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Security traders can declare 6% of the turnover), then you will be required to file ITR 4. However, you will be required to file ITR 3 if you declare your F&O income as presumptive business with capital gains. When you declare F&O income as presumptive business, and you have capital gains also, ITR 3 is applicable.
- Easiest way to file income tax returns for traders ... - ClearTax
Trading income can be declared as per presumptive taxation...
- F&O Taxation in India: Everything an F&O Trader Should Know ...
F&O traders have the option to pay taxes under the new tax...
- Easiest way to file income tax returns for traders ... - ClearTax
Trading income can be declared as per presumptive taxation as well, if the turnover is less than Rs. 2 crores (Rs. 1 crore till FY 15-16). If you have earned high profits from trading then it is preferable to opt for presumptive taxation and declare 8% (6% from FY 16-17, if receipts are in digital form) of your turnover as income as pay tax on ...
Jul 6, 2024 · Step 1: Go to the e-filing portal > File ITR > Select assessment year (AY 2024-25) > Select ITR form (ITR-3 for trading income). Note, if you have just capital gains on sale of equity shares and mutual funds, you need to select ITR-2. Step 2: Select the reason for filing the ITR and proceed.
Quicko is an income tax planning, preparation & filing platform. We have partnered with India's leading brokerage platforms to simplify Income Tax Filing for traders. If you trade Futures & Options, Equity, Intraday or Commodities, you can file ITR 2, ITR 3 & ITR 4 online simply by importing your Tax PNL.
- Quick Recap
- Taxation of Trading/Business Income
- Carry Forward Business Loss
- Offsetting Speculative and Non-Speculative Business Income
- What Is Tax-Loss Harvesting?
- BTST (ATST) – Is It Speculative, Non-Speculative, Or STCG?
- Advance Tax – Business Income
- – Balance Sheet and P&L Statements –
- Turnover and Tax Audit
- Key Takeaways from This Chapter
Reiterating from the previous chapter – 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. We also discuss...
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 a...
If you file your income tax returns on time July 31st for non-audit case and Sept 30thfor 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 b...
Speculative (Intraday equity) loss can’t be offset with non-speculative (F&O) gains, but speculative gains can be offset with non-speculative losses. If you incur speculative (intraday equity) losses of Rs.100,000/- for a year and a non-speculative profit of Rs 100,000/-, then you cannot net off each other and say zero profits. You would still have...
Towards the end of a financial year, you might have realized profits and unrealized losses. If you let it be, you will pay taxes on realized profits and carry 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 goes away as taxes. You can ver...
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 speculative, similar to intraday equity trading? There are both schools of thought, one wh...
Paying advance tax is important when you have a business income. Like we discussed in the previous chapter, the advance tax has to be paid every year – 15% by 15th Jun, 45% by 15th Sep, 75% by 15th Dec, and 100% by 15thMarch. I guess the question that will arise is % of what? The % of the annual tax that you are likely to pay, yes! When you have bu...
When you have declared trading as a business income, you are required to like any other business to create a balance sheet and P&L or income statement for the financial year. Both these financial statements might need an audit based on your turnover and profitability. We will discuss more on this in the next chapter.
When is an audit required? An audit is required if you have a business income and if you have business turnover is more than Rs 10 Crores for a financial year (FY 24-25). For Equity traders, an audit is also required if they are opting out of presumptive taxation scheme as per Section 44AD and declaring a profit less than 6% of the turnover and tot...
Speculative business income if trading intraday equity.Non-speculative if trading F&O, or short term equity delivery actively.Speculative losses can’t be set-off against non-speculative gains.The advance tax has to be paid when trading as a business –15% by Jun 15th 45% by Sep 15th, 75% by Dec 15th, and 100% by Mar 15th.F&O traders have the option to pay taxes under the new tax regime outlined in Section 115BAC of the Income Tax Act. Should F&O traders opt for this new tax regime? It is important to consider the following key points under the new tax regime: The tax liability will be calculated based on the slab rates introduced in the new tax regime; F&O ...
People also ask
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Feb 3, 2024 · Since intraday and F&O transactions are 100% digital in nature, the turnover limit for a tax audit is ₹10 crores for traders. How to file taxes as a trader? Filing taxes is a crucial step for traders, and if you fail to file your ITR before the due date, you won’t be able to carry forward losses.
