Hi @sachinsp15
The private limited company is assumed to have many tax advantages. There are some industry-specific advantages, but taxes are to be paid at a flat rate of 25% or 30 % on profits (as applicable), also Minimum Alternate Tax (MAT) applies here.
Moreover, To pay taxes on 22% there are so many conditions u/s 115BAA which should be complied and company cannot claim so many deductions here which are generally allowed.
Furthermore, To incorporate the company having main objective of trading you need to get an NBFC license from RBI. Also there are so many year around compliances which needs to be followed for every PLC.
Talking about tax holiday scheme for startups, there also company needs to satisfy the eligibility criteria for claiming this benefit and also obtain certification from the Inter-Ministerial Board setup for eligible purposes of a company.
If you can manage to pass through all those conditions, then only it would be wise to trade in F&O segment as a registered Pvt. Ltd. Company.
My mother is a housewife with no earning. I gave her 6lakh in 20-21. She traded fno and lost 3lakh. As per my understanding gifts from relatives are non taxable., which means she does not have any income. Is an audit required?
In this case the total income of taxpayer is less than basic exemption limit. So if the turnover from FO trading does not exceed 10 crore then tax audit is not applicable.
You can also check the tax audit applicability using this tool.
You can set off Futures & Options losses against your FD & Savings Interest.
Moreover, Tax audit is not required for setting off the losses. However, If you fall under any conditions of tax audit applicability then you might have to get the tax audit done.
You can still file the return on Quicko.
You can refer to these articles to get the complete understanding
Thank you mam for clarification
One more doubt mam
My total turnover is 50 lakhs and profit 80k (excluding deduction like brokerage internet etc)
Which itr should I file
Am salaried and trading in fno
Since you have trading in F&O you are required to file ITR-3 form.
Income/Loss from F&O is treated as a business income/loss and is shown under the head PGBP (Profits & Gains from Business and Profession)
hi,
will audit will be applicable in my below case ?
i have f&o loss, (f&o turnover below 25L)
have profit in other business
So, after I adjust the profit of other business with f&o loss, so, my earning is above 2.5L limit,
So, will I need to do an audit, even after adjusting the f&o business with other businesses?
if, audit is applicable, than can i show this turnover of f&o as 6% gain, to avoid audit?
Audit u/s 44AB shall be applicable when turnover exceeds the limit INR 10 Crores from AY 21-22 if the cash receipts and payments don’t exceed 5% of total cash receipt & payments.
As regards, F&O Trading, it shall be considered non-speculative business income and the turnover of the same needs to be considered. The turnover from F&O shall be calculated as follows:
Total of Profits & Losses (Add both of them, ignore negative)
Premium received on Sale of Options.
Difference of Reverse Trades.
Also, you have mentioned you have profit in other business, so you need to add the turnover of that business also as the turnover limit is “Assessee wise” & not “business-wise”.
If the total turnover exceeds the threshold, then the Tax Audit u/s 44AB shall be applicable.
However, if the profit declared is below 6% of the turnover, then the assessee having a business income is mandatorily required to get his books of accounts audited u/s 44AB.
suppose combine all turnover is 20L,
so, should the combined profit needs to be above 6% (loss in f&o+other business profit)
or
Does each individual one have to be above 6% like, like fn0 profit above 6% as well other business profit above 6% ?
As the combined turnover of all businesses is checked and if the same exceeds limit u/s 44AB, then audit shall be mandatory.
Also, when section 44AD is opted i.e. Presumptive Scheme for Taxation, the profits in totality should be above 6%/8% in relation to the combined turnover of all businesses and not the individual profit of single business.
Hi, as Angel Broking provides only Scrip-wise turnover data, so how to calculate it? Also, what documents to provide to a CA for tax audit calculations?
Hello,
For FY-20-21, my F&O turnover is around 8 Cr and I I have incurred losses of around 5 lacs.
I am also having a salaried income which falls under taxable slab.
Do I need a tax audit??
Is audit required to carry forward these losses in next FY??
Can I set off these losses in my current ITR against tax deducted from TDS ( due to income from salary & FD’s)??
intraday profit 55000 turnover(56000)
short term (-35000)
charges (-27000)
futures (-10000) turnover(10000)
options (-592000) turnover(5700000)
charges(-47000)
net loss is (-656000)
salaried person more than 2.5l
do i need to audit to carry forward loss or else can i file in itr itself
as turnover is less than 1 crore but total income(salary) is greater than 2.5 l do i need audit?
if audit is required is zerodha or quicko provide this service and on average how much it costs for audit
thanks in advance
I’m a salaried employee with more taxable income of 6 lakhs after all deduction around
I traded in FnO for the first time and made a loss of 31k and turn over around 32L
I also made short term gains of 10k
Intraday I suffered a loss of -1.36K and turn over was just above 3k
Which ITR should I file? and Is the audit required since I have crossed FnO threshold
and my form 16 doesn’t contain the NPS in which I invested (march 31 2021) , can I specify that now?
