You can classify yourself as an Investor if you hold equity investments for more than 1 year and show income as long term capital gain LTCG. You can also consider yourself an investor and gains as short term capital gains STCG if your holding period is more than 1 day and less than 1 year.

In this chapter we will discuss on all aspects of taxation when trading is declared as a business income, which can be categorized either as:. Unlike capital gains there is no fixed taxation rate when you have a business income.

Speculative and non-speculative business income has to be added to all your other income salary, other business income, bank interest, rental income, and others , and taxes paid according to the tax slab you fall in.

You can refer to chapter 1 for tax slabs as applicable for FY In order to find out my tax liability, I need to calculate my total income by summing up salary, and all business income speculative and non-speculative. The reason capital gains is not added is because capital gains have fixed taxation rates unlike salary, or business income.

Now, I also have an additional income of Rs. I hope this example gives you a basic orientation of how to treat your income and evaluate your tax liability. We will now proceed to find a list of important factors that have to be kept in mind when declaring trading as a business income for taxation. If you file your income tax returns on time July 31 st for non-audit case and Sept 30 th for audit case, you can carry forward any business loss that is incurred.

Speculative losses can be carried forward for 4 years, and can be set-off only against any speculative gains you make in that period. Non-speculative losses can be set-off against any other business income except salary income the same year. So they can be set-off against bank interest income, rental income, capital gains, but only in the same year.

You carry forward non-speculative losses to the next 8 years; however do remember carried forward non-speculative losses can be set-off only against any non-speculative gains made in that period. In such case my tax liability for the year would be —. I have a non speculative business loss of Rs. If you incur speculative intraday equity loss of Rs. I can carry forward speculative loss of Rs. Also to reiterate, speculative business losses can be set-off only against other speculative gains either the same year or when carried forward.

Towards the end of a financial year you might have realized profits and unrealized losses. If you let it be, you will end up paying taxes on realized profits, and carrying forward your unrealized losses to next year. This would mean a higher tax outgo immediately, and hence any interest that you could have earned on that capital which goes away as taxes. You can very easily postpone this tax outgo by booking the unrealized loss, and immediately getting back on the same trade.

By booking the loss, the tax liability for the financial year would reduce. We at Zerodha are the only brokerage in India presently giving out a tax loss harvesting report, which will spot all opportunities for you to harvest losses.

Click here to learn more. BTST Buy today Sell tomorrow or ATST Acquire today sell tomorrow is quite popular among equity traders. It is called BTST when you buy today and sell tomorrow without taking delivery of the stock. Since you are not taking delivery, should it be considered as speculative similar to intraday equity trading?

There are both schools of thought, one which considers it to be speculative because no delivery was taken. A factor to consider is if such BTST trades are done just a few times in the year show it as STCG, but if done frequently it is best to show it as speculative business income.

Paying advance tax is important when you have a business income. When you have a business income you have to pay most of your taxes before the year ends on March 31 st.

It could be more or less. The best way to pay advance tax is by paying tax for that particular time period, so Sept 15 th pay for what was earned until then, and by March 15 th close to the year end, you can make all balance payments as you would have a fair idea on how you will close the year. You can claim a tax refund if you end up paying more advance tax than what was required to pay for the financial year.

Tax refunds are processed in quick time by IT department. You can make your advance tax payments online by clicking on Challan No. Also, here is an interesting link that helps you calculate your advance tax — http: You can also check this link to see how exactly interest or penalty is calculated for non-payment of advance tax. Both these financial statements might need an audit based on your turnover and profitability.

We will discuss more on this in the next chapter. An audit is required if you have a business income and if your business turnover is more than Rs 1 crore for a financial year. For equity traders, an audit is also required as per section 44AD in cases where turnover is less than Rs.

There are various types of audits prescribed under different laws like company law requires a company audit; cost accounting law requires a cost audit, etc. Ideally this audit should be done by the IT department itself, but considering the number of balance sheets out there it is surely impossible for IT department to audit each one of them. You the tax payer can use any CA of your choice. We will in the next chapter briefly explain how a CA typically creates these two statements.

It also helps lenders evaluate credibility, and act as a check for any fraudulent practices. Which ITR form to use? I have come across incidents where people have declared both speculative and non-speculative as capital gains to avoid having to declare business income, and not having to use ITR3.

Taking a shortcut like this could mean a lot of trouble if called for an IT scrutiny. Business expenses when trading — Advantage of showing trading as a business is that you can show all expenses incurred as a cost which can then be used to reduce your tax outgo, and if a net loss for the year after all these costs, it can be carried forward as explained above.

Disclaimer — Do consult a chartered accountant CA before filing your returns. Audit is also required as per section 44AD in cases where turnover is less than Rs.

I have two questions — 1 Is an audit required in case I am incurring loss and my turnover is less than 1 cr? But if your net income for the year is above 2. There is no need of calculating turnover for advance tax. Based on whatever profit you have made till the end of sept, dec, and March periods, just pay incremental tax accordingly.

Audit is based on your turnover. Since there is a loss and you fall under a tax slab, yeah audit is needed. Check all the chapters, audit is quite a simple thing. If I have a loss of 20, then i need to get it audited for which i will have to pay CA another , So more loss if you make a loss in trading. What a shame, Audit should not be there if there is loss. Advance tax is not required if income is computed under section 44AD; see Section of Income tax Act.

The taxes you are paying is transaction tax. Income tax still has to be paid. You need to add this 1lk to 3. Tax is not on the turnover, it is on the net profits only.

Turnover is to determine if you need a tax audit or not. Hi, Whether tax audit required in foll0wing case: Total trading turnover — more than 1 crore in FY , but incurred loss in trading. Also, total income in same year is less than 2. Is tax audit required? Also — as a valued added service , can Zerodha provide services of tax consultants to prepare file returns of traders?

My Salary is — Rs. In your case since no advance tax has been paid till now, for April 1st to March 31st point 3 below is applicable C and from April 1st this year till you pay the taxes point 2 B is applicable. For deferment of advance tax. The said interest is levied 0. Hey Krish, sorry if I suddenly sounded like a chartered accountant putting up this section of the act.. For advance tax not paid between April 1st to March 31st , 3.

Vishal, the penalty can be paid, but that will be black mark on your ITR. I have gone through your article about taxation. It has cleared many concepts. Can Zerodha provide any support for audit, CA? In such case, what advise would you give to beginners like me? I am salaried employee and I have been filling ITR1 form for last 2 years. I could find ITR4S form but not ITR4 form in my online account of IT filing. You have mentioned to use ITR4. WHat should I do in this case?

There are new ITR forms being put up this year, ITR4 is still not out, should be available in the next few days.

Audit requirement is based on turnover and not really on how much profit you earned. These numbers are from Q tool. In that case do I need audit? Omkar, currently not providing any CA support from Zerodha.

If you are in Bangalore you can contact Taxiq. You can use ITR2 in this case. If you have done intraday equity trading, then you have to show this as speculative business income and you will require ITR 4 and an audit.

Do I need an audit? I did a lot of intraday trades and no longterm investment. Just the profit and loss statment from start of november until now? Sir , How turnover calculated , i m govt employee under trainee presently my annual income is only Rs 1, , i started intraday from jan onwards on margin basis and presently up to july i m in net loss …so i need to pay any tax etc plz reply….. It is best to find out from your department if you are allowed to trade or not.

If you have made a loss, of course no tax to be paid. Also your annual income is also under minimum tax slab, so there is no tax you have to pay. No since you have no taxes to pay. In my case,as i did short term and intraday…I treat myself as trader. But in current F. Hi Sir, for AY it looks like there is no ITR 4. There is only ITR 3 and ITR 4S available. Turnover is less than 1 crore and am in loss of 1. Please advice should i use ITR 3 or ITR 4S. Please refer to the following: If you have no tax liability, there is no need of audit.

In your chapter on squaring off and settling call options, you had mentioned in the comments section that squaring off before the date of expiry is beneficial from a taxation point of view as opposed to waiting till the expiry of the call option. What is the tax benefit?

Thanks a lot for Zerodha varsity. Without Zerodha varsity, I would not have entered the stock market in the first place. I guess what Karthik was referring to by taxation is STT security transaction tax. STT on squared off option is 0. STT on expired in the money options is 0. Check this blogpost , explains about the same.

This information is vital to options buying! Maybe Karthik can include this in the main body of his articles in the call buying and put buying chapters, as this is so important.

Thanks a lot to both of you, as usual. Hi I had bought IndusInd Bank shares in IPO few years back, they were in physical form. In December I got them converted into Demat form and sold of few of them.

The Gains relaized are Long Term Gains, but if we look from my Demat account it shows Short term gain, has the Shares were not present in my Demat account before Dec and were sold off within few days after they were Dematrialized. Hi I had physical shares in my late Fathers name, they were with him for few Years. After his demise I have got them Dematrialized into my Demat Account.

They were part of Inheritance from my Dad, how would I show them in my Tax returns? If My 10lk trading account become 25lks at the end of financial year then how much tax I will be Paying?? If you make 15lks profit, Rs 9lks is your cost.

Then you would have made Rs 6lks net profit. You will have to pay Rs in taxes. Your Rs 9lks cost, I guess already includes STT. STT can be shown as an expense, but has nothing to do with your income tax liability. Hi, For the financial Year I have incurred a loss of 5,75, in Non Speculative Income. Whether I can declare my Loss in this Ass. Year and set off against the forthcoming Ass. Losses can be carried forward only if filed on time. Do check out the chapter on Turnover. Hello, I have Recived Noties — Non Filling of Income Tax return..

FINANCIAL YEAR —- Contract of Rs. He never filed return of income. You would have to just meet the income tax officer, and take it forward from there. Sir, when we are declaring profits of mutual funds or equity delivery as business income; we still have to mention about that under capital gains head in itr4 right?

It should be treated as business income itself. Checking with the Mumbai team. Best way would be to leave your number here: I have some speculation business gain during last year. I will use ITR 4. Please tell me about following info in ITR…….. Where exactly shall I show my speculation gains? I have pension income — do I need to give employer name , address etc.? Nature of business can be , Trading-Others Code: Schedule BP, point 2a. Pension will come under the salary head itself.

So Point 1 in Schedule S. Can you please help me in computing my Tax Liability? Looks like you have around 7lks of business income, 75k of speculative loss, so around 6. LTCG is exempt from taxes. But since you have invested in PPF, it will be lower than this. Check the first chapter on how to classify yourself. Short term equity trades if the frequency is high, it can be shown as non-speculative, otherwise as STCG. Thanks for putting up this page.

What documents do I need to get my trading audited and where can I download them from the backoffice? Also check this link: Hi, I have done delivery based trading in FY in which I have about Rs.

My frequency and no. Hi I also done speculative intraday trading in which my loss is Rs. My income for salary is Rs. Now I went to a CA and he is telling me that audit is not applicable to me as delivery based trading done by me is investment.

My turnover in delivery based trading is 95 lacs and for intraday trading is 9 lacs. What should I do? Ankit, Intraday trading is treated as speculative business income. Is there a limit on rental expense? Sec 80gg says max Rs. I stay in a rented appartment with family, but one room which owner has given me separately for pm. Agreement and receipts are there.

So can pm be shown as expense. I am self employed. Should i file tax this year or next year? Do i need to pay advance tax? All filing of returns for the period April 1st to March 31st will have to be done next year. Yes, advance tax will also need to be paid. Do read through the other chapters as well.

Hi Nithin , I have done few trades and my total turnover fro FY may be more then 1 Cr but my income from the same is less then 2. In that case may i need to file normal ITR or Audited ITR? You will need it to be audited if you have any tax liability i. I have recently completed my MBA, prior to which I had worked and filed my returns. During the past year I had no income. I did some trading and have losses of around Do I still have to file returns if I had taken a year of education break?

Can I show these losses for next assessment year if I do not file returns this year? Arijit, you are not forced to file ITR, but I think it is best to do.

In such a case, you will have to unnecessarily take the effort of explaining the ITO. If we have missed filing returns for a year, can we file it in the subsequent year? I am filing ITR 4 for the first time and have some confusions. Really appreciate if you can help me with this. I have below income. Salary income Intraday loss of 1. Is that a right place? Is that a right place to add? Also, is there a place where I can show split up of other expenses?

Hi Nithin, I got a notice from IT that my return related to intraday loss carry forward is incorrect. Please check the attachment for exact note from IT department. Below is what I updated in the ITR-4 xls file: Profit and Loss sheet: In Section 53c, entered expense total as 1. Mayur all income generated from April 1st has to be filed only by next year July. Currently you have to file only for the time period between April 1st to March 31st Intraday trading is speculative business, delivery is capital gains, u will need to use ITR4.

Do read through all the chapters of this module.

Pay tax without pain on stock market gains | Business Line

Mayur, can you go through all the chapters in this module: Now my CA has realised that audit is required. But he is still saying that my loss of Rs.

Ankit check the first chapter on classifying yourself, if you consider delivery based trading as a business u can add it to business loss. The thing to remember is to continue same classification next year as well, there has to be consistency in how you classify yourself.

I have delivery based trading with high frequency and consider it to be business loss. But CA is simply classifying delivery based as investment. My question is it going to create any problems? Also I left my job last year. So in this year my income will be only due to trading i. Ankit, best to reason this out and go with what ur CA says.

If it is really high frequency, it is better to show as a business income instead of capital gains. But since there is no definition from the IT department on what is higher frequency, so it should be alright. I want to know which ITR form should I use, Does tax audit required?

As I am planning to declare the loss for the first time. I tried contacting many CAs and other friends. But unable to get the complete clarity. As tomorrow is last date for filing and in case of loss carry forward. Kindly provide me suitable solution ASAP. I have done only option trading. Does STT and brokerage and other charges which are charged on a transaction have to reduced from the transaction value to arrive at sale and purchase price.

Lalit, the total gross profits can be shown as Receipts and Losses as Sales on ITR4. All STT, Brokerage etc can be shown as expenses. Maybe it will be good for u to meet a CA and take his help to fill the ITR4 form. For FY , I have a salary of , and Loss of , in FNO with turnover Rs. Do I need to file audited return? I have spoke with many CAs and everybody is giving diferent explanation. In your case it is quite tricky, if you have no income tax to be paid for last year, then no audit is required.

Taxation – How much tax do you have to pay from your profits? and how do you manage your losses? | ywepubuy.web.fc2.com

Income tax slabs come into play for salary above 2. Do speak to the taxiq team, or consult any other CA. How about commodities do they come under speculative or non speculative trades.

Adding profit values and loss values do i get my turn over. Hi, my CA has quoted me a price of Rs. It includes the price to get a digital signature for me. Is the price reasonable? Digital signature will cost you between Rs to Rs Hi Nithin I have not made any profit after 1 April Shall I still fill the Challan before 15 S2p ? SIR SUPPOSE I HAVE INVESTED IN STOCKS OF RS. Dear Nithin Damn confused by my tax audit requirements. Pls clarify whether i need an audit or not.

I have a salary income of 2,40, Int income of around 3. Turnover over 1 cr. Pls help me out. Since your total income is less than Rs 2. Since there is no tax to be paid, no audit is required. Do speak to a CA once. Just 1 more query. Can u help me out with the ITR form no i am supposed to file my return in this case?

But i cant find any option in ITR3 to state my losses. Do i need to file in ITR-4? Now assume that Trader has actually received only 4 Lakh as Actual Profit in his hands after deducting say other expenses like Trading fees etc. Now if Trader goes thru Audit thru CA and Auditor also says same 4 Lakh as the actual profit then whether trader now can pay tax on 4 Lakh at the rate of Please clarify on this.

Audit is fine but will that help here in this case to pay on tax on Actual profit with the audit. Because in this case say if we IT way calculation Tax would be more than actual profit received in the hand of Trader. I am not able to get what you are trying to ask. Can you go through a ll the chapters , we have one chapter on turnover and audit. Turnover calculation is only to determine if you need an audit or not.

How much tax you have to pay is based on the income tax slab you fall in. Yes CA fees can be shown as deduction. Also clarify when audit is done who has to file the return for the trader? What happens if there is profit in first 3 qtrs and loss in Qtr 4 and overall there is loss in the FY year at the end of the FY year.

If advance tax is paid for first 3 qtrs say and in the 4th Qtr loss is more than profit of Previous 3 Qtrs whether IT Dept will refund the advances paid as there is loss or will adjust it for next financial year. If advance Tax has to be paid then what form to be used for payment. Your CA will file your returns along with audit. If you end up paying tax and there is a loss, you can get a tax refund.

Sir, Could you please tell me if I am classified as trader then I have to pay tax for long term held for more than 1 year capital gains on stock trading?

No Sir, I have both gains from both long term more than days and also short term delivery based more than 1 day but less than days. So I think I would be classified trader. So which I have to pay tax on long term capital gains also?

Moreover I am a salaried person.

Hi Nitin thanks, could you please suggest me a good CA who can take care of my accounting and audit needs if required. I have a loss of 5 lakhs in derivatives and I am getting audit done. But I also happen to be a working professional and been filing only ITR 1 and 2 till this time. This time I am filing ITR 4. Questions — a Any consequence of filing ITR 4 viz a viz with my employment as they would not know about my trading.

Ur employer need not know of what ITR form you are using. I am an agriculturist. I have invested Rs 17 lakhs in FD at the rate of 8. I have not given form 15g to the bank. I have not paid any advance tax for this financial year and now I want to pay advance tax by 10th of October, Please let me know what amount I have to pay with penalty. Until october, your FD income will probably be around 1lk, you have 9. So total around 9lks net income for the year until now. How much you want to pay as advance tax will depend on you, since this is business of trading the year could end up either above this 9lks or below.

So I think it is best to be conservative, and pay a small amount as tax. Probably around Rs 50, Best to consult a CA for all of this. Sir,thanks for the previous answer, sir i want to know are there any kind of restrictions regarding selling of shares bought under IPO in India ,like can you sell them within one year?

And if there are any kind of restrictions or rules which brokerage houses use to prevent trading of IPO shares or from companies in India?

It is applicable per financial year. The idea being, if a person has received so much cash, he should definitely have income over 2. If someone is not filing, he is being non-compliant. I have received a notice from IT department for not filing the returns for the assessment year In the more information tab, it is mentioned STT sale of equity shares settled without actual delivery — for the financial year during financial year — , i was salaried 3. I have made only 2 intraday trades in equities during this period with a loss of 64 Rs.

Total purchase and sell value is less than Rs. If i not disclose this loss, will i be scruitinized? You will have to use ITR4, and no audit will be required. Also i would like to know what will be a book of account with regard to trading. What should be the entries in it? Will the zerodha statement suffice , or we need to maintain a separate one Regards Sreejith. IT department will have a problem if you declare less tax avoid tax , no one has a problem if you pay tax: Nithin Sir, Thanks for your advice.

The idea is that you are not avoiding paying any taxes by doing this. Best to speak to a CA also. Thanks a lot for the detailed explanation. I would definitely follow this site. The same year it can be setoff against any other business income. But when you carry forward the loss, based on what head on balance sheet you carry forward, it can be setoff against profits on the same head in the future years. Thanks a lot for the reply: Hi I have started a commission based business and my turn over is 2 to 3 cr monthly but my profits are per month so how should I show my business returns and turnover in income tax.

I even wanted to know this business comes under which business Reply ASAP. If you invest Rs this year, you can get benefit of upto this much as deduction before calculating tax. So if your income is Rs 5. So by investing 30, you save Rs which you would have otherwise paid as taxes.

This is locked in for 3 years, if you sell before that you loose the benefit that the ELSS gave you. Hi Nithin Sir, I do intraday trade scalping in Option Premiums…so for it is the only source of earning for me. Is there any procedure to declare it as a business activity or filing ITR 4 is sufficient??

I mean I come to know that Bombay Shop Act is required if you have to run business in Maharashtra. I am also running business but from my home itself and not from any other business place.. Do I require to have Bombay Shop Act License to declare my trading activity as a business?

ITR4 would mean that it is a business activity. No need of any Shop license for trading stock markets. Thanks for making me relieved……!!!! One more question Sir…In the evening I always get a message from Zerodha that your total traded value is 4 lakh or 5 lakh…this means soon I am going to cross 1 cr turnover limit….

Sir, I have been trading in Commodities market from last 3 years but unfortunately never filed ITR and now I have received Income tax notice for non filing of ITR I have been constantly having losses in Intraday trading, information is as per CIB It is best to meet a CA to respond to this notice. Since you have made losses, you could send an explanation.

Do read through the entire module, you should get an idea. I am a Zerodha trader. Yes, since you are doing intraday trading, you will need to use ITR4 and declare this.

Go through the module, it is explained how you can. Sir I got a notice from incometax department for not filling of tax I am a trader I have don intrady dilivery and comodity trading and having lose in all so what to do G I had not filled any itr I am a saleried person. You will have to go meet the ITO and explain him this. Since exchanges share turnover data with IT department, it is best to always declare. Dear Sir, Can we include trading account opening fees amount in business expense when showing trading as business?

Dear Sir, I have loss of 13k in fy,profit of 57k in Fy and loss 1. My client id is DS zerodha.. Dear Sir, thank you for your amazing articles on trading and taxation, it is a blessing for us. The best way to do is to MTM all open positions to 31st March, yeah even open option positions. The second statement appears to allow carry-forward. Assuming after offsetting your losses against all other gains this year, you have some losses still pending to be offset.

This can be carried forward for the next 8 years, but when you carry forward to the next year or more, it has to be offset against non-speculative gains only. Dear Sir, Whenever I transfer money in Zerodha trading account, Rs Is it ok to add this amount in my expenses towards my profit in trading?

Yes, this definitely is an expense. This is payment gateway charges. You can show all other debits as expense. Hi, my turnover is more than 1 cr, but I have made loss. Do I still have to get my book audited? I have an delivery volume of Rs 1.

So you will need to use ITR4 itself, and yeah best to get an audit done. Like I said, audit is quite a simple task. End of september is usually the last day for people with audit. If you are showing delivery trades as capital gains, there is no concept of turnover to be calculated.

You need to declare turnover only if you declare your delivery trades as a non-speculative business income. In case of delivery, the selling value of all your stocks add upto turnover. For intraday trading, you pay according to the tax slab you fall in. I just hope there are more entrepreneurs like you who possess such great qualities and values which our country urgently needs.

Once again thank you for the prompt reply. I have filled my eretun of F. Sir, i am an government employee having salary 4. You will have to use ITR4, and yeah you can carry forward the loss. Do read the entire module, everything you need to know is on it. HI, I have no other income and i am doing intraday trading since May 1st I would expect that my turnover will cross more than 1 crore but the profit will be less than 1.

I believe, i need not to pay tax as per tax slab 2. If i need to file ITR, what is the form no. Yes, no tax 2. No audit, because you have no taxes to be paid. Hi Nitin saheb, Thanks for your help. I am sure i dont need any audit for this amount. Which ITR form i have to use.. I have given my details below.. Trading is like any other normal business, you have to pay taxes as per the income tax slabs.

Do go through the entire module, has everything you need to know. Hi Nitin, Many thanks for such a wonderful content. The case studies are clear. Please add a scenario of having no other income other than trading and total income is less than 2.

I came with that doubt and clarified by the comments. Also the case of senior citizen, who need not to pay advance tax for STCG and only self assessment tax is required. You will need audit. But make sure to read through the entire module to understand what exactly is turnover.

Short term capital Gains Rs. If you are transacting in the markets, it is best to file returns. It will be super simple for IT departments to spot this, since exchange share trade details with IT department.

Yeah, you could show this as non-speculative business losses grey area, since this could also be considered as speculative since you are not taking delivery. But if your broker like Zerodha takes delivery of shares in ur demat and then sells it, it can be considered non-speculative.

Yeah, you could use ITR4S, but since you have no other income and just losses, there is no audit required, so best to use ITR4. You can even carry forward this loss. HI Nithin, I have salary income of Rs. I have life insurance of Rs. If I show loss, will I require to be audited.

Sir, I am pensioner having pension income Rs. Under Section 44AB of IT Rules written as if turn over is less than Rs. Kindly advice whether i Audit is required in this case ii ITR-4 can be filled. Dear Nitin, The entire Varsity concept and execution is extremely helpful. Brilliant initiative — thanks for this.

God bless you and your team! Does she have to file income tax return if total turnover is less than 1 crore? Does she have to file income tax return if total turnover is more than 1 crore? Does she have to get the books audit? Yes, best to file ITR4. IT department is sending notices if there is any trading happening and not filing ITR. Since here salary is not in tax bracket and no taxes to pay, no need of audit.

She did get a notice for Day trading has to be shown under speculative business income on ITR4, short term trading yeah can be as capital gains. Please help me understand. Thanks for very fast reply.

Tax slab rate for 2. Sir, You are doing a great job. I had given money to my wife. And she has used most of it in share trading and incurred loss. Can show it as loan and file loss in her return or better to show as income from other source and file return accordingly. Yep, you can show the money given to your wife as a loan, she can show the losses in her ITR.

She can carry forward the losses as well. Sir, I have done lot of deliveries, so which head mention it in business income or capital gain? Sir, i am filing ITR 4 as I am an active trader. I annual income from salary is 12 lacs.

No, long term capital gain is exempt from taxes. My turnover in intraday trading is less than 1 crore, and i have a loss of rs in trading, do in need to audit or maintain a book of account?

If your total income is over Rs 2. Dear Sir, Do we need to add expenses like brokarage, internet charges while showing loss in ITR 4.?? Dear nitin ji, My income from salary is , lost heavily in intraday trading during Jan to the tune of 10 lakhs, what shall I declare in itr4, I will be filling for the first time, please guide.

Thank you, can I carry forward the losses and how I will be taxed, brief indicative workout please. Along with the trading loss, you can add all expenses that you incurred while trading, and carry forward it to next 8 years. This loss can be set off against gains in the future. Since you have a business loss, no taxes on this.

You will have to pay taxes on your salary income though. Do go through the entire module. In last financial year , my total turnover is 1. If any audit required in my case or not? Which file I use for income tax return.

Sir, My wife salary was just 1. Never filed her ITR. Now CA has filed my return for ITR1 and ITR2. What should I do now as now I have to maintain books, he has shown income of more than 2.

He is not listening. Should I file my return again in ITR4. Ideally you should have filed using ITR4 itself. But you are not evading any taxes, so you should be okay. Check out the chapter on ITR forms. Thanks for the prompt reply. Why no audit as gross income is more than 2.

Pl sir this last query. Check out about ITR4S in this post. Suggest you to go through the entire module once. Yeah, you will need to use ITR4 technically and get it audited. But maintaining books and all is quite simple really. How to calculate profit and turnover in the following cases. Sold LIC 30 APRIl Put 6. You can either MTM this trade to closing price of APRILput on 31th March, or disregard this buy trade as part of last FY and consider it only in the FY where you exited.

Now the questions are … 1. Should I use ITR 4 Or ITR 4S is also acceptable? Will the three days back released govt. If this is acceptable I can save a lot really. Would you please give a detailed answer to this please…. Technically you could use ITR4S and save quite a bit of taxes. But this is a grey area, a loophole of sorts. Best to consult a CA. THis is not three days back, this option has always been there.

Check this chapter , I have explained about ITR4S. I am a trader. I am also a zerodha customer. I shifted from other account. Last year i loss 3 laks. How to file the returns.

I am salaried employee. Please advise me how to file incometax. I have a net profit of 1. You will have to pay tax as per IT slabs on your Rs 1. Pls do revert back and help me out. Sir, Last year I have filled ITR1 Saral that time I had only salary income.

Do intraday share traders need to register for and pay Profession Tax in the state they reside in? But if he were, then yeah he needs to be paying advance tax on your behalf. My PIS accounts are with Axis Bank, I am not sure if its collected by the Bank itself.

In case if they pay the advance tax, should I be getting a TDS certificate of the same, well before the due date for advance tax?

If i have a loss in intraday trading then, 1 is it necessary to audit it? If total income is less than tax limit, no need for audit. I am government employee. Is it offence in trading of securities in future and options by government employee by any rule?

Sir I am an Private employee and my salary is more than 6Lacs, I have made a profit in FY of around Rs. I have made a loss from Intraday and Short term trading in FY around so Which ITR should I use for FY and FY If you have carried forward from previous year, you have to pay advance tax only after setting off losses with profits.

Pujah, whatever you incur when trading can be shown as expense. Turnover is just for calculation purposes for if you need an audit or no, no need to put it on ITR4. I have a loss of almost in AY , while paying Advance Tax for AY , should i deduct this amount from the Advance Tax Payable to arrive at advance tax payable amount? I had a turnover of 85lacs And loss in fno is 8 lacs Is audit required?

Also if you could guide me where will the positive and negative turnover come in itr4 Specific line number please and the schedule name. Audit required if you have other income on which tax has to be paid. Positive turnover in receipts, negative turnover in sales. We have also started this http: Hi nithin If you could tell me where and which line in itr4 It would be helpful Thanks. Thanks for a great write up. If i have an amount of Rs 60, as interest from my savings account.

Then what will be the loss carried forward. Should I apply section 80TTA of exempting Rs 10, from my savings interest before offseting. So will my loss carry forward be Rs 40, or Rs 50, My wife is house wife with no income. If I trade in FnO and make profit of 1L then 30 percent tax slab is applicable. Is it same for her also? Sir I have to I m trading in commodity intraday tax is based on turnover or profit which we make..

I have just start trading what is perfect answer …. Sandeep, taxes is definitely based only profits you make. Turnover is to determine if you need an audit or not. I opened demat account in July and have purchased stocks. Suppose till the end of FY , I do not sell any stock. You will have to show application of funds drawn from your bank account, so yeah you will have to show your stock purchase.

Best way would be to use ITR2. Only on sale, purchase details are to be mentioned, to determine long or short term and gain or loss. Hi Team Varsity, Advance tax from AY has been changed to 4 times a year. Please update the same for the benefit of people following this chap. What is last date of return filling in my case.

First calculate your correct turnover for taxaton, check the chapter on calculating turnover. If turnover is less than 1 crore, you will not need an audit, but if more than that you will.

Hello Nithin, In fy I traded only in options options buying. No further other income, only the above 2 sources of income and also I have not any carried forward losses from previous years. Now do I have to go for tax audit, as I have made loss in trading??

Please reply as soon as possible. I have a loss of Rs 4 Lacs Delivery based Short term trading: JP ruined Me in Short Term Equity trading and loss of Rs. I assume that I need to file ITR4. Now that only ITR 4s and ITR 1 is visible in website, do i need to file ITR1. Or I wait for 2 months to file ITR 4.

MY Salary is Rs 15 LPA. Yeah audit required if turnover more than Rs 1 crore. THANK YOU, for your quick reply. Lastly, on behalf of entire stock market people i want to thank you and zerodha team. If turnover is more than 1 crore, audit is mandatory. But note that it is not contract turnover I am talking about.

Check the chapter on turnover. If turnover is less than 1 crore and you have no taxable income, then no audit required. Just asking last time. Please do reply 1. Can it be possible that i show my short term delivery equity trades with high frequency as short term capital income or loss.

Intraday has to be shown as speculative business. But other than STT you can show it as cost of acquisition. Yes, you can show it as improvement cost of the stocks you have bought. Hi I suffered a loss of 2. For this you need to first find out your turnover. If income over 2.

In your case it is 7. Will i be able to carry my short term capital loss for 8 years forward. As i said read through the chapter on turnover, have explained how to calculate 4. No, losses have to be filed within time to carry forward. But I still feel, these taxation is still a confusing and dauting task for layman. My income is net loss. Do I need to file the returns as I dont have a taxable income of more than 2.

If yes, do I need to file returns and ITR 4 is suitable for me? Even if there is no income, best to file returns. Yes ITR4, no audit since turnover less than 1 crore and no tax liability. Sir, i am carrying forward a loss of Rs 2,00, from FY previous year. This year FY I am having a net profit of 3 lakhs.

So now how much can I offset from this years profit. Any way 2,50, is exempt from tax. So can I just offset 50, and carry forward 1,50, loss to next FY. Or should I offset all 2Lakh and have no carry forward. Offsetting losses has to be done before calculating taxable income. So all 2lks will get offset. Don't you think this rule should be for good profit earners.

If you analyse all members data of zerodha , how many comes under loosing category? Highly appreciate if you share these details and try to escalate this ridiculous rule. You will have to enter speculative income details in schedule BP point 2a , this is net profit — charges. In the Profit and loss on ITR 4, show the combined profit and loss of all activity.

As soon as you fill the above schedule BP, the ITR form will automatically reduce the speculative from total. I am in diemma pls what shold i do. I think you should consult another CA. WHAT BOOKS AM I SUPPOSE TO MAINTAIN AS TURNOVER MORE THAN 1 CRORE. CURIOUS QUESTION why did you tell someone by name VAMSHI on july 16 at 3.

HI I have a LTCG of Is LTCG applicable for her or does she need to pay taxes on that due to high volume of fno trading in the account. Dear sir, i am zerodha trader with id RC,i got a letter for non filing income tax return for fy ,but till now all my capital is lossing ,for this fy i loss everything.

Nithin sir,here can i show only profitloss statement for those finanacial year to AO without CA audit. Sir, Your article on this tax matter is of great help.

I am giving two hypothetical examples only to clear some doubts about Turnover calculation in FnO after going through your module. Out of trading days in a year, he made Rs. So his net profit is Rs. And turnover is Rs. Have I understood correct? But turnover becomes much more as the premium received on sale i. Suppose the person trades with options trading at premium around Rs. So sale value of 1 lot option is Rs.

In trading days it becomes Rs. Then profit of Rs. About option turnover, the method I have spoken is the most conservative way. Check this post , has explanation.

I head that STT is something like prepaid tax. So, can we deduct that STT at the time of paying tax? For instance, I paid 10k rupees as STT all the year and at the end of the year, my I have to pay 1 Lack tax from my trading.

Now can I deduct this 10k and pay 90k as tax? STT is not a prepaid tax, but it is definitely an expense for you. If you have 1lk gross profit, you can reduce STT along with all other charges, and pay taxes on the net profit.

WHAT documents or statement does a CA need to do audit. Hi sir there is loss negative in mtm in toatal. But the turnover is exceeding one crore then what will be the tax implication kindly help me. Is there any ristrications or any special rules for central government employees to trade in stock markets?

Hi, I bought and sold shares in a particular financial year. Y, in April I had a loss of Rs. From July I began to incur loses. In July itself, I made a loss of Rs. And I just increased my losses from there. At the end of F. Y my loss from share activities stood at Rs. My question is whether I was liable to pay advance tax because I was in profit for the 1st 3 months?

I was also in profit in month of September, I made Rs. I would like to add that I was in a job at that time and employers deducted T. S from my salary regularly. But that was for my salary income only. Hi i am kiran Raj, i have one query regarding my income tax filing. If you make intraday profits, you have to pay according to the tax slabs mentioned in the first chapter of this module. Arun, you would have to do this manually.

This has all the charges: We will soon start showing this separately ourselves on the new Q that we are building. THANKS FOR REPLY on NRE account traading in short term can i get benifit up to 2. Hi, please consider this question. He suffered total loss of Rs. He went to C. A to get his return filed and found that he needs to get his books of accounts audited. He had every receipt and detail of transaction he had made though. He gave all the information as asked by C.

A and his audit was completed. His return was filed in due time Form 3CB. Now, the question is when this person asked that how he should maintain books of accounts, the C. A told him that it will only be required if income tax department raises any query.

So, this person is little worried as he has no books of accounts with him. What should he do? So like the CA said, nothing to worry. So, the turnover of Option trading cross assault 10 to 12 crore and volume of transaction is too high. I have done some intraday trading in F. Total turn over of 1. I only traded for 8 days as I ran out of money. I was unemployed but I received my P.

F amount of Rs. My question is, was I liable for an audit again? Audit is applicable only in case the turnover is more than 1 crore for FY So you are not applicable. In case you mean filing of return and not audit, then Yes filing Income tax return is mandatory and since your turnover is just 1.

For turnover of 3. Your CA can best guide you further with the procedure. I did specullative trading on that year and made a loss of around 4 lac rupees. My turnover was around 40 Cr rupees. I have opted for online assessment processing as my ward is Bangalore. Please let me know if this is sufficient.

I am bit afraid as what would happen now. If you have any idea please guide me. I filed IT return for that year as an NRI status as I was outside country more than days. This transaction of 40 Cr is on margin on regular daily trading.

My own capital involved throughout the year would be 4 Lac rupees. Still it need to be audited. Turnover is basically absolute sum of your profits and losses. I guess you just have to wait for the response now.

Sir, I am salaried person. When I filling IT return, I do not know to show intarday transaction in IT return. Then I got scrutiny letter from IT Office. My turn over is above 2 cores. Also I am in Loss in this year. What will be action taken by IT Office. Im in very deppressed mood. Best to file returns even if no taxes to pay. Yes Sir, I was already contact with IT officer he says that you must pay fine… Is it necessary? You should question him, fine for what? Tell him by not declaring the loss you have probably paid more taxes.

That said you will have to file a revised return. He bought shares worth Rs. He sold shares worth Rs. Is this person liable to pay any advance tax? He will probably sell rest of the shares too soon and his profit may reach to Rs. Will then he be liable for advance tax? This person has no other source of income as he is unemployed as of now.

Ankit, taxes in India applicable only if you earn more than Rs 2. If you think you will, yeah advance tax will be there. Hi , I have annual salary — 5L. I do merely lot of intraday in a year. If I made profit 10 Lakh in a calendar year on How much tax I should paid totally? I am Zerodha user. How can I get a 1 year transaction trading details in a single Pdf? If you make 10lk profit, add it to your 5lk salary, on 15lks you will have to pay taxes as per the IT slab.

To determine audit, you need to check out your turnover. Turnover determines audit requirement. Check out the chapter on turnover. Also whether gains from the intra day trading can be adjusted against short term delivery losses of the same year considering the all the activities under business. Yes, interest can be shown as expense.

Hi Nithin, I do regulary Intraday Trading.. My Salary Income is Below 2 Lakhs ,,, Due to using margins my turnover is above 1 cr. Himanshu, first check out how to calculate turnover see the chapter on turnover. If turnover is more than 1 crore, yeah you will need audit. Dear Nithin, Can you help in clarifying the following — If you buy a bond on zerodha and sell it in the same Fin Year , then a will it be taxed as income or as capital gain etc. Zerodha capture the taxation when I generate my tax statement c if you buy a bond which matures in 1 month and in other words, you do not sell i Will this also show up in Zerodha taxable profit Loss AND ii will there be any difference in its being treated as income or capital gain.

Short term capital gain. It varies from person to person. Treatment in terms of taxes may vary, you will have to research this based on the bond you are buying.

Sir, I have 1. What is my net taxable Amount. But if you declare STCG as business income, then you can setoff. I am getting 32k as HRA per month and paying 20k rent. Income from other sources? It can be setoff against other business income of yours. But like I have explained earlier, if you are doing very active short term delivery trades, you can show that as a business income. Do read through all the chapters. I would like to know how should I be calculating my tax — will it be, flat My Bank keeps holding Hi Sai, you will have to pay tax as per the IT slab.

Your bank will deduct based on highest slab as TDS, but you can file your IT returns and claim for a tax refund. Futher a small query, if i form a pvt. Thanking you in anticipation. You can show only related expenses as cost of improvement if STCG- things like transaction charges, cost of tips etc.

Rental, salary, etc will not really be possible. It has to be shown as STCG right? Am i missing something? You have an option to show your equity delivery gains as non-speculative business income. In which case you have to pay taxes according to normal tax slab. But in this case, you can claim all expenses related to your business of trading rental, internet, etc. Do go through all the chapters. Can you kindly let me know the relevant chapters? Will surely go through them. Thanks a lot for your time man.

I am a salaried professional and made a loss of Rs. No, check all the chapters once. NO need to pay if your income is only salary. Your company would be deducting TDS and paying. I do only cnc i. So should its intraday to be speculative income and that one which i do daily but sell next day of its puchase to be considered as speculative or non speculative as i m paying STT. Yes for speculative, sum of absolute profits and losses as turnover.

In my case my BTST is very very frequent so i think It should be shown as NON Specultive income instead of capital gains or speculative as given in chapter. My mother has no income other than this. But you can save in any tax saving instruments this Rs and save that tax on Rs Go through all the chapters, explained clearly. Excellent module on taxation. Please confirm my understanding. No tax on Liquid Bees as the gain is always ZERO there. Audit from CA based on business turnover and reported profit.

Btw, from this FY dividends are taxable if total dividend income above Rs 10lks per year. Short term equity investments can also be declared as capital gains if this is not extremely active. Trust it would be fine. Many Thanks in advance. Hi Nithin, First of all, thanks for your nice help with these articles.

These modules are all very helpful and very informative. Let me take my real life example to frame the question better. I have a net profit of Rs 20, till date in Short Term Equity Trading no intraday, mostly 1 week to 1 month holding period. Ideally I should pay an advance tax on this 20K. But I am also planning to take help from the Loss Harvesting. I have some other equities in my portfolio where I am making a loss more than 20K.

I did not sell them, I want to hold them because I believe they will eventually recover. This will offset the profit of 20K for this financial year. Secondly, if I do this offset just on 30th or 31st March, do I still owe a tax or interest to the govt for the 3 months period from now till March end?

Or is it okay not to pay any tax or interest as long as my net profit as on 31st March is less than 0…. I actually made this 20K profit in Sep-Oct. So I guess even if I offset the profit with a loss in March, the incometax dept would still expect me to pay an advance tax in Oct and then claim it back after the year end when I will show net profit as zero. So, not doing that would attract an interest charge to me. If I offset the profit, there wont be any tax payable — but what about the interest charge?

Will they zero down that or will I have to pay it? While calculating advance tax, you do it based on your assumption of income at end of financial year march 31st. If you think it is going to be 0 or lesser, no need to pay advance taxes. Which ITR should be filed?

I need to know whether Audit is required for me. I did Intraday trading in equity for months and incurred loss of about I also did short term delivery based equity trading and incurred loss of around Please look at the chapter on turnover, turnover is not trading volume, it is absolute sum of profits and losses.

I doubt if it will be Rs 2crores for you. Dear Nitin and Zerodha team, Please help me regarding my IT return. It is showing 0 everywhere. Please send me or tell me how can i see total charges details with breakup. Secondly please help me for following also. I had filed my return of F. Can i do so.? I hav following situation from trading of F. I had filed following return Income from PGBP and other sources i.

Gross total income— less: Sorry i am also CA but i am in job and hardly remember any provision now and law has changed much.

To carry forward a loss, you need to file your returns within time. But if you have missed out mentioning, you can still revise your return. If you can look at the chapter on ITR forms, I have shown what figures to show where. Since your turnover is over 1 crore for last FY, you will ideally need to get audit.

Do go through all the chapters of this module. No i have filed return in time but not mentioned losses. So now revising return with claim of losses. So my question is can i do so? Thank you indeed helpful i will check same.

No if you see my turnover is somewhere Rs. However please see my return part and then please advice. Suppose i am having other income from business Rs. You could increase your 80C or others to cover for this 80k increase in income.

Calculation of turnover, you could use an aggressive approach as well to reduce your turnover. I am a Government servant and I was trading during my free time regularly. For the year Assessment year I had filed returns like regular salaried employee as I have made losses in trading.

My taxable salary income was 11,36, after all deductions and I paid Rs 1,70, as gross income tax inclusive of Edu cess. My net loss from trading is -3,06, Am I required to pay taxes again. How to show them my traded details? From where I can download the accounts with my Demat account mentioned. Please provide the help.

Since you have lost money, there is no taxes you have to pay. I guess the notice is because you have not shown this trading business on your ITR. You will have to revise your ITR, use ITR4 and show these losses on them. Do consult a CA to fill this for you, nothing to worry about this.

You can use this to show the ITO that there was a loss. Boss i will be finished do u know? Since you are saying you have to get audit done. Please review your chapters as they are misleading most places and cause serious damage to public on ill advisory. Issue is so complex and views of different high courts are also different on treatment of derivative PL as speculative or non speculative. If I have no Salary income and have only profits from Short Term Capital Gain from Equity, Bank FDs, Dividends, adding all if I am still below INR 2.

Do I still need to file returns? Nice explaination, Since I am a CA Final Student I know how difficult to understand Taxation, I really appriciate how beautifully explained the whole post, and also appreciate work done by author. At starting, in the first paragraph , the total income example is shown of rs 1. You will be able to setoff only the losses that got carried forward, in your case 20lks. You will have to pay taxes on the remaining Rs 20lks.

Btw, losses can be carried forward only if you file your returns on time. Sir still now I nt file it return from to Their is any possible to file my loss previous 4 yrs back? I plan to restart my trading and avail 10L tax slab bracket for few years. I am trading since This cannot be true. Another one is like STT03 -sale of equity share settled otherwise than by actually delivery or transfer in a recognised stock exchange.

Does it simple mean that it was cash and carry forward condition. If thats true then its fine I would have carried some shares on delivery. I started doing my Job in Big MNC from Jan , Why I have mentioned the word Big MNC because I have not received form 16 from them for the year Although I have received form 16 for all the consecutive years until now and I have files all ITR f0r , , The result is I was not able to file ITR as I was the fresher in the corporate world , So I was not aware of this ITR stuff and all and also I have not received Form 16 as well while checking now in mails.

I am non complaint for ITR filing. The point is that will they not care about this? The 12 Lakh loss is like say 17 lakh loss and 5 lakh profits. Does it mean that 5 lakh would be taxable? I have also sent my documents to zerodha for new account opening. They have received it today in bangalore office. I can see in my past staements I have paid like lakhs brokerage alone to HDFC SEC.

I am repenting so much to not to witch to discounted brokerage firm. These big names costs a lot to customers like what airtel has done so far. If you have, then you will have to pay tax on that with penalty now. Again tax only if you made profits more than minimum income tax slabs then. Thank you very much! My Zerodha account will be opened on Monday EOD. I am so excited to trade with Zerodha! Hi Nithin , I came to know today that you are Founder and CEO of Zerodha. You are doing an excellent job!!!

This is to inform you that some backoffice account is opened for me now. So whilst trying to add funds in trading account , faced lot of difficulties.

Followed that screenshot uplaoding procedure too but that system is throwing some validation error even after 4 eye checks. I know this is taxation forum and I have added funds related query. Btw check out Zconnect for Zerodha specific queries. Stay active on these forums as it helps me stay connected with any issues. My question is if my wife does trading having income below 2. Hi, i have two doubts 1. Taxes have to be paid according to tax slabs.

Can you read through the entire module. For the first 2. If you are employed, you have to add Rs 5lks profit to your salary income and then pay tax according to the slab. Tax hike for people between 50 lks to 1 crore would be from next financial year.

My questions is If i sell these shares after PROFIT OF BUSINESS — RS. Loss on MCX can be shown as business loss, so 3. Do I have to pay taxes for the trading activity loss? If so, not sure if I have to declare a new business trader business and what is the code for that. Can I include loss from ? Can I get a link to Zerodha Video tutorials just like Zerodha Varasity modules from basics to advanced.

Sir, I have income p. I have not file ITR for this FY. But now I got the Notice from income tax department as non filer and showing these transactions are done through my PAN no. You should be alright. I do trading on a regular basis.

I got the Notice fromIT dept. Ah the IT department notice is just contract turnover, if you have bought 1lot of gold and sold 1 lot, that is 60lks turnover for them. I am planning to trade in the name of my father as I am government employee and speculative trading is not allowed. Kindly let me know who has to show capital gains in their ITR. My father has retired and has no source of Income.

Your father can file the ITR in his name. You can show the money from your account to your dad as a gift. It was a very helpful session today. Looking forward to session from CA to help fill up ITR4. Hi Sir, if i pay for CA to do audit an amount of Rs 12, to 15, — does that include for audit this year and also while filing for next year? Hai, I am new to trading. I hope I can pay the tax as per normal tax slab. My doubt is I have my savings in hand, if I am investing more than 3 lakh in the same year should I pay any tax.

If yes in what basis? And that income has gained for 5 years not exceeding every year in the income tax slab. Dear Sir, I have been doing this intraday trading for about six months on Zerodha the excellent brokerage Platform. I have been receiving awesome service support from concerned Zerodha personnel for which conveying my sincere thanks to all.

However ,I need a small clarification on taxation aspect. Accordingly the Net realized profit works out to —Rs 20, The turnover is working out to Rs 42, Realised Profit -Rs 8, Accordingly the Net realized profit works out to —Rs 35, The turnover is working out to Rs 64, As per the wonderful date furnished by Zedodha in Varsity,I will use ITR 4 form for submitting returns scheduled to be submitted before 31 st July I am a retired person and hence no other income like Salary.

Since the NSE FO profit of Rs 7, Please confirm whether my understanding is correct as above? Whether this NSE FO loss and NSE EQ loss can be set off against other incomes like interest,Rentals etc?

NSE FO loss can be. NSE short term trades overnight delivery trades if shown as a business income, can be. Request you to kindly rectify it. You can visit bo. You will have to manually calculate turnover and all. Hi Nithin, Thanks a lot for putting up this page!

I have a specific question. If, lets say, I have Shares of company X in my account which i purchased 6 months back. Now, today, I trade Sell first and then buy shares making a profit of total Rs.

At the end of the day, my account will continue to have shares and I come out with a profit of Rs. The question is, will this Rs. Although I understand that they are taxed the same way but I want to be sure that if after 6 months from today when I sell the balance shares in my account, will I count that as Long term 1 year capital gain or short term 6 month profit?

It will be treated as intraday profit. Yes, you can hold it for 6 more months and get LTCG benefit. Hi Nithin, I have 2 queries w. And now I am more confused looking at your reply to Vagisha just above.

This is regarding the technicalities in the way Tax Harvesting is to be done. I never did it till date. I had shares of Coal India on which I was making 4K loss.

I thought of adjusting the same against my other STCG profit. So today, I first bought additional shares and then sold shares. So my loss of 4K is not adjusted to my other STCG profits. How are we supposed to execute such trade in order to have it not fall under intraday? Should we sell and wait for a day and only then buy back? But in that case, we cannot ensure that we are getting the shares at the same price. But then it will be treated as intraday na?

If you see carefully, myself and Vagisha did it in 2 different sequences. We both had some shares in our demat. I first bought additional shares and then sold. Vagisha first sold and then bought back. Does this sequence impact how the transaction will be treated, or are they both considered as intraday?

If both are intraday, how do we do tax harvesting without a price-risk? What you can do is sell on one exchange and buyback on the other. In such a case, the shares are actually delivered to the other exchange. They are both intraday. Sell on NSE, buy back on BSE or vice versa. Thanks Nithin for the clarification. I would suggest to update the course material to highlight this use of 2 different exchanges for tax loss harvesting. It is a very useful suggestion which you provided.

I think the original course material does not have it explicitly written. Some new comer like me might get confused. Thanks for your help. The reason it is not written explicitly is because it is a grey area. Hi Nithin Sir, Kindly guide me about my quiry: I have income below 2. I know your income level is below the tax slab. AS PER VARSITY TOPIC —— Turnover and Tax audit When is audit required? HOW MY CASE IS AUDITABLE?? So yeah, you would need. AND YOU TELLING ME TO GO THROUGH AUDIT EVEN MY INCOME BELOW 2.

Hi Nithin Sir, rather taxation related to trading is confusing for ordinary people. PL advise if a person incurred loss in F ND O stock trading still he has to file income tax return. More over if he earns profit what percentage of profit he should deposit to Income authority. Apart from this what is turn over limit of trade to be audited in a FY.

Matter urgent please sdvice. Puja, if you can go through all chapters of this module, all your questions are answered. No quick answers to this. Yes even in loss, best to file ITR if trading on markets. Profit gets added to your income and tax paid according to the income tax slab. Can depreciation on car can be claimed as an expense while calculating taxable income from FNO trading? If you are not using car for trading, best not to claim depreciation benefit.

Hi, I have 2 questions 1 My turnover was 1. So, for a sake of argument , if I buy NIFTY shares and I sell and buy 50 times at the same rate — turnover is ZERO as oppose to INR Narang, turnover is not contract turnover. It is absolute sum of all profits and losses. So yeah, in that case it is 0, if you keep buying and selling at same price.

I really appreciate you taking your personal time and helping the community members with their queries most of the time repetitive queries.. People like you are are very rare nowadays. I wish i could be like you. If I BUY NIFTY shares and SELL and I repeat this times in a financial year. Do go through all the chapters of this module, everything explained in detail. I am having a short-term profit of Rs for this year along with a salary income. Last year, I had filed my IT returns on ITR-2 with Rs loss Total turnover this year: As there are changes done in ITR forms this year as per this link https: