How soon can we expect Quicko to introduce a IT Filing platform, which will help in tax calculation for Derivatives trading.
After all regardless of the broker, the PAN Card number is the same.
If you can provide a way by which Income tax department provides u with the permission to calculate the derivative profit and loss on quarterly basis, and notify every single PAN Card holder, would it not make it easier for people to file returns.
Also, what is ur view about the 5 crore limit for Presumptive Tax. Is this justified for Derivative traders, who normally trade 1-2 crores per day. Such people would never get the benefit of SEc 44AD/ADA.
When Income tax department sends noticed based on the size of turnover v/s size of file, is this not incorrect. After all, the definition of Turnover in the physical sense and the derivative sense are completely different.
Your thoughts please…
We completely agree, and one step taken by Finance Minister Nirmala Sitharaman in Budget 2020 was to increase the limit for Tax Audit from 2cr to 5cr in Budget 2020.
As rightly said by Nithin (Founder Zerodha), one main reason for non-compliance by traders when filing ITR is this audit requirement which makes the entire process of tax filing a lot more complicated and expensive for a retail trader.
Hence, more needs to be done to encourage capital market traders.
Recently, CBDT has partnered with SEBI to curb tax evasion. With access to the trading data, ITD can now keep an eye on tax-evaders by sending out scrutiny notice for non-disclosure of income.
On the brighter side, the IT Department can pre-fill data of trading transactions in the ITR making tax filing simplified for traders and investors.