Comment on Taxation Simplified

Nithin Kamath commented on 13 Feb 2013, 03:15 AM

Thanks Pranab,

If your total income say goes to 2.5lks, then you would be paying 10% as taxes over 2lks .. So on 50k you will pay 10% which is Rs 5000.
But because you are doing intraday equity trading, you are doing trading as a business and hence can use business expenses to reduce your taxable income. So if you have paid 12k/year on internet, 10k in depreciation on the computer that you have, 5k as other such charges, your income drops by 12+10+5, 27k. Now your taxable income is 2.23lks and tax you have to pay is 10% on 23k which is 2.3k..

ITR4 to be used.
Even if you make a loss and not under tax brackets, make sure to file your returns..

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