Turonover Limit for Audit is ₹10 Crore if transactions are through banking channels, otherwise it’s ₹1 Crore. Turnover Limit for Presumptive Taxation Scheme is ₹2 Crore. Hope you found the Q&A useful. File your ITR with TaxBuddy easily - filemyreturns.taxbuddy.com/prsundar
Through the video i clearly understood that i need not pay any tax because i am in net loss of 4.5 L, but confusion is that in which year ITR i need ro claim loss?? This year ITR before 31st dec 2021 ?? Or i will claim in next year 2022 ITR.
Hi, Chamala Arjun , this mean more than 95% of sale and expense transactions should be trough banking channel. In F&O , by default all transactions are from banking channel. There is probability of few incidental expenses being in cash and we should try to avoid such expense in cash.
Shri Sujit Bangar founder of tax buddy has clarified the issues in such a lucid and simple way that it has made my understanding better. Please come up with more and more such Q and A sessions.
This is the first time I am commenting on your video, but this time I just could not hold myself back! What an amazing content! Very very useful and lucid way of clearing major doubts
Highly appreciated this Q&A session Sir. Many local tax consultant is charging around Rs 9000 of audit and saying its mandatory to carry forward losses although turnover is below 2 Cr.
Please remember these rules. Turonover limit for audit is ₹10 cr is if transactions thru banking channel otherwise it’s 1 cr. Turnover limit for Presumptive Taxation Scheme is ₹2 cr.
@@TaxBuddy Hello sir, I have mentioned as 7lac as intraday loss when filing income returns in the year 2020. For this year I have profit of 7lacs in equity- short term gains. Am I eligible to recover that loss by compensating this year profit? Please advise.
@@TaxBuddyI thought the limit of 10 crores of turnover for Mandatory Audit is only from AY 2022-23. So If I am submitting return for AY 2021-22 (for FY 2020-21), The limit is not 10 but only 5 crores ? Please clarify kindly. Thank you.
@@TaxBuddy My trading turnover is 9.7crores & profit is 13lakhs. But I have used presumptive taxation for last 4 years. Can I simply file tax without tax audit this year? Asking because some folks say I have to necessarily use presumptive taxation for 5 years before dropping it. Is that necessary or can I simply submit without any tax audit because my turn over this year is >2 crores?? Please confirm quickly. Thanks a lot.
I am a ca final student as per my knowledge In case a person has brought forwarded losses from the business or profession and in the current assessment year the person files the return of income declaring his income under presumptive scheme specified u/s 44AD or 44ADA or 44AE then he is allowed to set off the brought forward losses from the presumptive income. In such a case the person is required to file return of income under form ITR-3 declaring his income on presumptive basis under table 61 to 64 of “Part A P & L” of the form and declaring the brought forward losses under “Schedule-CYLA”.
Thanks Mr Sundar. This is gem💎 Thank you for using your powers to the noble cause of helping others. I have one question please ask this in next video. As far as I know, there is rule in Income tax act that says that F&O positions taken to hedge the long-term investments in cash segment are treated differently for taxation purposes. If I had bought put-options to hedge my investment during 2020 crash, my put-options would have gone higher while my stock holdings crashed. But, because these put options was bought with an intention to hedge my investments from virus uncertainties, the net-gains I get from appreciation of my position (investment and its hedge) is supposed to be considered as capital gain rather than as business income (despite having F&O position) Can you please ask TaxBuddy and verify if this is true?
If your turnover & transactions in options is very less and bought only for hedging, sure you can declare it as short term capital gains & not business income. This is allowed as per my study in few tax websites & also varsity by Zerodha. Just be sure to provide proofs if IT officers dispute it. I don’t expect that to happen though.
Sir, i being a tax practitioner myself, wud like to highlight that for q5, the reply was that if one has loss no need of tax audit.. well, its true if one has only fno loss. But if in addition, one has salary income(abv 2.5 lac),, then tax audit is mandatory.. also, last question, reply was that brouggt frwrd loss cant be adjusted against presumptive income, but it again is contradictory becoz only expenses falling in section 28 to 43 r not allowed against presumptive income, whereas bf losses fall in section 70-80 which is not rrstricted against presumptive income... Ur team may contct me fr further clarification.
Can you tell which section/clause states you need audit if you have salary income along with F&O loss. I have been hearing about this but want to understand what’s the basis for this statement.
omg. what a crystal clear explanation. it's so beautifully made. This addressed exact doubts which i had. I assumed I ll have to pay 30% of 18 lakhs in FnO profits. Now as my turnover is 32 lakhs I can calculate 6 % as profit.
For Option turnover, please clarify - Buy option premium is Rs. 10K and Sale option premium is 22K so profit is 12K. So Turnover is Rs. 32K(10K+22K) or 34K(2K+10K+22K) or some other way. Please guide
This is the same question I had, I'm a salaried person doing options too. I'm new to taxation, usually I will give all my account details to ca office and do taxation. In this year I have a net profit of 1k in options. They put the 3k as taxable amount! Later I come to know they use different calculatiln in options and they said it's overall turn over *6 %. In my case 50k*6% . Now for 1k profit tax will be 3k
Another useful video. I would like to explain share trading for central government staff. Share trading not allowed. Only investment upto maximum of 6 months basic pay in a year is allowed. Investment beyond 2 months Basic pay should be intimated to the Department concerned. Pl note that frequent investment is also considered as trading which is not allowed.
For understanding purpose, Profit/Loss = Sell Premium - Buy Premium. Then what is the meaning of Premium added at the end in "Tunover = Profit + Loss + Premium". Is it Buy Premium or Sell Premium?
@@PraveenKhunte both the prem from buy n sell orders are included. For example if i buy optiom of prem. 100 and sell it at 50(square off). Both the prem100+50 will be included in calculation
@@PraveenKhunte if option bought for 100 and sold for 30. Then turnover will be the 70(loss on option) + premium collected = 30 on sale of option. Total turnover will be 70+30= 100
Thank you so much for the wonderful video sir... you took so much initiative to support the retail traders by providing such information. Thanks to Sujita Bangar sir for all the clarifications and answers. He was so patient enough and provided a very clear details.
Not only business, Government officials are not allowed to do speculation. HOD does not have the authority to allow or disallow it. So F&O is a big NO to a Government Employee. However, there is no restriction to invest in share market.
Tax Buddy team or any expert here I still need some clarifty on turnover for option selling. Trade 1 - I sell an option for rs 100 and exit at 120. Book a loss of 20. Current concencus seems be that Turnover = Loss + sell value of option. In this case tat would be 20+ 100 = 120 . However i have not received any premium since i booked loss, so should the turnover be just the loss .i.e 20 ? Trade 2 - I sell an option for rs 100 and exit at 30. Book a profit of 70. What will be the turnover in this case. Will it be the profit + sell value of option ie. 70+ 100 = 170 ? or will the turnover be profit of 70 + net premium received of 70 ? Appreicate your help if you could calculate the tunover for these two trades .
Sir - please double check. Even in case of presumptive taxation, past year losses can be adjusted. Presumptive taxation is to ascertain income of current year where as past year set off of losses is towards computation of tax
No. you can not set off past year losses from the same business that you have applied presumptive tax this year. if you are talking about two different businesses and then the second business does not use presumptive tax, then you can set the losses off against such second business income.
Thank you so much sir and Sujith sir. Most of the tax consultants are just doing copy of ITR but not keen in advising the payer like you did in one example. Thye dont try to give all possibilities of claiming losses or expenses, but charge 500-2000 just to copy Form 16 to ITR page.
Sir I am a salaried employee... Last 2 years I had loss in FnO of 2 and 1 lakhs respectively, turn over is 65 lakhs and 40 lakhs respectfully and I didn't show that in itr and I just filled itr 1. ( I didn't not get any notice from IT ). This fy I had loss of 3 lakhs in FnO and turn over is 80 lakhs and I filed it and showed it in itr 3. Not opted any presmtv taxation. Is audit applicable for me? And do I have any problem from last 2 Itr ? Will Inc tax dep share these info with our employer ? Bkas I m a govt employee..
When we are filing ITR3 then it is not permitting to enter a loss in point no 64 for no account cases. Please suggest how to fill a loss from derivative transactions. Please suggest how do we fill the same. There are four boxes 1) Gross Receipts 2) Gross Profit 3) Expenses 4) Net profit. It is not allowing negative figure in any box. The instructions issued by CBDT for filling ITR3 says that "Declaring of loss from business / profession under no books of accounts is restricted"
12:30 to claim loss .We have to maintain books of accounts and get them audit. Firstly trading in derivatives is considered as business income. Hence the question of audit comes into picture. Basically audits are of two types One is Turnover based. 2nd is for presumptive income cases where if income claimed is below 6%,8% as the case may be. To claim loss we need to get the books of accounts audited. And if do not pay tax under presumptive scheme. Well not be eligible for presumptive scheme for 5 years. Things are not as easy as told by the guest speaker.
Tax buddy team Thank you for making this video About audit 1)As you said 10CR limit is important Actually I don't want to go with presumptive taxation Even if I am comming under the scenario (Turnover less then 2/5 CR which is prescribed under Presumptive tax And profitability is less than 6%/8%) So can I simply ignore the presumptive taxation sec and only Focus on 10 CR is crossed or not if crossed then only audit required Irrespective of profit or loss Right ??? And I need to file only ITR3 AND SHOWS income/Loss from normal business ?????? 2)and is the same applicable For Intraday Equity ? In terms of Turnover calculation is same as future turnover ? 3)In STCG And LTCG The specific Percentage is decided Which is 15% For STCG And 10% for LTCG (Above 1lakh) So this comes under Captial gain right And tourn over is not considered for this right ?????? 4)The 10CR turnover limit is for Financial year 2020-2021 As well as 2021-2022? And total turnover include 10 CR as discussed can be included intraday equity ? Please help to clerify this So my all doubts get solved 🙏
Hi Aniruddha , Presumptive scheme is choice. It’s not mandatory. Secondly , don’t confuse these rules with capital gain. Capital gain rules are diff and separate. Thirdly , turnover limit of ₹10 cr is available from financial year 2020-21 and subsequent years.
@@TaxBuddy and is the same applicable For Intraday Equity ? In terms of Turnover calculation is same as future turnover ? And total turnover of 10CR can be total of f and o + Intraday equity
@@TaxBuddy I m a salar ied employee. My income is ₹4.5 lakh, I did option trading with turnover ₹4.3 lakh and had losses of ₹80,000, does audit is required as my income is more than the exempted limit of ₹2.5 lakh? I transferred ₹2 lakhs from my salary account to trading account, in balance sheet should I show these ₹2lakh only as source of fund or I have to show all the balance that I have in my accounts and received as salary?
@@TaxBuddy I m a salar ied employee. My income is ₹4.5 lakh, I did option trading with turnover ₹4.3 lakh and had losses of ₹80,000, does audit is required as my income is more than the exempted limit of ₹2.5 lakh? I transferred ₹2 lakhs from my salary account to trading account, in balance sheet should I show these ₹2lakh only as source of fund or I have to show all the balance that I have in my accounts and received as salary?
Everything said in the video is correct except one thing i.e. set off of last year losses against current year presumptive income. Brought forward losses can be set off against this year presumptive income as per the case law and in this case one needs to file ITR-3.
These two guys have not even seen ITR-3 on the new portal! You cannot show loss in the P&L section directly, as they have disabled insertion of minus sign to show loss (negative value) under “No books of account” at sl.no.65 in Sch P&L! So, the only way you can show your loss is by entering the total business expenditure and business income in their respective sections. The loss will be automatically calculated and transferred to the P&L section. HOWEVER, when you validate the file, an error will be displayed saying that the profit is less than 8% but no audit details are shown. It will warn that though the return can be uploaded, it is a defective return! Now it becomes easy for the IT department to send notices to all those who have filed defective returns!
The aim of this govt is very clear - they do not want retailers in the F&O market! Period! First they reduced the margin allowed for F&O, then they said equity F&O will no longer be cash settled, and now unless you generate at least 8% profit, or if you incur a loss, you will have to spend another Rs.15000 or more to get tax audit done! The message from Shri Modi and Madam Sitaraman is very clear: RETAILERS, GET OUT OF F&O MARKET! IT IS A RICH PEOPLE'S CLUB WHERE RETAILERS AND DOGS ARE NOT ALLOWED!!!!
and is the same applicable For Intraday Equity ? In terms of Turnover calculation is same as future turnover ? And Turnover of 10CR = Option Turnover + Intraday Turnover
Very useful session....If fno turnover is higher than 2CR but less than 10Cr , ITR 3 is correct choice . Right? And also in such cases auditing is not required ?
1. Presumptive taxation turnover has been increased to 5 crores in 2020 2. Presumptive taxation should be availed for minimum 5 years continously or else you cannot opt for it again. 3. For options turnover both buying and selling premiums need to be calculated or just selling side premium? Pls clarify these three.
Need more clarity on an individual account, In one of the videos on 2-June-2020, you have mentioned that for an individual account, the loss for FY can be carried forward to the next year and get the benefit over the profit of next year. But in today's video tax buddy CEO- said that cannot be done. Could you clarify more in detail for an individual account? Thank you
FY 19-20 - Profit - Presumptive Tax (ITR 4) FY 20-21 - Loss - Normal Return (ITR 3) FY 21-22 - Profit - Normal Return (ITR 3) I don’t think you can claim Presumption Tax for the FY 21-22. As the act says that if a person opts for presumptive taxation scheme then he is also require to follow the same scheme for next 5 years. If he failed to do so, then presumptive taxation scheme will not be available for him for next 5 years. Correct me if I’m wrong.
@@kishorereddy3888 Yes, maintenance of books of accounts becomes mandatory. But tax audit is subject to the turnover conditions. Just because you’ve incurred loss, it doesn’t mean you have to get your accounts audited.
@@robinson_rn it's not about the loss, it's about whether income is offered under presumptive taxation or not for continuously for 5 years. If say, in 2nd year you've incurred loss and don't want to file under presumptive taxation then maintenance of books is mandatory and get the books audited is also mandatory even if the turnover limits for tax audit not met. Just read section 44AD(4) & 44AD(5), you eill get clarity.
Thanks for this very informative session. Got 2 questions. Is option premium paid is treated as loss or gain? Can you also please talk about tax treatment for salary+dividends+ capital gains/ losses from equity selling. Thanks
Hello Rajesh. Salary & dividend are taxed at normal rate (ie as per slab) Short term capital gain out of sale of equity shares is taxed at 15% Long term capital gain out of sale is equity share is taxed at 10%. However, there is no tax for gain upto ₹1L. The losses from capital gain can be carried forward for 8 years. And loss from short term can be set off against both long and short term gains. Whereas, loss from long term can only be set off by long term gains.
Salary + Individual trading (intraday equity + F AND O and investment) THE audit purpose the turnover for trading is 10CR right ???? (in case of not avail ing presumptive tax ) & banking chanel . "Irrespective of my total income (salary+interst from bank +etc) Is to basic income tax slab " The rule of audit is required only above 10CR will not affected right ? And can i simply ignore the presumptive tax even if i come under scenario of Turnover is less than 2/5 And profitability is less than 6/8 % And just keep in mind that only 10CR limit if crossed than only audit otherwise not In any case profit or loss just need to file ITR 3 (No audit and no presumptive taxation)
One thing is still not clear about how to calculate turnover for options. Profit + Loss + Premium When you say premium, is it sell side premium or buy side premium?
While audit is not mandatory if your turnover is below 10cr and you have sustained loss. Income tax website is not allowing you to file ITR 3 with loss and without audit. This was not the issue in old income tax website. Before passing on the information, would have been helpful if he had checked this.
Big problem most of Govt Employee don't know English so this statement is like out off from their head and I am one of that since I know English also but it is just bounce. जादातर सरकारी कर्मचारियों को हिन्दी आती है अंग्रेजी नहीं इस कारण से जो भी बात प्रथम प्रश्न के लिए कही गई ओ अधीकतर को समझ नहीं आयेगी मुझे भी पुरी समझ नहीं आई जबकी में कुछ अंग्रेजी जानता हूँ।(जो अंग्रेजी नहीं जानते वो भी श्री सुंदर जी के फॉलोवर है कृपया अन्यथा न ले)
Turonover Limit for Audit is ₹10 Crore if transactions are through banking channels, otherwise it’s ₹1 Crore.
Turnover Limit for Presumptive Taxation Scheme is ₹2 Crore.
Hope you found the Q&A useful. File your ITR with TaxBuddy easily - filemyreturns.taxbuddy.com/prsundar
Through the video i clearly understood that i need not pay any tax because i am in net loss of 4.5 L, but confusion is that in which year ITR i need ro claim loss?? This year ITR before 31st dec 2021 ?? Or i will claim in next year 2022 ITR.
can you please explain what does it mean "transactions are through banking channels"
@@chamalaarjun9422 not in cash mode. If you are doing trading that means everything happens through bank so no cash payment.
Sir I have one question in option we have to paid tax in based on turnover or net profit or loss please solve it many of ask same question.....
Hi, Chamala Arjun , this mean more than 95% of sale and expense transactions should be trough banking channel. In F&O , by default all transactions are from banking channel. There is probability of few incidental expenses being in cash and we should try to avoid such expense in cash.
Shri Sujit Bangar founder of tax buddy has clarified the issues in such a lucid and simple way that it has made my understanding better. Please come up with more and more such Q and A sessions.
Ñr dpl😊❤😊7y up i5. Qu
This is the first time I am commenting on your video, but this time I just could not hold myself back! What an amazing content! Very very useful and lucid way of clearing major doubts
Thank you so much sir for covering initial questions. I've been asking so many people on youtube Twitter etc but no-one covered these questions. 🙏🏻🙏🏻😊
Highly appreciated this Q&A session Sir. Many local tax consultant is charging around Rs 9000 of audit and saying its mandatory to carry forward losses although turnover is below 2 Cr.
Please remember these rules.
Turonover limit for audit is ₹10 cr is if transactions thru banking channel otherwise it’s 1 cr.
Turnover limit for Presumptive Taxation Scheme is ₹2 cr.
@@TaxBuddy
Hello sir,
I have mentioned as 7lac as intraday loss when filing income returns in the year 2020.
For this year I have profit of 7lacs in equity- short term gains. Am I eligible to recover that loss by compensating this year profit? Please advise.
@@TaxBuddyI thought the limit of 10 crores of turnover for Mandatory Audit is only from AY 2022-23. So If I am submitting return for AY 2021-22 (for FY 2020-21), The limit is not 10 but only 5 crores ? Please clarify kindly. Thank you.
@@Vidyasagarbb hi Vidyasagar, the limit 10 cr is applicable from AY 2021-22 for which we all are filing ITRs before 31st December
@@TaxBuddy My trading turnover is 9.7crores & profit is 13lakhs. But I have used presumptive taxation for last 4 years. Can I simply file tax without tax audit this year? Asking because some folks say I have to necessarily use presumptive taxation for 5 years before dropping it. Is that necessary or can I simply submit without any tax audit because my turn over this year is >2 crores?? Please confirm quickly. Thanks a lot.
Really very helpful. Pls conduct like this with Mr. Sujit regularly
Yes very very helpful video!!!
I am a ca final student as per my knowledge In case a person has brought forwarded losses from the business or profession and in the current assessment year the person files the return of income declaring his income under presumptive scheme specified u/s 44AD or 44ADA or 44AE then he is allowed to set off the brought forward losses from the presumptive income.
In such a case the person is required to file return of income under form ITR-3 declaring his income on presumptive basis under table 61 to 64 of “Part A P & L” of the form and declaring the brought forward losses under “Schedule-CYLA”.
One of the superb video.many CA don't know in detail about fno calculation.this video is guide for them 👍
Thanks Mr Sundar. This is gem💎 Thank you for using your powers to the noble cause of helping others.
I have one question please ask this in next video.
As far as I know, there is rule in Income tax act that says that F&O positions taken to hedge the long-term investments in cash segment are treated differently for taxation purposes.
If I had bought put-options to hedge my investment during 2020 crash, my put-options would have gone higher while my stock holdings crashed. But, because these put options was bought with an intention to hedge my investments from virus uncertainties, the net-gains I get from appreciation of my position (investment and its hedge) is supposed to be considered as capital gain rather than as business income (despite having F&O position)
Can you please ask TaxBuddy and verify if this is true?
I also heard this
Please ask if this is true If this is true I will save lot of tax I have been filing option hedges as business income
If your turnover & transactions in options is very less and bought only for hedging, sure you can declare it as short term capital gains & not business income. This is allowed as per my study in few tax websites & also varsity by Zerodha. Just be sure to provide proofs if IT officers dispute it. I don’t expect that to happen though.
One of best video on tax related for f &o traders
Very helpful. Sir please show once through an account the FnO turnover calculation
Sir, i being a tax practitioner myself, wud like to highlight that for q5, the reply was that if one has loss no need of tax audit.. well, its true if one has only fno loss. But if in addition, one has salary income(abv 2.5 lac),, then tax audit is mandatory.. also, last question, reply was that brouggt frwrd loss cant be adjusted against presumptive income, but it again is contradictory becoz only expenses falling in section 28 to 43 r not allowed against presumptive income, whereas bf losses fall in section 70-80 which is not rrstricted against presumptive income... Ur team may contct me fr further clarification.
Can you tell which section/clause states you need audit if you have salary income along with F&O loss. I have been hearing about this but want to understand what’s the basis for this statement.
No need of audit even salary having more than 2.5 L
I think, sending letter to HOD will attract CCS disciplinary proceedings
Only for central government officials
very informative and highly appreciable 👌👌👌
cleared all my doubts!!
Thank you Mr Sundar for arranging this session.
It was very useful and educative too.
Can't be explained more clearer than this video. Great one 👍
Great session! Thank you Sundar and Bangar 👍🏼👍🏼
The last answer is incorrect...carry forward losses can be set off against current year presumptive income.
omg. what a crystal clear explanation. it's so beautifully made. This addressed exact doubts which i had. I assumed I ll have to pay 30% of 18 lakhs in FnO profits. Now as my turnover is 32 lakhs I can calculate 6 % as profit.
Thanks a lot for much awaited video on this topic.👍👍
Excellent classification sir.. Thank you Sundar ji for inviting him
Very good initiative sir...shows what a good Samaritan you are at heart!!!.
For Option turnover, please clarify - Buy option premium is Rs. 10K and Sale option premium is 22K so profit is 12K. So Turnover is Rs. 32K(10K+22K) or 34K(2K+10K+22K) or some other way. Please guide
Still same question in my mind.
Now the rules have been changed … just total absolute profit and absolute loss and that is your turnover… no need to add premium even in options
Super informative session. Thanks a lot for insights about F&O taxation.
Very clear information. Many CZcamsrs just confuse with lenthy videos.
This is the same question I had, I'm a salaried person doing options too. I'm new to taxation, usually I will give all my account details to ca office and do taxation. In this year I have a net profit of 1k in options. They put the 3k as taxable amount! Later I come to know they use different calculatiln in options and they said it's overall turn over *6 %. In my case 50k*6% . Now for 1k profit tax will be 3k
Very important and nice information provided , thanks sir 🙏🏻🇮🇳
Very useful ..Thank you Sir
Another useful video. I would like to explain share trading for central government staff. Share trading not allowed. Only investment upto maximum of 6 months basic pay in a year is allowed. Investment beyond 2 months Basic pay should be intimated to the Department concerned. Pl note that frequent investment is also considered as trading which is not allowed.
Now in options also only absolute profit and absolute losses are added arithmetically , please provide the correct information .. Thank you
Taxbuddy should bring video chat service also 🙏🏻
Thank you both for this wonderful session
I'm student what should I do my parents don't know that I'm doing trading also
🤔
Please explain in detail the turnover calculation for an Option trader, as it is not clear by stating Profit + Loss + Premium
go to your brokers back office and find tax p&l button there. u dont need to calculate it manually
For understanding purpose, Profit/Loss = Sell Premium - Buy Premium.
Then what is the meaning of Premium added at the end in "Tunover = Profit + Loss + Premium".
Is it Buy Premium or Sell Premium?
@@PraveenKhunte both the prem from buy n sell orders are included. For example if i buy optiom of prem. 100 and sell it at 50(square off). Both the prem100+50 will be included in calculation
@@PHOENIXGAMING4HD so, the turnover of this trade (assuming 1 lot of nifty) would be Loss + Premium, which is 50 + 100 + 50 equals 200. Is this right?
@@PraveenKhunte if option bought for 100 and sold for 30. Then turnover will be the 70(loss on option) + premium collected = 30 on sale of option. Total turnover will be 70+30= 100
THANKS SIR, GREAT EFFORT TO MAKE THINGS SIMPLE
Good video sir. How option premium calculated with absolute profit and absolute loss
Thank you so much for the wonderful video sir... you took so much initiative to support the retail traders by providing such information. Thanks to Sujita Bangar sir for all the clarifications and answers. He was so patient enough and provided a very clear details.
Not only business, Government officials are not allowed to do speculation. HOD does not have the authority to allow or disallow it. So F&O is a big NO to a Government Employee. However, there is no restriction to invest in share market.
It's not a big no. It depends which part of govt sector you work in.
@@ashwinsnmv Central Government (conduct) rules prohibit it
Thanks PRS ji and Taxbuddy. I filed my it return through tax buddy via PRS plan this year
Thanks for believing in us Falguni
@@TaxBuddy I have a loss of 10 lakh and turnover 1.6 cr..,my salary income is above exemption limit...does section 44 AB apply..I have to do audit ??
Hi Vikash Gupta , as per law you need not do audit as your turnover is less than ₹10cr. It would be your choice is you wish to do audit.
Sir, in next episode please talk about Intraday speculative income. I have all same questions with Speculative income.
nice work Sundar chhcha
Tax Buddy team or any expert here
I still need some clarifty on turnover for option selling.
Trade 1 - I sell an option for rs 100 and exit at 120. Book a loss of 20.
Current concencus seems be that Turnover = Loss + sell value of option. In this case tat would be 20+ 100 = 120 .
However i have not received any premium since i booked loss, so should the turnover be just the loss .i.e 20 ?
Trade 2 - I sell an option for rs 100 and exit at 30. Book a profit of 70. What will be the turnover in this case. Will it be the profit + sell value of option ie. 70+ 100 = 170 ? or will the turnover be profit of 70 + net premium received of 70 ?
Appreicate your help if you could calculate the tunover for these two trades .
I have similar doubt. Please clarify this
@Kishore Reddy can you help please ?
from presumptive income I can claim brought forward business losses..section 44AD does not override chapter VI
Sir please make a video on LTCG..and how to escape from it..
Sir - please double check. Even in case of presumptive taxation, past year losses can be adjusted. Presumptive taxation is to ascertain income of current year where as past year set off of losses is towards computation of tax
No. you can not set off past year losses from the same business that you have applied presumptive tax this year. if you are talking about two different businesses and then the second business does not use presumptive tax, then you can set the losses off against such second business income.
Thank you so much sir and Sujith sir.
Most of the tax consultants are just doing copy of ITR but not keen in advising the payer like you did in one example. Thye dont try to give all possibilities of claiming losses or expenses, but charge 500-2000 just to copy Form 16 to ITR page.
Sir I am a salaried employee... Last 2 years I had loss in FnO of 2 and 1 lakhs respectively, turn over is 65 lakhs and 40 lakhs respectfully and I didn't show that in itr and I just filled itr 1. ( I didn't not get any notice from IT ). This fy I had loss of 3 lakhs in FnO and turn over is 80 lakhs and I filed it and showed it in itr 3. Not opted any presmtv taxation. Is audit applicable for me? And do I have any problem from last 2 Itr ? Will Inc tax dep share these info with our employer ? Bkas I m a govt employee..
Can you please cover transcation from trading in cash market. That will be very helpful.
When we are filing ITR3 then it is not permitting to enter a loss in point no 64 for no account cases. Please suggest how to fill a loss from derivative transactions. Please suggest how do we fill the same. There are four boxes 1) Gross Receipts 2) Gross Profit 3) Expenses 4) Net profit. It is not allowing negative figure in any box. The instructions issued by CBDT for filling ITR3 says that "Declaring of loss from business / profession under no books of accounts is restricted"
Same Doubt..
Taxbuddy, please clarify...!!
12:30 to claim loss .We have to maintain books of accounts and get them audit.
Firstly trading in derivatives is considered as business income. Hence the question of audit comes into picture.
Basically audits are of two types
One is Turnover based.
2nd is for presumptive income cases where if income claimed is below 6%,8% as the case may be.
To claim loss we need to get the books of accounts audited.
And if do not pay tax under presumptive scheme. Well not be eligible for presumptive scheme for 5 years.
Things are not as easy as told by the guest speaker.
Tax buddy team
Thank you for making this video
About audit
1)As you said 10CR limit is important
Actually I don't want to go with presumptive taxation
Even if I am comming under the scenario (Turnover less then 2/5 CR which is prescribed under Presumptive tax And profitability is less than 6%/8%)
So can I simply ignore the presumptive taxation sec and only Focus on 10 CR is crossed or not if crossed then only audit required
Irrespective of profit or loss
Right ???
And I need to file only ITR3
AND SHOWS income/Loss from normal business
??????
2)and is the same applicable For Intraday Equity ?
In terms of Turnover calculation is same as future turnover ?
3)In STCG And LTCG
The specific Percentage is decided
Which is
15% For STCG
And 10% for LTCG (Above 1lakh)
So this comes under Captial gain right And tourn over is not considered for this right ??????
4)The 10CR turnover limit is for
Financial year
2020-2021
As well as
2021-2022?
And total turnover include 10 CR as discussed can be included intraday equity ?
Please help to clerify this
So my all doubts get solved 🙏
Hi Aniruddha , Presumptive scheme is choice. It’s not mandatory. Secondly , don’t confuse these rules with capital gain. Capital gain rules are diff and separate. Thirdly , turnover limit of ₹10 cr is available from financial year 2020-21 and subsequent years.
@@TaxBuddy and is the same applicable For Intraday Equity ?
In terms of Turnover calculation is same as future turnover ?
And total turnover of 10CR can be total of f and o + Intraday equity
@@TaxBuddy I m a salar ied employee. My income is ₹4.5 lakh, I did option trading with turnover ₹4.3 lakh and had losses of ₹80,000, does audit is required as my income is more than the exempted limit of ₹2.5 lakh?
I transferred ₹2 lakhs from my salary account to trading account, in balance sheet should I show these ₹2lakh only as source of fund or I have to show all the balance that I have in my accounts and received as salary?
@@TaxBuddy I m a salar ied employee. My income is ₹4.5 lakh, I did option trading with turnover ₹4.3 lakh and had losses of ₹80,000, does audit is required as my income is more than the exempted limit of ₹2.5 lakh?
I transferred ₹2 lakhs from my salary account to trading account, in balance sheet should I show these ₹2lakh only as source of fund or I have to show all the balance that I have in my accounts and received as salary?
I had to keep switching from 2x to 1.5x..but a very useful information and QnA
Everything said in the video is correct except one thing i.e. set off of last year losses against current year presumptive income. Brought forward losses can be set off against this year presumptive income as per the case law and in this case one needs to file ITR-3.
Great video
These two guys have not even seen ITR-3 on the new portal! You cannot show loss in the P&L section directly, as they have disabled insertion of minus sign to show loss (negative value) under “No books of account” at sl.no.65 in Sch P&L! So, the only way you can show your loss is by entering the total business expenditure and business income in their respective sections. The loss will be automatically calculated and transferred to the P&L section. HOWEVER, when you validate the file, an error will be displayed saying that the profit is less than 8% but no audit details are shown. It will warn that though the return can be uploaded, it is a defective return! Now it becomes easy for the IT department to send notices to all those who have filed defective returns!
The aim of this govt is very clear - they do not want retailers in the F&O market! Period! First they reduced the margin allowed for F&O, then they said equity F&O will no longer be cash settled, and now unless you generate at least 8% profit, or if you incur a loss, you will have to spend another Rs.15000 or more to get tax audit done! The message from Shri Modi and Madam Sitaraman is very clear: RETAILERS, GET OUT OF F&O MARKET! IT IS A RICH PEOPLE'S CLUB WHERE RETAILERS AND DOGS ARE NOT ALLOWED!!!!
Hi, ITR-3 is being filed on new portal with reported loss and without audit.
and is the same applicable For Intraday Equity ?
In terms of Turnover calculation is same as future turnover ?
And Turnover of 10CR = Option Turnover + Intraday Turnover
Very useful session....If fno turnover is higher than 2CR but less than 10Cr , ITR 3 is correct choice . Right? And also in such cases auditing is not required ?
Yes. And if turnover is less than 2 cr but you are not availing presumptive taxation scheme , then also you need to file ITR-3
1. Presumptive taxation turnover has been increased to 5 crores in 2020
2. Presumptive taxation should be availed for minimum 5 years continously or else you cannot opt for it again.
3. For options turnover both buying and selling premiums need to be calculated or just selling side premium? Pls clarify these three.
Presumptive taxation turnover is ₹2 cr. The limit requirement of turnover for audit has been enhanced from ₹5 cr to ₹10 cr from FY 2020-21.
Interesting and informative !!
பெயற தப்ப சொன்னதுக்கு ,punishment eh hahaha. Only fun 😂😂. Apart from that it was very informative. தல. 🙌
Superb explanation by tax buddy ceo sir
Need more clarity on an individual account, In one of the videos on 2-June-2020, you have mentioned that for an individual account, the loss for FY can be carried forward to the next year and get the benefit over the profit of next year. But in today's video tax buddy CEO- said that cannot be done. Could you clarify more in detail for an individual account? Thank you
Sunder sir, it’s really too helpfull
Thank u so much sir for clearing many confusions and doubts
Sir, very good Idea,. And clear many thoughts.
Thank you sir.
FY 19-20 - Profit - Presumptive Tax (ITR 4)
FY 20-21 - Loss - Normal Return (ITR 3)
FY 21-22 - Profit - Normal Return (ITR 3)
I don’t think you can claim Presumption Tax for the FY 21-22. As the act says that if a person opts for presumptive taxation scheme then he is also require to follow the same scheme for next 5 years. If he failed to do so, then presumptive taxation scheme will not be available for him for next 5 years. Correct me if I’m wrong.
Yes, I have the exact same doubt! and its separate for SALARIED and NON-Salaried. May be Mr. Sundar will clarify this in his next video.
Absolutely correct 👍. For FY 20-21 - Loss - he can go for normal return ITR3 but maintenance of books is mandatory as also tax audit.
@@kishorereddy3888 Yes, maintenance of books of accounts becomes mandatory. But tax audit is subject to the turnover conditions.
Just because you’ve incurred loss, it doesn’t mean you have to get your accounts audited.
@@iam_ram_ What do you mean by separate for salaried and non-salaried.?
@@robinson_rn it's not about the loss, it's about whether income is offered under presumptive taxation or not for continuously for 5 years. If say, in 2nd year you've incurred loss and don't want to file under presumptive taxation then maintenance of books is mandatory and get the books audited is also mandatory even if the turnover limits for tax audit not met.
Just read section 44AD(4) & 44AD(5), you eill get clarity.
Very helpful one, thanks.
But carry forward losses can be adjusted against presumptive income as there is no such provision that losses can’t be adjusted
Thank you sir you clarified my long time concern
Should the FNO turnover be declared in the IT return?
If yes then where and how....
Thanks for this very informative session. Got 2 questions. Is option premium paid is treated as loss or gain? Can you also please talk about tax treatment for salary+dividends+ capital gains/ losses from equity selling. Thanks
Hello Rajesh.
Salary & dividend are taxed at normal rate (ie as per slab)
Short term capital gain out of sale of equity shares is taxed at 15%
Long term capital gain out of sale is equity share is taxed at 10%. However, there is no tax for gain upto ₹1L.
The losses from capital gain can be carried forward for 8 years. And loss from short term can be set off against both long and short term gains. Whereas, loss from long term can only be set off by long term gains.
In options for turn over we have to add premium collection means for writer and buyer same or diffrent formula
Sir I have one advise for you..
Next time out one small table in front of you and place 2 water bottles and tea ☕ cups...will be good to see.
Sir... Please elaborate the turn over calculation in options...
what is the fees for filing in taxbuddy any processing fee or percent like that
Very much useful information Thank you sir
During office hours it cannot be carried out since trading taking place during office hours it not permitted.
Good initiative sir
Thanks Mr P R Sundar 🌹
Very nice video on taxation for option trader
Great creation.
Really very helpful knowledge
Wel come Both of you.
Please also provide the criteria to maintain book of accounts for FO and which statements are needed for that if trading through a online platform.
Good information.
Good explanation 🙏🙏🙏
Salary + Individual trading (intraday equity + F AND O and investment)
THE audit purpose the turnover for trading is
10CR right ????
(in case of not avail ing presumptive tax ) & banking chanel .
"Irrespective of my total income (salary+interst from bank +etc)
Is to basic income tax slab "
The rule of audit is required only above 10CR will not affected right ?
And can i simply ignore the presumptive tax even if i come under scenario of Turnover is less than 2/5
And profitability is less than 6/8 %
And just keep in mind that only 10CR limit if crossed than only audit otherwise not
In any case profit or loss just need to file ITR 3 (No audit and no presumptive taxation)
Sir this is an amazing video. Can you also explain the Turnover calc with an example for newbies
Excellent content
One thing is still not clear about how to calculate turnover for options.
Profit + Loss + Premium
When you say premium, is it sell side premium or buy side premium?
Whats the turnover limit if one trades mostly in Cash segment?
Sir Thanks for sharing Great knowledge
Can we take loan if we file taxation
While audit is not mandatory if your turnover is below 10cr and you have sustained loss. Income tax website is not allowing you to file ITR 3 with loss and without audit. This was not the issue in old income tax website.
Before passing on the information, would have been helpful if he had checked this.
Have you filed ITR 4 earlier?
Excellent information
Also, The answer to this issue will depend on the facts
and circumstances of each case taking into consideration the nature of the
transaction,
Very good information 👌
Thanks for Sharing 💕💕
Big problem most of Govt Employee don't know English so this statement is like out off from their head and I am one of that since I know English also but it is just bounce. जादातर सरकारी कर्मचारियों को हिन्दी आती है अंग्रेजी नहीं इस कारण से जो भी बात प्रथम प्रश्न के लिए कही गई ओ अधीकतर को समझ नहीं आयेगी मुझे भी पुरी समझ नहीं आई जबकी में कुछ अंग्रेजी जानता हूँ।(जो अंग्रेजी नहीं जानते वो भी श्री सुंदर जी के फॉलोवर है कृपया अन्यथा न ले)
Many thanks PR SIR