iām a recent graduate and traded some 200 lots of usdinr, the turnover is above 2cr. I donāt have any income except for pocket money i receive and some tutions i give. after totaling everything my income is not above 2.5 lks and yes iāve been in net loss in my usdinr contracts. so my question is do iāve to file itr or audit or something like that?
I have traded multiple brokers and eligible to audit. My accountant advised creating separate profit/loss account for all broker and one consolidated profit/loss and balance sheet. Is this treatment correct?
This treatment is valid. Creating separate P&L will give you clarity on the total earnings from a particular account.
Do keep in mind that in your ITR only the consolidated P&L and Balance Sheet needs to be reported.
Paying advisory fees is my expense to make profit from share market .
And also
I take borrow money as loan investment from friend and deploy that money in stock market and make profit and pay interest and share profit to the lender investor.
So ; can i deduct those all expenses from my income ?
You can report your trading income under the head āBusiness and Professionā while filing your ITR, and claim the advisory fees as your business expense. You can also claim the interest paid as a business expense. Since the loan is taken to earn the trading income.
Thanks, also I want to ask is it compulsory to include my personal assets like land in my balance sheet or is it okay to include only those assets which were used in business like cash in hand , car , laptop etc.
I traded on my individual name only .
Also my accountant was saying that there is some issue of reporting GST while audit or ITR but since it is not applicable to traders he advised to submit the return without any gst particulars and if notice comes we can reply them.
Is there any limit to claim the inerest percentage?
Also. If i shared the profit with the lender investor; can i also deduct those all expenses from my income ?
Hi Ishaan,
Yes, you should file ITR-3 and report this income under the head āBusiness and Professionā. You should also prepare your financials and submit them with your ITR.
Since your turnover is less than INR 1 crore, you are not required to get tax audit.
Since it is not possible to estimate total income for a year from beginning. You can make payment of last installment of advance tax after looking at the total income earned upto March and avoid interest penalties. It is always a good practice to make payment of advance tax since any additional tax is paid can be claimed as refund while filing ITR.
You can claim the actual interest amount paid as an expense. Also, keep in mind the interest rate should in line with the market rate.
Secondly, you cannot claim the profit shared as an expense.