i am new to intraday trade and doing it for last 6 month but i hear that i should have to pay tax on what ever i earn through trading but i am little bit confused about tax paying
could anyone please explain these to me:-
1.how to know i am eligible for tax paying or not
2.on what basis my earning should be calculated only gain or loss or both average
3.how much earning through trade is taxable
4.what is the process to pay tax
5.how to calculate that how much i have to pay tax
6process to file itr
Regarding Markets and Taxes…all that you need to know and more…http://zerodha.com/varsity/module/markets-and-taxation/
Answer for your queries:
1. You can find out if your liable to pay tax or not by calculating your income, if your income is above the basic exemption limit (Refer 2.3) you will have to pay taxes as per the slab.
2. If you doing Intraday trades you would have to show your activity as business and you can calculate total profit for the year (Sales-Purchases-Expenses).
3. As said earlier, its not just trading income its calculated on your total income, if your total income is more than the exemption limit you will have to pay taxes.
4. After calculating total taxes payable you can pay tax online.
5. Calculate your total income and pay taxes according to the slab of respective financial year.
6. As you would be categoriesd as a trader you will have to fill ITR 4, Refer here for details on how to fill.
However if you have no clue of how this works, it would be best to consult a chartered accountant (CA) before filing your returns.
i go through but can not found my answers