Is there any transaction turnover criteria since there’s no mention of it.
There are no transaction turnover criteria in the case of treatment of Equity Delivery Trading. However, turnover criteria apply while determining the applicability of tax audit.
Hi, I have question on expenses claim on F&O.
I read that “Expense like stationery expense, printing expense, tea coffee expenses, etc. is a valid deductible.”
Is this applicable only when we setup an office and trade in office ? or Just trading in our home is fine for these expense claims if at all proportionally at least ?
Hi @Tamil_143
You can claim all the expenses that are directly related to trading. So if these expenses are incurred while doing trading activities you can claim the same.
So if you are working/trading from home and incurred such expenses you can proportionately claim the expenses. However, the onus is on you to prove that the expenses were incurred for the business/trading when asked by IT Department.
You can refer to the below article for a detailed list of expenses you can claim.
Hi.
I’m currently a salaried person who trades a bit in Equity and F&O. I m considering to have this as my full time profession but I do not want to quit my job immediately and do it. I’m in 30% tax bracket. I’m considering to register a company in either mine or my wife’s name and open a Dmat plus trading account in name of that company. Now, the source of funds to the company will go from my savings so far. I want to understand if the profits in that trading account will get added to my income and taxed at 30% straight away or will they be treated separate. I understand the concept of individual vs entity but i’m asking this because I will feed the money into the company. I understand there is a clause in IT Rules which says if a husband gives money to house wife to house wife to trade then the profits made from her trading activity are clubbed with income of husband and taxed at his slab. Hence I m asking this question.
Thanks in advance.
Hi Team,
If I am paying GST(for shop) under the composition scheme, Can I do intraday trading in Equities, Futures & Options?
Hello Guys,
I am currently trading in the options segment of the market with a capital of 4L and have been consistently hedging and making about 40k avg profit per month for the past 4 months.
I would like to understand how to calculate my tax liability since I have been reading that income tax for options is calculated based on turnover.
Hello @Anand_Krishnan,
Trading from Futures & Options is considered as a business activity and hence taxed under the head Income from Business & Profession and the tax rate applicable is slab rate.
The turnover will not have any impact on the tax, although it is needed to check if Tax audit is applicable or not.
Hope this helps!
Hi TaxQnA team,
I have formed an LLP which has registered for GST and required to file monthly / quarterly returns (Form 1 and Form 3B).
For this purpose, its unclear if I’m required to file a NIL GST return, since the LLP is purely investing / trading in Equities + F&O, with no other business transaction (i.e. sale of goods and services) ? Or do I need to mention the trading turnover in the GST return, as per the methodology cited below:
Thank you very much for your reply.
how is it possible ? how did u manage to form the LLP ? Because , as per the below link ; it is not possible !
Well, the primary objective of the LLP is not to invest. or pool funds from others. I’m just describing what the LLP is doing at the moment, which is investing / trading.
but . is this allowed ?
i mean : primary objective is something else . and . the current functioning is something else !
can there be any problem in the future in this type of setup ? @Bharti_Vasvani @Sreetama_Chakraborty
i am fulltime intraday trader in NSE !
can i also open a LLP ; like @karan113 has done ?
@karan113 can u pls guide me how did u manage to open the LLP ?
I don’t think you’re in a position to comment on my business objective and functioning which are completely aligned.
Yes . I just request u to guide me how do i open llp .
I m intraday trader in nse .
Request u if u can share ur wisdom
Hi @HIREiN,
Quicko is a tax planning and filing platform. We can help you with your taxes.
We are not sure about this particular question.
Hi what about the dp charges… Can we claim them as expenses in stcg tax calculations for stocks.
Hi @s_p2
Yes, when it comes to DP (Depository Participant) charges, they are considered as transaction costs associated with buying or selling stocks. As a result, you can claim them as expenses while calculating Short-Term Capital Gains (STCG) tax on stocks.
If we take business loan for trading, whether the interest expense on load be claimed for income tax?