Ask us anything about taxation on trading and investing

[Quicko]

@Augustus_Athigaman

I have a query on advance tax liability

Trading income varies month on month. A trader could have been successful for 11 months in FY but can theoretically lose all the money in the 12 month…

How can we estimate our advance tax liability?

Hi,

Advance tax is calculated and paid on estimated earning for a financial year.

@Hiral_Vakil

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.

In case you have paid excess advance tax during the financial year (which might in the case you suggested), you can claim a tax refund for the same while filing your ITR.

[Shivam_Gupta]

Thanks for your reply.
One more query please. What if I don’t want to carry forward my losses, still do I need to file itr-3?

[Abbas_A]

While filing IT from quicko are you able to get the necessary trading data from my zerodha account directly or do I need to send it?

[vishvajit_sonagara]

@Shivam_Gupta

Thanks for your reply.
One more query please. What if I don’t want to carry forward my losses, still do I need to file itr-3?

In case of nominal losses, one can forgo losses & file a normal return. However, there are always chances of receiving notice due to non-disclosure. Also, you can justify the non-disclosure if in reasonable limits.

[vishvajit_sonagara]

@Abbas_A

While filing IT from quicko are you able to get the necessary trading data from my zerodha account directly or do I need to send it?

We have set up https://zerodha.quicko.com. Its a first step in the list of milestone we have set for our selves. In the coming days, we will be integrating with Kite Connect APIs. This will allow you to import profile, trade & P&L summary post your authorization. Stay tuned

[Sourabh_Singh]

1. What is your business model? How you guys are trying to monetize it?

2. How you deal with our private data? What is your framework to deal with data leaks? How you store it (encrypted?)?

[vishvajit_sonagara]

@Sourabh_Singh

• What is your business model? How you guys are trying to monetize it?
• How you deal with our private data? What is your framework to deal with data leaks? How you store it (encrypted?)?

Sourabh,

I am glad you asked these questions, my response below inline

1. What is your business model? How you guys are trying to monetize it?
   Team & I are committed to reducing tax compliance cost for traders using technology. We have launched https://zerodha.quicko.com & will be integrating Kite APIs in a series of milestones. This will help us bring down tax compliance cost by automating ITRs & Tax Audit reports.

Meanwhile, we are committed to serving traders through our team of CAs. In such case we are like any other firm, we charge our customers for our professional services.

2. How do you deal with our private data? What is your framework to deal with data leaks? How you store it (encrypted?)?
   We are a registered ERI with Income Tax Department, which means we go through annual audits, follow best practices & guidelines established by ITD. Additionally, we use firewalls, data encryption, authentication/authorization, GDPR compliant software, training, external audits & other best practices to ensure the privacy of the customer data. You can read our policies here

[Akarsh]

Hi.

So, this year I have short term capital gains. In ITR3 you need to show this profit divided into 5 quarters. In three quarters I had a profit while in the fourth quarter I had a short term capital loss. The table at the bottom of schedule CG does not accept negative values. Then how to show this stcl of fourth quarter?

Thanks.

[vishvajit_sonagara]

@Akarsh

So, this year I have short term capital gains. In ITR3 you need to show this profit divided into 5 quarters. In three quarters I had a profit while in the fourth quarter I had a short term capital loss. The table at the bottom of schedule CG does not accept negative values. Then how to show this stcl of fourth quarter?

Assuming your are referring to utility, break down of cg into five date-ranges is to ascertain your advance tax liability for each period. Hence, no need to enter losses in this schedule. Losses are to be mentioned in Schedule CYLA, BFL & CF, whichever is applicable.

[Akarsh]

My income after deductions and all is Rs. 90,000.00. I have no other income and this 90k is STCG. Do I need to pay self-assessment tax on this. Aren’t I within the 2.5lkh exemption limit?
Thanks.

[Quicko]

@Akarsh

My income after deductions and all is Rs. 90,000.00. I have no other income and this 90k is STCG. Do I need to pay self-assessment tax on this. Aren’t I within the 2.5lkh exemption limit?
Thanks.

Hi Akarsh,

Since your total taxable income is less than the basic exemption limit of INR 2.5 Lakh, There won’t be any tax liability. Thus, you are not required to pay self-assessment tax.

[Prakhar_Agrawal]

Is income from trading futures and options treated as capital gains or business income for Foreign portfolio investors.

[AAN]

HI
My Salary & Other Income is Rs. 6 Lakhs.
I am Fresher & just started experimenting with very small FnO trades last year FY 18-19.
My speculative Net loss in Equity Rs. -10.94 [Turnover Rs. 10.5]
Commodities Futures Gross Profit Rs. 110 Net Profit after charges Rs. 15.65 [Turnover Rs. 310]

1. Considering above both Speculative & non Speculative profit is just 1.5%. Whether Tax Audit is Applicable?
2. I had spent around Rs. 70k in attending various trading related seminars & other charges. If I have to book this as expense then it will be loss , then whether Tax Audit be applicable or not.

Regards
AAN

[Vinay_S]

Tsk quicko pls also confirm do we need gst or may be in future

[Vinay_S]

Don’t waste your money in seminars everything is free on the internet

[Shivam_Gupta]

Thanks for replying.

@vishvajit_sonagara

file a normal return.

You mean ITR-1

[vishvajit_sonagara]

@AAN

My Salary & Other Income is Rs. 6 Lakhs.
I am Fresher & just started experimenting with very small FnO trades last year FY 18-19.
My speculative Net loss in Equity Rs. -10.94 [Turnover Rs. 10.5]
Commodities Futures Gross Profit Rs. 110 Net Profit after charges Rs. 15.65 [Turnover Rs. 310]

1. Considering above both Speculative & non Speculative profit is just 1.5%. Whether Tax Audit is Applicable?
2. I had spent around Rs. 70k in attending various trading related seminars & other charges. If I have to book this as expense then it will be loss , then whether Tax Audit be applicable or not.

Unless you wish to claim & carry forward losses, just file ITR-1.

[vishvajit_sonagara]

@Vinay_S

Tsk quicko pls also confirm do we need gst or may be in future

Vinay,

Non-delivery based speculative & non-speculative trading does not fall under GST. Hence NO GST registration required.

[AAN]

Ok Thanks!

[AAN]

Thanks a lot!!!