need help on taxation

hi ,

my details of trades are as follows :-1:

my dounts are;-

  1. do i need to get my account audited .
    2 . which itr form i should file
    3.Also, can i use presumptive taxation scheme ?

Ashok Kumar

@siva @ShubhS9

Can I show STCG as business income and LTCG as LTCG only in ITR???

I want to continue this way for years.

Yes, you can show as business income but need to continue the same in future years as well.
Please go through this circular…

Hey @ashok_bansal

One can treat both as busines income as there is no segregation of short term and long term in business. However, as per the CBDT circular, you can treat Long term capital gain as Capital Gain Income. This stand, once taken in a particular Assessment Year, shall remain applicable in subsequent Assessment Years also.

You can read more about it here.

@siva @Quicko @ShubhS9

Just one more doubt,

Can I claim expenses on investing books purchased (for learning long term investing in stocks) from my income made from FNO trading??

Yes, you can claim…

Hey @ashok_bansal

You can claim a deduction on the expense incurred while purchasing a book for learning about investing in stocks. Here is an article that will help you understand what all expenses you can claim a deduction on.

Hope this helps! :slight_smile:

Need help and guidance.
I trade on Zerodha platform (only in equity cash segment, no F&O or other segments). Have made decent profits by trading this year 20-21. For taxation you have some thing called “Tax Loss Harvesting”. But for me now the Short term tax loss harvesting opportunity is showing zero. Is there any way I can reduce my STCG by buying or selling some shares by end of this financial year. Please advice.

Tax-loss harvesting is usually selling a share that has experienced a loss(Unrealized). By realizing, or “harvesting” a loss, you are are able to offset taxes on both gains and income.

This is usually done at the year end to reduce tax liability.

Hey @annu_anand

You can sell the loss-making shares before the end of the financial year and reduce your tax liability on STCG by converting those unrealised losses into realised losses. This will help you in reducing your tax liability.

If you want to hold the stock, you can buy the stock again at the starting of the next financial year so that the portfolio remains unchanged.

I guess we can buy the already sold stock again any day after the sell date and not necessarily in the next FY. Isn’t it @Quicko ?

Hey @Praksy

Your understanding is correct, one can buy the stock anytime after selling as it won’t affect the capital gains of that year.