If i make more than 50 lacs from a Trading stocks & show it as a Business. then i need to file ITR-4s right.
now my simple question is now i am in higher tax bracket.(aprox 13lacs as per tax bracket) How much % of this 13 lac i can safe legally if i show business expenses like (rent/electricity bill/salary etc) ??
If you fall into the highest tax bracket (30%), you will save (30%+Cess 4%= 31.2%) on expenses. Since expenses shall reduce the amount of income and eventually you will have to pay lower tax.
For example: If my income before claiming expenses is INR 20,00,000
Hey, here’s how you can prepare your balance sheet on Quicko.
In the Filing tab, navigate to INCOMES > BUSINESS & PROFESSION from the side nav
From Summary Screen navigate to Financials
Click on Prepare Your Balance Sheet
Add Assets and Liabilities
Click on Save
I have been showing both LTCG & STCG as business income and have been paying tax according to the tax slab I fall in. But in the upcoming days, I will be taking up a job with Fin Ministry, a central govt job. Since no business is allowed while on the job, I will be having only LTCG from now on and no intraday and F&O, once I join the service. So from FY24, can I show LTCG as capital gains and pay flat 10%, rather than the tax slab I am paying right now (and 15% for STCG, if any) ?
As per the law, no government employees are allowed to speculate in any stock, share, or other investment.
When you file your return for FY 2023-24 you can report your trading income under the appropriate head (considering this income earned is when you were not a government employee). It will be incorrect if you report intraday and F&O under Capital Gains (LTCG or STCG).
Yes, I will not be speculating once I join the service. But till now I have been reporting LTCG as business income to claim business-related expenses. But from then onwards, I must report LTCG under capital gains ONLY (and can’t claim expenses), right?