AMA: Beginning of the Financial Year

We have all ushered in the new Financial Year. But the coming of the New FY might also bring swith it certain questions

Which Tax Regime to choose?
The Old Tax Regime offers various itemized deductions while the New Tax Regime offers a lowe tax rate. So which of these suits your income situation and financial goals the best?

When to submit Form 12BB?
You need to submit Form 12BB at the beginning of the Financial Year declaring your planned investments to your employer. Based on these declarations, your employer will deduct TDS.

When is the right time to make tax-saving investments?
It is best to start making tax-saving investments from the beginning of the Financial Year. Think through your portfolio, analyse your financial goals and start making investments early on to avoid any last-minute mistakes

When is the due date to file ITR for FY 2021-22?
The due date to file ITR, when Tax Audit is not applicable is 31st July 2022.
In case Tax Audit is applicable, the due date to file ITR for FY 2021-22 is 31st October 2022.

Got any other questions? Shoot’em?

i bought nifty future on 25th march . sold it on 5th April .

my query is : which F.Y. the turnover will be calculated and which F.Y. the P/L will be taken ?

@Sakshi_Shah1 can you please help?

Hi @HIREiN

Income would arise in the year in which the asset is sold. For purpose of income tax, both turnover and P/L would be calculated in the financial year in which 5th April falls.

so . if . the situation is reverse . like e.g.

i sold nifty future on 25th march . bought it on 5th April .

then , in this case , the both turnover and P/L would be calculated in the financial year in which 25th march falls.

correct ?

@Sakshi_Shah1 can you please help?

Hi @HIREiN

In this case, this is short sell. The trade gets squared off on 5th April. For purpose of income tax, both turnover and P/L would be calculated in the financial year in which 5th April falls.

in both the scenarios : i.e.
scenario 1 : if buy nifty on 25th march and sell on 5th april .
scenario 2 : if sell nifty on 25th march and buy on 5th april .

===

turnover and P/L would be calculated in the financial year in which 5th April falls .

right ?

@Sakshi_Shah1 can you please help?

Yes. Since in both the cases, transaction is squared off in that year.