Need help regarding tax

Taxation
1

I am the salaried person my salary is not more than Rs2 lakh
I recently start intraday I sadly have loss of 1900
now my question is should I liable to pay tax
because some people are saying I need to Audit my income by CA
and 2nd thing why I need to pay tax on intraday I am already paying it on daily bases at the end of the market session in form of GST and STT
I tried many forums and the online article by Zerodha varsity but still in confusion

Thanks

2

  1. If your turnover does not exceed 1 cr. per year, you do not need audit.

  2. Since, you have a loss, you can set it off for 3 years against your short term capital gain.

  3. Tax here means Income Tax. Everyone has to pay Income Tax which is direct tax. STT, GST etc. are indirect taxes and you don’t get any refund for these.

  4. If you do not file income tax return, you cannot claim short term capital loss (point 2 above).

  5. Always better to file ITR since, you might get a refund for TDS deducted anywhere like bank, employer etc.

It is fairly easy to file ITR for salaried people and you can do it online yourself directly on incometaxindiaefiling.gov.in website.

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3

just to confirm, in point 1 it 2 cr. per year? As I read on internet

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4

You need to check. Last time i checked, it was 1cr. But the limit keeps changing.

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5

ok sir thanks
and one more doubt
here turnover means the message i got from NSE daily at 6 pm that me trade value is Rs xxxxxx ?

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6

Turnover is

(Buy price X Qty) + (Sell price X Qty). Contract note has this figure calculated for you.

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7

Hi Aman,

  1. Tax Audit is only applicable if your Turnover exceeds 1 Cr. or if you wish to claim and carry forward the losses. In your case since loss from Intraday is negligible and if you don’t wish to claim it. There is no need to prepare books of accounts and get them audited.

  2. If you do not have any other income during the financial year then you can file ITR-1.

  3. As far as already paid taxes are concerned. Taxed paid on trading transactions are Indirect Taxes and Income Tax is a Direct tax. Hence any profits earned from tradings are taxable while filing your ITR.

  4. Absolute profit is considered as Turnover for income tax purpose. It is the sum of all positive and negative differences from all trading transactions. Eg: Profit from transaction 1 is Rs.10,000 and loss from transaction 2 is Rs.15,000

Realised Profit = Rs.10,000 - Rs.15,000 = Loss of Rs.5,000
Absolute Profit = Rs.10,000 + Rs.15,000 = Rs.25,000

Hope this is helpful. For any further assistance, you can write to me at [email protected].

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8

I am little confused about this …so lets say my intraday buying turnover is 1,25,00,000 lac and intraday selling turnover is 1,25,50,000 (so basically only 50,000 profit) what is my turnover ? is it 50000 or its total of buying and selling i.e. 2,50,50,000? @TAXIQ.IN @Gaurav_Chandra @Quicko @Ca_Omprakash_Jain

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9

Trading Turnover i.e. Absolute profit for Intraday Trading is determined on the basis of profit or loss from each trade and not on the basis of sell value and buy value.
To calculate the Absolute profit, you will have to calculate absolute values of profit or loss from each trade. The aggregate value of such absolute values is your turnover.

Read more with examples here - Calculation of Trading Turnover from Trading Income

For help regarding tax filing, write to us at [email protected]

1 Like
10

The Settlement profits / losses trade wise is the turnover. Eventually its your profit / loss is the turnover.

12

Can you please tell me cost of auditing ?

13

Hi Bharat,

Quicko is an online tax filing platform. However, when our customers have audit requirements, we connect them with Chartered Accountants who could conduct tax audit if they need.

You can visit zerodha.quicko.com for ITR filing.

Hope this helps.

14

My father died on August last year and he received salary of 264000 from april- June and he retired on June and he was born on 24/06/1959 so he had salary income of 264000 and fno loss is 245000 with option buy turnover is 27 lacs and option sell turnover is 28 lacs so this itr return need to be filed or if it is senior citizen so his income was less than 3 lacs so it is necessary to file or without filing it is ok

15

@Rishav_Ghosh,

You should file the ITR even though the total income is less than Rs. 3,00,000. Since trading activities are done and IT Department runs e-campaigns every year and sends notices if ITR is not filed. For more you can refer to the below: