A big thanks to Sri PR Sundar for the special videos on income tax. These two videos greatly helping us, the F&O traders...because, many auditors are still not clear about doing the right way of filing incometax on f&o. Mr Sundar not only helped his followers, he also helped many auditors.
An audit is required if you have a business income and if your business turnover is more than Rs 5 crore for a financial year (from FY 20-21). In the case of digital transactions (equity transactions are 100% digital), this turnover limit is Rs 5 crores. For equity traders, an audit is also required as per section 44AD in cases where turnover is less than Rs.5 Crores but profits are lesser than 6% of the turnover and total income is above the minimum exemption limit. *If a person has a salary income (which is above 2.5L), and he traded in FnO his turnover is less than 5 Crore and he incurred losses of 30K then a tax audit is required. For that tax Audit, he has to pay 10,000+ to the CA.* That is a very bad rule from the income tax department. Small traders should not show Trading losses and carry forward for the next year to set off if they make a profit in the coming year. Suppose they make a profit next year without showing this year's losses then they have to pay taxes. This is Indian Tax Law.
@@rohitbhatt4991 For some people IT department sent a Defective File notice, and in the new portal when we show the profit of less than 6% of the Total turnover portal is throwing an error *"You will be allowed to upload the return. There is a possible defect in the return or some of the deduction/claims may not be allowed. Error Description: You have claimed income less than 8% of Gross Turnover and audit information is not filled up"*
*How many of you facing this burden?* You are a salaried person and you have a loss in FnO trading, above that FnO loss we have to shell out Audit fees for ITR filing if we want to carry forward the losses to the next year to set-off if we make a profit. That is the utter worst rule from the IT Department. When you have turnover less than 5 crores and profit less than 6% of turnover then Tax Audit is mandatory.
Hi Pramod, please refer to the 1st part of this series, there Mr. Sujit has explained that audit is not mandatory in case of losses, Audit is only mandatory if the turrover exceeds 10Cr(banking channels) and 2 cr (cash,etc). Btw, we belong to the same category, salaried and losses which cant be set off against salary, only carried forward
@@anilchoudhary7556 Have you filed your ITR? which ITR you have used? I tried ITR3. For some people, the IT department sent a Defective File notice, and in the new portal when we show the profit of less than 6% of the Total turnover portal is throwing an error *"You will be allowed to upload the return. There is a possible defect in the return or some of the deduction/claims may not be allowed. Error Description: You have claimed income less than 8% of Gross Turnover and audit information is not filled up"*
@@anilchoudhary7556 Did you see this Error? once you click on proceed to verification? *Error: "You will be allowed to upload the return. There is a possible defect in the return or some of the deduction/claims may not be allowed. Error Description: You have claimed income less than 8% of Gross Turnover and audit information is not filled up"*
@@pramodvasudevbhat1517 sorry Pramod, i have bot filled my ITR yet, i am consulting with few of my friends. once i have any helpful inputs i shall share ut with you as well
@@anilchoudhary7556 Thank you, System throw that error however I have filed ITR, will see what will happen. I have contacted a few of my friends who are practicing CA and they said, FnO is 100% digital transaction so the turnover limit is 10cr, No Audit needed.
Pvt Ltd tax 22+Surcharge 25% -> personal taxation are applicable In case of LLP -> personal taxes are not applicable so just pay corporate tax. Pls confirm if this understanding is correct
If salary is 7 lakh and loss is also incurred in F&O, we need to file ITR-3. Do we need to get it audited and maintain accounts??? Tax buddy or PR sundar, plz clarify….
You need not do audit as turnover less than prescribed limit. Secondly , as you are not availing presumptive taxation scheme, you need maintain accounts.
Sir, this kind of informative video is not available on entire youtube.. just a query.. can i opt for presumptive taxation if i also have STCG in addition to FnO income?
I'M a salaried person,but without knowing the law that a salaried person can not make speculation in stock market,what should I do now?throughout this year I take so meny trades but all the trade make me in loss.
Hi sanjoy, if you are Govt employee , there are restrictions in doing trading or speculation in stock market. If you are private sector employee and your company HR policy doesn’t restrict , you can very well do trading.
In F & O trading, the STT charges deducted by the broker . Whether this STT can be shown as expenses or it can be adjusted against the tax payable? Mr. Sundar can it be clarified in the next Q & A session.
Bcoz f&o income is taxed as Non Speculative Business, every expenses incurred can be claimed as deduction from profits.. hence, STT is allowed.. STT is NOT allowed only for Capital Gains
Thank you so much sir for the excellent Q&A..I have a question...I am a salaried person..i have more than 10 lacs as salary..i do not do F&O but I do intraday trading...and I have intraday loss around 50k..and turnover is 2 lac...do I need to have Tax audit ?
An assessee has loss in both F&O and Share trading. The turnover is less than the qualifying limit for books and audit. Yet, they are not able to enter loss in "no accounts" from of PnL in the ITR 3. What to do?
When we report a loss for Current FY, then when we file for next year ,will the reported loss be automatically shown in Tax portal ? or do we need to enter it manually. Basically am asking if the loss will be tracked somewhere by IT department
Sir, can the loss occured in "options trading" can be set off with long term profit realised on sale of land in the same year..... can you please clarify this.
Nobody tells how to calculate turnover in case of option traders. Is it calculated option price × lot size or only to the extent of premium paid/received. If we have to multiply with lot size, then 10 crore turnover will be crossed in few days.
Please explain sir How to calculate and Pay tax for Income from FNO ...whether we have to pay quarterly or Annually especially for Small Traders. Thankq for Nice Videos and For Future Videos🙏🙏🙏
It's bit complicated to explain here I'll try . If in any quarter you have profit after set off of previous losses then pay advance tax for that quarter.
Sir, Can we declare Profit from shares as a business if we are doing covered call and cash secured put? because in options we will have loss and in cash we will have profit. so we end up paying STCG even if we are in overall loss!! And can we declare dividend income as a business income if we are holding the shares for cash secured put and covered call??
good evening sir .. can you please share/educate me about the relevant section or rule position ......" describing that the Future and Option transactions were not come under the purview of Sec.44AD of income tax act, 1961 ( where the turnover is below 10 cr.) pl.🙏
How much expenses per month are allowed in terms of salary to office staff and computer operator for F &O trading business? Is it related to the turnover or profits from trading?
@@TaxBuddy No, I am housewife engaged in F &O trading as business. I am utilize my son & daughter as office assistant & computer operator. For that only I needed your clarification.
@@ravic3653 yes. In that case answer yes. It’s very simple. Only two criterion to claim expenses , firstly it should be directly incidental (related) to FnO activity and secondly it should not be incurred in cash.
Hi kash, Please share your mobile number. We look into query raised here. If you are salaried then also you can have presumptive income from your business activity separately.
Attaching conversation snippet for reference. I want to know more about presumptive tax and how it can be applicable to me based on shared docs which is specific to income under Future and Options Dec 15, 1:25 PM Tax Expert Tushar Tax Expert Tushar profile image we will get back to you soon Dec 15, 1:28 PM Tax Expert Tushar Tax Expert Tushar profile image Hello sir, if your turnover is less than Rs. 2 crore then we can select presumptive income basis and we should show profit more than 8%. If you are asking specifically for future and options then you should have only future and options income (No salary and other income) to select presumptive taxation. Dec 15, 1:37 PM
I am getting "You have claimed income less than 8% of Gross Turnover and audit information is not filled up" error while filing ITR-3. My turnover is less than 1Cr but in loss. Why am i getting this even though i dont need to Audit
Select initial answer regarding, maintening books of acct carefully. You must answer yes to maintaining books of act as all fno transactions are digitized.
Tax on STCG is 15%. So 60000 x 15/100 = 9000 tax. But if you don't have any other income, then your total tax will be less than 12500 limit. So, you will get Tax Rebate 87A and you don't need to pay any tax.
There is no MAT in new regime in company .. Further you also said wrong that once you shift to new regime you cannot shift back to old when you are doing business .. You are given once in a lifetime opportunity to shift back to old regime in business too .. Pls chk facts before speaking on such a big platform ..
@@TaxBuddy pls refer last paragraph of section 115BAC of the act which clearly says that option excersized can be withdrawn once even if you are in business !!!
A big thanks to Sri PR Sundar for the special videos on income tax.
These two videos greatly helping us, the F&O traders...because, many auditors are still not clear about doing the right way of filing incometax on f&o.
Mr Sundar not only helped his followers, he also helped many auditors.
Vvvvv good initiative by PR GURU
An audit is required if you have a business income and if your business turnover is more than Rs 5 crore for a financial year (from FY 20-21). In the case of digital transactions (equity transactions are 100% digital), this turnover limit is Rs 5 crores. For equity traders, an audit is also required as per section 44AD in cases where turnover is less than Rs.5 Crores but profits are lesser than 6% of the turnover and total income is above the minimum exemption limit.
*If a person has a salary income (which is above 2.5L), and he traded in FnO his turnover is less than 5 Crore and he incurred losses of 30K then a tax audit is required. For that tax Audit, he has to pay 10,000+ to the CA.* That is a very bad rule from the income tax department. Small traders should not show Trading losses and carry forward for the next year to set off if they make a profit in the coming year. Suppose they make a profit next year without showing this year's losses then they have to pay taxes. This is Indian Tax Law.
Your understanding is not correct. If business turnover is less than 5 cr, irrespective of the quantum of profit or loss, you do not require audit.
@@rohitbhatt4991 For some people IT department sent a Defective File notice, and in the new portal when we show the profit of less than 6% of the Total turnover portal is throwing an error *"You will be allowed to upload the return. There is a possible defect in the return or some of the deduction/claims may not be allowed. Error Description: You have claimed income less than 8% of Gross Turnover and audit information is not filled up"*
sir thank you for this detailed video. you are the only person in india who providing detailed info about these important topics
Most of the times Mr Sujith explanation is not understandable till Mr Sundar clarifies it in simple terminology
You are right brother
Very useful information
Hello PRS sir,whom to approach in your organization regarding seeking assistance for taxation and investment
Pls advise।
*How many of you facing this burden?* You are a salaried person and you have a loss in FnO trading, above that FnO loss we have to shell out Audit fees for ITR filing if we want to carry forward the losses to the next year to set-off if we make a profit. That is the utter worst rule from the IT Department. When you have turnover less than 5 crores and profit less than 6% of turnover then Tax Audit is mandatory.
Hi Pramod, please refer to the 1st part of this series, there Mr. Sujit has explained that audit is not mandatory in case of losses, Audit is only mandatory if the turrover exceeds 10Cr(banking channels) and 2 cr (cash,etc).
Btw, we belong to the same category, salaried and losses which cant be set off against salary, only carried forward
@@anilchoudhary7556 Have you filed your ITR? which ITR you have used? I tried ITR3. For some people, the IT department sent a Defective File notice, and in the new portal when we show the profit of less than 6% of the Total turnover portal is throwing an error *"You will be allowed to upload the return. There is a possible defect in the return or some of the deduction/claims may not be allowed. Error Description: You have claimed income less than 8% of Gross Turnover and audit information is not filled up"*
@@anilchoudhary7556 Did you see this Error? once you click on proceed to verification? *Error: "You will be allowed to upload the return. There is a possible defect in the return or some of the deduction/claims may not be allowed. Error Description: You have claimed income less than 8% of Gross Turnover and audit information is not filled up"*
@@pramodvasudevbhat1517 sorry Pramod, i have bot filled my ITR yet, i am consulting with few of my friends. once i have any helpful inputs i shall share ut with you as well
@@anilchoudhary7556 Thank you, System throw that error however I have filed ITR, will see what will happen. I have contacted a few of my friends who are practicing CA and they said, FnO is 100% digital transaction so the turnover limit is 10cr, No Audit needed.
Pvt Ltd tax 22+Surcharge 25% -> personal taxation are applicable
In case of LLP -> personal taxes are not applicable so just pay corporate tax. Pls confirm if this understanding is correct
If salary is 7 lakh and loss is also incurred in F&O, we need to file ITR-3. Do we need to get it audited and maintain accounts??? Tax buddy or PR sundar, plz clarify….
You need not do audit as turnover less than prescribed limit. Secondly , as you are not availing presumptive taxation scheme, you need maintain accounts.
@@TaxBuddy thanks buddy!
Nice video sir
For Your Kind Information: Even individuals also has to pay ALTERNATE MINIMUM TAX (AMT) if their income exceeds 20 Lakhs
Sir, this kind of informative video is not available on entire youtube.. just a query.. can i opt for presumptive taxation if i also have STCG in addition to FnO income?
I'M a salaried person,but without knowing the law that a salaried person can not make speculation in stock market,what should I do now?throughout this year I take so meny trades but all the trade make me in loss.
Hi sanjoy, if you are Govt employee , there are restrictions in doing trading or speculation in stock market. If you are private sector employee and your company HR policy doesn’t restrict , you can very well do trading.
In case of business and profession one switch is allowed from old to new and then back to old.
Thanks for sharing 🌷🌷
In F & O trading, the STT charges deducted by the broker . Whether this STT can be shown as expenses or it can be adjusted against the tax payable? Mr. Sundar can it be clarified in the next Q & A session.
Bcoz f&o income is taxed as Non Speculative Business, every expenses incurred can be claimed as deduction from profits.. hence, STT is allowed.. STT is NOT allowed only for Capital Gains
Certainly. STT can be claimed as expenditure
sir,make one special vidio on tax applied to only on indivisual trading only future,option,intra and cash delivary with no job
Thank you so much sir for the excellent Q&A..I have a question...I am a salaried person..i have more than 10 lacs as salary..i do not do F&O but I do intraday trading...and I have intraday loss around 50k..and turnover is 2 lac...do I need to have Tax audit ?
Nicely explained sir! I watch your videos with great care n attention -i will definatly subscribe to taxbuddy
Hi Sudhir, if you login thru link in description of this video, you can get special 35% discount on all services of TaxBuddy
An assessee has loss in both F&O and Share trading. The turnover is less than the qualifying limit for books and audit. Yet, they are not able to enter loss in "no accounts" from of PnL in the ITR 3. What to do?
Sir agar koi 3 lacs mere account mein bhejta hai aur usmein 6000 rupees hain toh koi tax lagega yaa nahi lagega?
When we report a loss for Current FY, then when we file for next year ,will the reported loss be automatically shown in Tax portal ? or do we need to enter it manually. Basically am asking if the loss will be tracked somewhere by IT department
Yes…
Yes, I think it will be automatically shown in Tax portal next year :)
Till current year , it is not showing previous year losses, you need to enter. Next year in New portal what will happen ,it is anybody's guess !!!
I have a question, in options premium collected is taxable.
When I buy first and sell later is the sell premium to be considered.
Sir, can the loss occured in "options trading" can be set off with long term profit realised on sale of land in the same year..... can you please clarify this.
Yes. It can be set off.
Nobody tells how to calculate turnover in case of option traders. Is it calculated option price × lot size or only to the extent of premium paid/received. If we have to multiply with lot size, then 10 crore turnover will be crossed in few days.
Please explain sir How to calculate and Pay tax for Income from FNO ...whether we have to pay quarterly or Annually especially for Small Traders.
Thankq for Nice Videos and For Future Videos🙏🙏🙏
It's bit complicated to explain here I'll try . If in any quarter you have profit after set off of previous losses then pay advance tax for that quarter.
I believe MAT was discontinued last year. Please clarify
No Jagdish , mat continues.
Like in the company name, is it beneficial from taxation point of view, to do fno trading in HUF name?
No
9:23 instead of company name can we trade under HUF what the benefit, govt has given only 1 golden benefit HUF to Hindus. Please advise.
If my profit for the year comes to 10% of turnover. Is it compulsory to show all the profit as income or can we just show 6% only?
Sir, I made profit in future Rs. 8 lakh and loss in option trading 3.6 lakh. How much I have to give tax ?
Sir, Can we declare Profit from shares as a business if we are doing covered call and cash secured put? because in options we will have loss and in cash we will have profit. so we end up paying STCG even if we are in overall loss!!
And can we declare dividend income as a business income if we are holding the shares for cash secured put and covered call??
good evening sir .. can you please share/educate me about the relevant section or rule position ......" describing that the Future and Option transactions were not come under the purview of Sec.44AD of income tax act, 1961 ( where the turnover is below 10 cr.) pl.🙏
How much expenses per month are allowed in terms of salary to office staff and computer operator for F &O trading business?
Is it related to the turnover or profits from trading?
Beware, no expenses are allowed against salary income. Incidental expenses are allowed against income from FnO or trading in shares.
@@TaxBuddy No, I am housewife engaged in F &O trading as business. I am utilize my son & daughter as office assistant & computer operator. For that only I needed your clarification.
@@ravic3653 yes. In that case answer yes. It’s very simple. Only two criterion to claim expenses , firstly it should be directly incidental (related) to FnO activity and secondly it should not be incurred in cash.
please explain how to calculate turnover. Let say I am just selling nifty option 1 lot daily for one year. Now how to calculate turnover.
I am subscriber of tax buddy and got info that, as I am salaried employee I can't use presumptive tax on my income from F&O income.
Is it correct ?
Hi kash,
Please share your mobile number. We look into query raised here.
If you are salaried then also you can have presumptive income from your business activity separately.
Attaching conversation snippet for reference.
I want to know more about presumptive tax and how it can be applicable to me based on shared docs
which is specific to income under Future and Options
Dec 15, 1:25 PM
Tax Expert Tushar
Tax Expert Tushar profile image
we will get back to you soon
Dec 15, 1:28 PM
Tax Expert Tushar
Tax Expert Tushar profile image
Hello sir, if your turnover is less than Rs. 2 crore then we can select presumptive income basis and we should show profit more than 8%. If you are asking specifically for future and options then you should have only future and options income (No salary and other income) to select presumptive taxation.
Dec 15, 1:37 PM
Sir make video on NRI. Can they do trading? Pro and cons.
Thanks
Nice
I am salaried employee and I do fn0 and gave swing trader on equity(less than 1 year) which Itr should I fill... Please clarify
Bhaia Revolotto coins pr kb video bnaw ge
Plz really needed a guide about Revolotto coins???
sir when are realizing the delta exchange full detailed video desperately waiting sir
thanks
If I'm trading in both Equity share (in Intraday) and also in F&O and my turnover is below 2cr, will I be eligible for presumptive taxation scheme.
Please do video on delta exchange
can you mention date in any of your post market report
Sir, I already pay taxes under 44AD, Can I go for presemtive income for f&o income also.
I am getting "You have claimed income less than 8% of Gross Turnover and audit information is not filled up" error while filing ITR-3. My turnover is less than 1Cr but in loss. Why am i getting this even though i dont need to Audit
Select initial answer regarding, maintening books of acct carefully. You must answer yes to maintaining books of act as all fno transactions are digitized.
Make video on delta exchange
baap re baap..5 crore profit ek saal me!!!!!
How to calculate turnover?
Pls enlighten on one man company,does it have any advantage over normal company
Procedural simplification and ease of compliance are the only benefits.
I'm not salaried and no bussiness.
I earned 60000 rs in STCG last year .
IS IT TAXABLE OR NOT? Please reply me.
Yes 15% on your profit bro
Tax on STCG is 15%. So 60000 x 15/100 = 9000 tax. But if you don't have any other income, then your total tax will be less than 12500 limit. So, you will get Tax Rebate 87A and you don't need to pay any tax.
Sir Delta exchange next video please. Waiting
Good morning sir, I buy call option 17200 monthly rs 450 ,150 qty now option price 115,i loss 50,250, should I book loss or hold, please advise
Hi Sir, what is the tax rule for equity delivery vs it’s profit or loss?
Hi Sathiaraj, tax rules are same for business income from trading in shares (delivery based) or trading in F&O
@@TaxBuddy thanks for the prompt reply.
There is no MAT in new regime in company .. Further you also said wrong that once you shift to new regime you cannot shift back to old when you are doing business .. You are given once in a lifetime opportunity to shift back to old regime in business too .. Pls chk facts before speaking on such a big platform ..
Hi Pranay, if you have business income , and you choose tax regime , you can not change later. This is the present rule.
@@TaxBuddy pls refer last paragraph of section 115BAC of the act which clearly says that option excersized can be withdrawn once even if you are in business !!!
Sir
What data should be provided for audit
For audit your transactions statement , bank statement and any other data which auditor may need.
Sir I have salary income can I adjust my loss from f&O against my income by itr3
No. brother, losses from F&O cannot be adjusted against Salary income, as both are different types of incomes.
No. It cannot be adjusted against income from salary.
Sir in company if concessional tax regime of 25.17% then there is no MAT
Yes. MAT will come into picture when there is loss.
@@TaxBuddy if 115BAA is opted there is no mat even if there is a loss...
Pls explain in tamil sir..
Put leya huaa hai
Well explained