Ask us anything about taxation on trading and investing

#23

Hi,

I have questions w.r.t your ITR for F&O traders zerodha plan

  1. I have F&O transaction from zerodha and another broker.
    Are the charges for your zerodha tie up plan applicable for this or is it if trade transactions are to be with zerodha only ?

  2. Also, it’s mentioned there that it’s not for individuals having trading entries more than 250.
    How’s it counted? One buy-sell forms 1 entry or 2 entries ?

  3. How many days will you be taking for the process of itr filing ?

~RKR

#24

Hi Prakhar,

You can show the assets which are used in trading business only. There is no compulsion to show all the assets in the balance sheet. GST is not applicable to traders. Hence no information relating to GST needs to be shown while filing ITR. We have not seen any query raised regarding the same in past.

1 Like
#25

Hi,

Yes, you are required to get a tax audit since you have losses.

The conditions for getting a tax audit are:

  • Losses from business income (Intraday and F&O)
  • Turnover is more than 2 crore
  • Profit is less than 6% of the total turnover

You can carry forward these losses and set off against future profits.

#26

Hi,

Tax Audit is applicable in your case. According to the income tax guidelines tax audit is required when:

  • Losses from business income (Intraday & F&O trading)
  • Turnover is more than INR 1 crore
  • Profit is less than 6% of the total turnover

You can explore the suitable Expert Plan offered by Quicko from below:

#27

My maid earns 150000 per anum. She wants to invest small amounts of money in a liquid fund and equity fund for short and long term. She is not remotely in the taxable bracket. Does she need to file a return if she makes very small gains after which her taxable income is still 0?

#28

I have made long term capital losses by selling my listed equity shares.

Can the capital gains made in a liquid fund (both long term and short term) be written off against long term capital losses against sale of equity shares?

#29

I have made long term capital losses on sale of equity shares.

I am now going to sell a part/vertical of my unlisted business (slump sale). I am not selling the llp’s shares. Hence I will pay 20% capital gains tax. Can I write off my losses in sale of equity shares against such gains so I pay less tax?

#30

Hi Ravi,

Yes, you are welcome to buy the plan offered by Quicko. It usually takes 7-5 working days to finish the ITR filing process once all the required documents are provided by an individual.

#31

Hi,

ITR filing is mandatory if your income is more than INR 2,50,000. In her case since her income is less than INR 2,50,000, she does not need to file ITR.

#32

Hi,

You can only set off Long Term Capital Losses against Long Term Capital Gains. Long Term Losses can not be set off against Short Term Capital Gains. The remaining Long Term Capital Losses can be carried forward for 8 years.

#33

Zerodha varsity says following:

It says audit required above 2crores mark only in first clause.

#34

So can my long term gain of a debt fund be offset against a long term loss in equity shares? Does that make a difference?

#35

Hi,

Limit of INR 1 Cr. is for those who do not wish to opt for Presumptive Taxation Scheme u/s 44AD. And the limit of INR. 2 Cr. is applicable if you wish to opt for Presumptive Taxation Scheme u/s 44AD. In your case since you have losses from trading you can not opt for Presumptive Taxation Scheme. Therefore the limit of 1 Cr. is applicable.

#36

Yes, set-off is possible. And it will reduce your total Long Term Capital Gain taxable @10%.

#37

Hey,

I made loss in F&O and commodity trading, so no matter my turnover I will have to get my account audited. How much does it usually cost for getting an account of salaried individual who traded in derivatives?

#38

Hi,

I am 62 yr old and have a turnover of 1.5 cr with 1.5 lac as profit. Do i need an audit for filing tax returns ?

#39

Zerodha provided intraday & short term profits separately but it does not include expenditures. They don’t provide expenditures separately for intraday , short term & long term. how to show expenditures separately in itr ?

#40

Is it mandatory to file itr4 if I do f&o trading. Can I fill itr2 and show f&o p&l as STCG.
It is being very difficult to get CA to file itr4 under my budget since I am just a bigineer trader and also I am salaried and my income slab crosses 10%

#41

Quicko he tried to say his total contract turnover is 2cr I think not actual turnover pls clarify

#42

Thanks @quicko
I didn’t have turnover more than 2 cr but I booked losses over 3 lacs in this FY.
Which form do I need to file in order to carry my losses forward so I dont need to pay Income Tax next year If I make any profit?