Hi @shiiromani,
We have partnered with Zerodha to ease the compliance of traders, you can check out zerodha.quicko.com.
Zerodha traders can use coupon code ZERODHA on CA Assisted ITR filing to avail special discounts.
Looking forward to simplify tax filing for you 
Hi,for sebi registered advisor who give intraday call for eq,fno and receive payment in sb account, which ITR from should be used?under which heads of income?
Case 1: If Tax Audit is applicable, you cannot carry forward the loss without getting your books of accounts audited by a practicing Chartered Accountant.
Case 2: If Tax Audit is not applicable, you can carry forward the loss without going for tax audit.
Case 3: Whether Tax Audit is applicable or not, if the ITR is filed after the due date, losses cannot be carried forward
To check whether Tax Audit is applicable, use this tool - Determine Tax Audit
For any further queries, write to us on [email protected]
Case 1: A SEBI registered advisor trading into stock market - treat trading income as capital gains for equity delivery trading and business income for other types of trading. File ITR-2 in case of capital gains income and ITR-3 in case of business income
Case 2: A SEBI registered advisor earning income for investment advice , treat it as a business income and file ITR-3
For any further queries, write to us on [email protected]
Tax audit is not applicable for me ,but I have not filed my ITR for last year,so now can I carry forward my f&o trading losses to this year .
@Quicko
I have incurred long term capital losses and short term capital losses.
I have intraday profit more than 8%.
Turnover is less than 1 crore.
I want to carry forward the losses,
1.do I need my books audited?
2.Is it ITR3 for me?
Quicko what about the tax code as trading fno comes under financial intermediaries and what about advising tax code?
Hello,
As per the Income Tax Act, if the ITR is filed after the Due Date, any loss except loss under head house property cannot be carried forward to the future years. Since you have not filed your tax return for last year i.e. FY 2018-19 and the due date to file original ITR under Sec 139(1) has already passed, you will not be able to carry forward the F&O Trading Loss.
For FY 2019-20, Due Date to file ITR is 31st July 2020. Make sure you file the ITR before the due date so as to claim and carry forward the trading losses.
If you need help for filing ITR, write to us on [email protected]
Hello,
Based on your income situation, here are the answers:
Is Tax Audit applicable?
No. Since the Turnover is less than Rs. 1 Cr and intraday profit (business income) is more than 6% of turnover, Tax Audit would not be applicable.
Is ITR-3 applicable?
Intraday trading would be considered as Business Income and equity delivery losses would be considered as Capital Gains. You can file ITR-3 and prepare financial statements. The Due Date to file ITR-3 for FY 2019-20 is 31st July 2020. You can claim and carry forward the loss to future years if ITR is filed before the Due Date.
If you need help for filing ITR, write to us on [email protected]
Hey @Trader21, you can visit zerodha.quicko.com or feel free to connect with us on [email protected]
@Quicko Team,
When Zerodha itself is giving Tax P&L statement what value addition does auditing brings in?
Since it is more of formality since everything is given by Zerodha . Why do you guys charge so much for Auditing.??
Hey @ManoranjanS
Tax Audit is a review of your financial activity from all the income sources including trading from multiple demat accounts. Starting this year there is an additional complexity of reporting your Long Term trades u/s 112A (granfathering rule).
A practicing CA has to review your trading activity, ascertain FMV (in case of ltcg), review prior years ITRs (for Brought Forward Losses), prepare financial statements (including P&L and Balance Sheet) and then prepare a tax audit report.
Together with Zerodha, we have started leveraging our tech to simplify tax filing for traders (by letting you import your trades to Quicko). Unfortunately, Tax audit requires a qualified CA and hence it tends to be expensive.
I have filed itr 3 without audit with professional income shown more than 50%but business/ future options trading profit less than 6%of turnover…so will I get notice or penalty or both for defective ITR? Itr is filed through your platform only
If Tax Audit as per Sec 44AB is applicable, you may receive a notice for not getting books of accounts audited. If the taxpayer fails to carry out the tax audit, the AO may impose a penalty of 0.5% of the turnover or INR 1,50,000 whichever is lower. However, if the taxpayer can prove a reasonable cause for not getting audit done, AO may not impose this penalty.
At an individual level I spend around Rs.13K per year for the audit. Last year I had around 500 line items in my trade book. I think if one is trading in F&O better be ready to cover for compliance cost.
The guy I work with I found on Vakil Search. But he has since left Vakil Search and we work one to one every year. He was not really sure how to audit a F&O trader account. But together we have moved ahead and now have a rapport. The problem I have found with online service providers is that they don’t have any dedicated in house CAs. Its outsourced at their end. But I always felt that one needs to have a long term relationship with a CA. Saves a lot of time every year after the first year.
The good thing today is that there is more clarity on the trading auditing process than ever before. Thanks to Zerodha and allied entities whom I think played a big part in this.
How audit charges are calculated ?
Does Auditors calculate it based on Turnover or number of trades ?
I found that for traders you offer plan but what is the extra cost if I need audit?