of depreciation, However, if I enter purchase date as 1 APR 2021, then quicko will take 3 yrs worth of depreciation and deduct it from business income, which is incorrect as I have already taken depreciation benefit of the asset in previous years. On cleartax, there is a tab “Opening amount” where the net block from previous years can be entered. Kindly add this functionality. If this is not possible given limited time, kindly advise what should be entered as purchase date. @Quicko
What are ETFs like MAFANG and MASPTOP50 treated for taxation purpose?