Income tax for stock market traders
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- čas přidán 22. 07. 2024
- Whether you're a seasoned trader or just starting out, understanding the taxation of trading income can make a significant difference in safeguarding your hard-earned capital.
In this video, Vishvajit Sonagara, founder of @Quicko explains everything about taxation for traders. He explains why trading is considered a business income and what are the different ways traders can earn money in the stock market.
He further explains how is trading income taxed and the different expenses traders can claim to reduce their tax outgo. Furthermore, he explains how can traders set-off and carry forward losses. Finally, he covers audit applicability for traders and things they should know before filing their taxes.
#taxes #taxationfortraders #incometax #quicko #taxplanning #fnotrading #intraday
👉 Read and ask questions on income tax for traders here: qna.tax/t/how-are-profits-fro...
👉 Income tax for stock market investors: • Income tax for stock m...
👉 Everything about advance taxes: • Everything you need to...
👉 Taxes with Quicko playlist: • Taxes with Quicko
Chapters:
0:00 - Introduction
1:56 - Trading in stocks is just like any business
3:58 - How do traders make money and how is it taxed?
6:57 - Business expenses traders can claim
7:55 - Setting off & carrying forward trading losses
10:01 - Audit applicability for traders
11:52 - How to pay and file taxes as a trader
16:04 - Conclusion
👉 Learn more about Quicko: quicko.com
👉 Follow Quicko on Instagram: / quicko_official
A much needed video from Zerodha is finally here.
Good one
Please make more detailed video
Thankk you so much
Yes please we need more topics related to taxes as a trader. ❤
Thanks Prashant! Let us know what topics you want us to cover in our upcoming videos.
Thanks Vishvajit for sharing this information with us. It would be interesting to learn more about turnover. Looking forward to learning more about it.
We have taken a note of your suggestion. Stay tuned for more!
Thanks a lot... First again
Simple and loved it .found it very useful. Am a new trader. many thanks
Glad you liked the video!
What is the process to registered a company for trading & how is the tax slabs & document needed, can you pls create detail video
Best
Please make a detailed video of Presumptive taxation scheme for traders.. Thanks for yet another informative video..
Thank you for the suggestion. Stay tuned!
@@Quicko yes pls do
I started looking for taxation after starting a good amount every month in the market❤
Thank you
Yes we need more videos on Taxes on trading and investing
Hello Vijay, let us know which topics you want us to cover in depth in our upcoming videos.
Thanks for the video, please make a complete detailed video on Tax audit applicability
We have noted your suggestion, stay tuned.
Yes. Pls do a video on turnover for traders
Sir, Did you make detailed video on Presmptive taxation for Fand O income?
Good one. Please share the info on how to find actual turnover for knowing the audit appicability
We have noted your suggestion, stay tuned.
If heavy brokerage and various charges and taxes already taking all the profits and making trader always be in loss then why overloaded taxes again?
Sensible jesi website banane ke liye kaun kaun se document certificate ya licence hone chahie
please create one video on
audit applicable for traders
How to calculate turnover and purchase in f& o
And intra day
What about intraday f& o trading? does that come under non-speculative business income as well
Zerodha User Sir,, Option Retailer Trader 12.84L Losses How to File Itr 3 audit taxes?????????
Pls make a video on turnover computation for determining tax audit applicability and also presumptive taxation.
Thanks for the suggestion. Stay tuned!
Request you to please do a Video on the Presumptive Taxation Scheme, and it's Benefits.
Noted your suggestion, stay tuned.
Please make a video on Presumptive taxation
Thanks for the suggestion. Stay tuned!
Am I taxable if my taxable income less than 5 lac with 75 thousand short term capital gains profit
How do I file tax if I have income from fno , short term trading and ltcg...
From income tax portal I am not getting the benefit of 1 lakh deduction from ltcg
Keep this series on taxation on
Glad you're enjoying our videos, Mohit. Let us know what topics you would like us to cover in upcoming videos.
00:02 Understanding taxation is crucial for stock market traders.
02:12 Trading requires strategic decisions, market trends, and risk management.
04:20 Trading profits are treated as business income and taxed accordingly
06:22 Stock traders can claim various trading-related expenses to reduce tax outgo.
08:28 Trading losses can be set off against other income heads and carried forward for future years.
10:29 Tax audit requirements based on business turnover
12:29 Understanding which ITR form is relevant for traders
14:36 Understanding tax implications and regimes for stock market traders.
Please make a video for taxation for NRIs
Sir zerodha company me agar job chahiye to kaise apply karna hai aur kaise job mil skti hai is company me
What about losses in delisted shares
Make one video for NRI tax liability ?
Please make a video on Turn over calculation for options trading.
Thanks for the suggestion. Stay tuned!
Can you make video specifically for NRI investors and traders and how they have to calculate and pay taxes? There is a real dearth of information videos for NRIs in almost all aspects of stock trading and investing. It would be a great help to NRI community. Thanks
Thanks for the suggestion. Stay tuned!
Tell about losses in delisted shares
Yes please make video
Hey Vishal, please let us know which part of the video you want us to expand upon.
❤❤
how about this taxes for students. students do trading and fno based on the money the collected like small capital from 10-20k from parents learning and doing how about taxes for them
You can file the ITR and report the income. Tax liability will arise when the income exceeds the basic exemption limit of ₹2.5L.
can you make a video of trader making trading profit in individual account vs one person company vs propreitorship vs provate limited company, advantage & disadvantages please
Thanks for the suggestion. Stay tuned!
Need video on both turnover and presumptive taxation
We have noted your suggestion, stay tuned.
Hi Sir, please make video about how to calculate turnover and audit. Thank you
Noted your suggestion, stay tuned.
I was working in an private organization and aside i do trading which i need to pay (STCG) in thi case which ITR should i go common for both?
In case of salary income and capital gains, you need to file ITR-2.
Can FNO losses (non spec business) be offset against long term gains from Mutual funds?
Yes, losses from F/O can be set-off against all incomes except salary in the same year. However, once the losses are carried forward, they can only be set off against business income in the subsequent years.
Thanks for this, one question:
F&O intraday will go under intraday or non speculative F&O?
Non spec F&O
Can F&O profit come under Section 44 AD (presumptive taxation) ? or is it a grey area ?
Hello,
You can opt for presumptive taxation if your turnover is below ₹3Cr, however, you will have to report 6% of the turnover or actual profit, whichever is higher, as your income. Moreover, presumptive taxation was introduced for small businesses who are unable to maintain books of accounts. In case of trading, as the reports are readily available, it's better to report as regular business income.
I started trading at the end of July 2023 , i did not know that, Advanced tax has to be paid untill recently. I thought it would be paid at the end of the financial year and now, 15 March is just around the corner, will it be acceptable to pay all tax installment before 15 March ? And is the first installment of tax still applicable on me sine i started trading at the end of July 2023 or i have to pay tax of three last installments ?
Hi,
Advance tax needs to be paid based on your estimated tax liability for the year. Hence, even if you have made no profits in the first quarter, you would be liable to estimate and pay advance tax. If you fail to pay the advance tax installment, you will have to bear a interest penalty of 1% per month till the day you make the payment.
Hi sir. Please make detailed video of penalties of not paid advance tax
Hi, you can watch this video: czcams.com/video/hh1KDtIJYQs/video.html
Non-Speculative loss carried forward upto 8 years.. Is this for equal amount for 8 years?
For eg; if 80k was incurred as loss, can the entire amount be adjusted against the profit of next year or is it 10k for each year upto 8 years?
The entire amount can be adjusted against profits earned in upcoming financial years.
But remember, carrried forward non-speculative losses can only be set off against other business gains.
Sir what if we don't have any other income and only the profits earned from shares trading and is below 2.5 lakhs do we still have to pay tax ?
There will be no tax liability of your income in the entire FY does not exceed ₹2.5L. However, it is recommended to file the ITR and disclose this income.
Please make a detailed video on audit applicability of turnover
We have noted your suggestion. Stay tuned!
I do mostly swing trading in stocks delivery , can i show this as business & profession income and claim all my expenses, i. e - subscription charges and internet service etc.
Hi,
If swing trading is done with the intention of doing business and earning profits in the short term, the profits can be reported as business income and expenses can be claimed.
Thanks for the immensely informative video. I need one clarification. If Equity delivery based income falls under the Capital Gains, whether this income is also categorised as non speculative business income as it is done in the case of F&O income?
Hey @amit, cg doesn’t have such bifurcation for spec and non-spec, but yes if you treat equity delivery transactions as your business then it will be treated as non-spec business income
Equity delivery-based income is classified as 'income from capital gains'. It can be short-term or long-term based on the holding period. Short-term capital gains are taxed at 15% and Long-term capital gains will be taxed at 10%.
Moreover, if you do intraday trading, the same will be treated as a speculative business, and F&O trading is treated as a non-speculative business, and both of these are taxed at slab rates.
Based on your intent, you can disclose your LTCG/STCG as business income instead of capital gains, and in that case, the same will be treated as non-speculative business income and taxed at slab rates.
Please make video on Presumptive taxation schema for f&o traders
We have noted your suggestion, stay tuned.
Can i deduct stt and brokerage charges from my profits to determine tax liability?
Yes, you can claim the STT and brokerage as expense and determine your tax liability based on the net profit after deducting expenses.
Futures trading intraday then. Speculative or non speculative business income?
It'll be treated as non-speculative business income.
Can I taxable if my income less than 75 thousand from short term capital gains profit + 5 lac other income from salary
Hey,
As your total income exceeds ₹2.5L, these STCG will be taxable. STCG are taxed at a rate of 15%.
Please post video on presumptive taxation
We have noted your suggestion. Stay tuned!
sir, I have losses 3 years back from Intraday and forgot to file the taxes. Can I file the taxes and offset those losses for current year?
Hey,
The ITR needs to be filed before the due date in order to carry forward your losses. If the ITR was not filed during the relevant AY, you will not be able to set-off those losses.
Which type of ITR fill option trader please tell me
Hello, to give you a brief context, ITR 3 and ITR 4 are applicable for traders.
We have covered further details from 12:31 in our video.
Please let us know if you still have any confusion after watching this section.
thank you for the video
i have a question, if I took a monthly subscription for stock suggestion can I consider it as expense
Hey,
Yes, any course or subscription taken related to trading can be claimed as an expense.
@@Quicko thank you,
in case of intra day or f&o we show it as business income and can claim it as expense...but how does it will be for investments in case of short term or long term
@@amarnathn2184 Expenses can be claimed only in case of business income and not capital gains.
Hi, I have made 6.7 lakhs short-term gain and 1.68 lakhs intraday equity gain but have around 10 Lakhs f&o loss. So Can I set off my F&O loss with short-term capital gain and intraday equity gain? Kindly guide.
Hey,
Losses from F/O are classified as losses from non-speculative business and these can be set-off against all incomes except salary in the same year. Hence, yes, you can set-off your F/O losses against your capital gains and intraday profits.
7 lakhs exemption is there so if i earn 6 lakh through trading then there will be Nil itr file??am i right?
Under the new tax regime, the basic exemption limit is ₹5L, and you are eligible for a rebate till an income of up to ₹7L. Hence, there will be no tax liability, however, it is mandatory to file an ITR.
F&O intraday comes as speculative or non-speculative business loss? This was bit confusing.
Hi,
Equity intraday trading is considered as speculative business and F&O trading is treated as non-speculative business.
Please make video on tax calculation for audit on f&o
We have noted your suggestion. Stay tuned!
Kindly make a video on how to calculate turnover.
We have noted your suggestion. Stay tuned!
I have only trading income. Can I file ITR without the help of CA?
Yes
Which form is better if I have Stcg?
Hey, in case of short term capital gains, you need to file ITR-2
Thank you so much sir
Please Create a video on turnover
We have noted your suggestion. Stay tuned!
@@Quicko Thanks
Fno Trading income will be taxed at flat 30% or as per the slab we fall into after adding up all other incomes
Hi,
F/O trading is classified as non-speculative business and the profits are taxed as per the applicable income tax slab after adding all your incomes for the year.
Please make a video on how to calculate turnover
We have noted your suggestion. Stay tuned!
Transaction tax video please
Noted your suggestion, stay tuned.
Please make vedio on audit requirements
We have noted your suggestion. Stay tuned!
Need video on taxation scheme
We have noted your suggestion, stay tuned.
Presumptive taxation and audit application videos please
We have noted your suggestion. Stay tuned!
@@Quicko thank you appreciate it
If a student/housewife is investing in share market from their savings and made some gains below 2.5 lacs in a financial year(including short term gains + Intraday), do they have to pay Taxes.
Up to 2.5lacs Income is exempt right?
Short term capital capital gains are taxed at flat 15% however you'll be able to claim rebate for the same. So upto 2.5L no taxes to be paid but return for the same is suggested to be filed as a nil return
@@TheRoguePrinceDaemonTargaryen if they don’t file tax as their total gain is below 2.5lacs, will there be any problems?
@@wasimakram-jd6ps it will be considered undisclosed income and if the notice relating to the same is issued IT Dept can demand upto 78% of that income.
@@wasimakram-jd6ps Filing a nil return is just a disclosure. It's optional for salary because the employer files form 16 of the employee in which details regarding salary are given but other income such as side business and trading need to reported by the assessee.
Hey,
Income upto ₹2.5L is exempt from taxes. However, it is always recommended to file the ITR if you have income from trading.
Audit applicability for traders plz
We have noted your suggestion. Stay tuned!
If i have started trading on 31st october when should i pay taxes?
Hi,
You will be liable to pay advance tax if your tax liability in the entire FY exceeds ₹10,000.
Advance tax needs to be paid quarterly, and as this is the 4th quarter, the due date to pay advance tax is 15th March.
This video should be available in all languages
6:29 isn't 30% tax applied on Rs. 11.5 L?
Yes, an income of ₹11.5L falls under the 30% slab under the old regime. However, the 30% is not applied on the entire ₹11.5L. The lax liability is calculated as per the slabs.
@@Quicko can you please explain how Rs. 1.57 lakh showed up?
Presumptive taxation scheme please
We have noted your suggestion. Stay tuned!
If my income from trading is less than 1 lakh in a financial year, do I need to pay taxes?
There will be no tax liability of your total income does not exceed ₹2.5L in the entire FY.
@@Quickoby total income you mean including salary for the year?
@@Anup-zf8xh Yes, total income including salary.
@@Quicko what if iam working abroad and my salary is received outside India in foreign currency.
Video Hindi language me banaye please sir help Ho Gaya
Please explain in detail, this looks like an overview
Hey Vignesh, let us know which part of the video you want us to expand upon. We can make a detailed video on the same.
Need video on turnover
We have noted your suggestion, stay tuned.
जेरोधा hang ho gya Bhai abhi abhi kuch minutes ke liye , or loss karwa diya
I only make loss to avoid tax
Please make a video on how TURNOVER is calculated, I think I know it, but you're a trusted source to rely upon.
Thanks for the suggestion. Stay tuned!
You're most welcome @@Quicko! ☺️
Presumptive taxation
We have noted your suggestion. Stay tuned!
Hindi me nahi bata sakte 😊
भाई आप लोग हिंदी वीडियो बनाते तो थोड़ा आसानी आपके सभी खाता धारक संपूर्ण अंग्रेजी नहीं आप लोगों से विनम्र प्रार्थना
Please correct your pic of mukul Agarwal
please make a video on how to calculate turnover
Thanks for the suggestion. Stay tuned!