Taxation Query for Salary and all type of trading

Hi,

I have been trading in Equity Delivery, Equity Intraday,FO (both MIS and CNC)and Commodity.
For Taxation purpose, can I show Income from Equity Delivery(I made profit small profit around 8K) as “Short term capital gain” and pay tax for this?

And for FO and Intraday ,I will calculate turnover (I made loss) and show the loss?
Do I need to use ITR 4?

Basically , I want to avoid “Auditing”. But since my profitability is less than 8% of my turn over in FO and Intraday(beause I made loss) ,Do I need to go for Auditing?

NOTE: I also have a Slary Income (more than 10L per annum) for which tax has been already paid by the company

It will be very helpful ,if some one can clarify this.

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  • F&O income is treated as business income. you have also speculative income So go for ITR-4.
  • if you file return on or before due date i.e. as per u/s 139(1) than you can able to carried forward your losses. upto 4 years speculative and upto 8 years business, loss can be c/o.
  • short term profit can not set off against long term losses.

i strongly recommend to consult CA.
Man, you earn 10L p.a. why are you worried !!! :grinning:

Thanks

assuming your query is for AY 17-18

  1. for equity delivery you have check the holding period of shares in your demat a/c. if you hold for less than 12 months then they are qualified as short term…as you have paid STT you will be taxed @ flat rate of 15%. if your income is below basic exemption limit then you can reduce the short term gains for BEL but your income crossed BEL so you have to pay tax @ 15%. if you hold more than 12 months then the gain is exempt…

  2. for intraday and F&O the absolute value of profits and losses is your turnover. if that turnover crosses 2cr then you have to get your accounts audited or if you claim your income to be less than 8% and your total income is more than BEL then you have to get audited… as you are claiming your income to be less than 8% and your total income is more than BEL you have to get audited u/s 44AD. you should file ITR4

file your returns within due date to carry forward your loss.

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Total income includes Salary income also?
Total income= salary 10L + FO trading loss

You have mentioned this:. “or if you claim your income to be less than 8% and your total income is more than BEL then you have to get audited.”

If this is the case whoever make FO loss (my case 32K loss) who has Salary more than 10 LPA has to get audit? Because profitability is always going to be less than 8% of total income (salary+FO loss)…That is , because Salary income is already above BEL , if someone makes loss in FO he is going to get audited?

Please clarify this…Thanks in Advance…

yes…total income including f&o income is more than BEL in your case and f&o income is less than 8%…so you need to get audited…

how much is your turnover…??

Hi chaitanya_maganti,

My turnover is around 30 K (approx)…

Hi Chaitanya,

What is the BEL value for FY16-17 (AY17-18)? Is it 2.5 lks or has it been increased. Also, if I have salary income less than 2.5 lks and F&O loss (turnover is approx 5 laks), then which ITR I have to file - ITR3?

Regards
Madhumita

Is it mandatory for an assessee to calculate turnover/ gross receipt/ gross profit by this method “for intraday and F&O the absolute value of profits and losses is your turnover.” ?
and
In case assessee is a salaried person and have suffered losses in F&O and gain in intra day. Can he/she show the net of both as his/her net profit under no account case?

kindly reply asap

1 Like

"If the turnover is less than Rs 2 crore, and if profit is more than 6% of turnover and total income exceeds basic exemption limit of Rs. 2.5 lakhs."
Here the profit is more or less than 6% of turnover. You said if its more than 6 %, somebody else said if its less. I am confused. Please clarify.

A mandatory audit is required by an assessee by a CA in the following cases:

(a) their total trading turnover for the year is above Rs. 2 crores or profit is more than 6% of the turnover;
(b) If the turnover is less than Rs 2 crore, and if profit is less than 6% of turnover and total income exceeds basic exemption limit of Rs. 2.5 lakhs.