Hi ,
I am currently unemployed and traded in equity markets.
I have below income
Also ,last year I had gone for audit and carry forwarded the loses.
Thanks
Is interest earned on pension cum pensionary benefits/ deposits taxable ???
Yes, you should always file ITR. No need for an audit since turnover is low (below 1 Cr.), file ITR-3. There is always an option to get your accounts audited if AO raises scrutiny. Provide income statements, trading statements & any supporting if and when it is required.
Capital Gains. It is difficult to justify place of business & local contact information for FPI in case you report it as business profession income.
Depends on the scheme. Interest is exempt if it’s one of government approved schemes such as PPF, India Post, Atal Pension Yojana etc…
I am a regular service pensioner retired from Govvt service in 2016. Last year, i got some dues last year as arrears of VII cpc and have some savings that too from earlier pension benefits post retirement. If i earned interest on these saving deposits, is it taxable ? Thts my querry.
My CA says that LTCG on equity mutual funds is not eligible for grandfathering u/s 112A, since STT is not levied on such funds at the time of purchase.
Is this correct?
That is correct.
In that case, no one will be able to avail the benefit of grandfathering as there is no STT on purchase of equity mutual funds.
Is this not a farce then as all investment guides/resources say that LTCG on equity mutual funds is tax-free up to 1 lac just as equity shares are?
Not true. STT is payable on all listed equity oriented MFs.
Are you sure that STT is levied on PURCHASE of Equity Mutual Funds?
I googled and found STT is only on SALE of MFs.
Link: https://cleartax.in/s/securities-transaction-tax-stt#levy
Also in my MF Account Statements STT is only on sales, not on purchases.
Please clarify.
STT is applicable on sale of all listed securities including equities, MFs, debentures. LTCG (held for more than 12 months) is only realized on sale of such capital assets. Section 112A is applicable to only such securities where date of purchase is before 31st January 2018 & date of sale is after 31st January 2018. Unlisted securities sold before or after 31st January do not qualify u/s 112A since STT is not paid. FMV is means to grandfather any such gains made on or before 31st January where STT was paid.
Hope this helps.
If I incorporate private limited company with main objective of trading FnO , can I buy and hold shares in companies demat account ?
Demat accounts can be held in the name of individuals, HUF, private limited companies , public limited companies and trusts. However, partnership firms are not eligible to hold demat account in their name and such demat accounts will have to be opened in the names of the partners.
Few things to keep in mind
Tax benefits (If your taxable income surpasses 50 Lac, your effective tax rate can go as high as ~42%, while for companies, tax rate is capped at 25%)
Reduced Liability
Increased compliance
Thanks but I heard somewhere that there is some sort of NBFC license required for it . Will it create a problem?
I want to ask the question which is outside trading.
My mother who had a small flat sold it & she got 20 lakhs for the same in her account.
What will be the tax implications.
How she can distribute the amount among her three sons.
She is senior citizen aged above 65 years.
What are the ways to save the taxes if any she has to pay
Hi @DA3110
The proceeds from the sale of property will be treated as capital gains income and taxed at 20%. She can invest the amount received from the sales proceeds under certain assets to claim tax benefits.
You can refer this article for details - Capital Gains and Taxes
She can distribute the amount among her 3 sons, this amount will be treated as a Gift income in their hands and will not be taxable. However, this Gift income should be disclosed in the ITR filed by her sons.
How to make it possible to pay less possible taxes while locating in India and working with foreign stock exchange if you do have a chance on this matter. Does it really working out on this one ? How do you plan to go with that ? I hope you really do.
Hi @OcaewenGF
Since you are located in India your residential status would be resident. Therefore all global income would be taxable.
The Foreign stock exchange income would be taxable income and if any holdings are there, they are required to be disclosed under foreign assets.
Secondly, to save taxes - you can utilize your deductions under Chapter VI-A optimally.
If tax has been paid on foreign income, DTAA provision between both countries is required to be checked for credit of foreign tax, before it can be claimed as tax paid.
Is it mandatory to setoff Business losses against Capital Gains ?
Eg.
Business Loss (Trading Non Speculative) - 30,000/-
Long Term Capital Gains (Mutual Funds) - 50,000/-
So can i carry forward 30,000/- Business loss without setting it off with LTCG. As LTCG is tax free upto 1 Lac/Year.
Or 30,000/- Loss must be setoff against LTCG ?