Comment on Taxation for Traders - Introduction

Varughese K Eappen (@VKEappen) commented on 28 Jul 2014, 05:57 PM

Thanks for the lightning fast response. A few more queries. Likely to be my last 🙂

1.The business profit and loss that I show here can I club it with other businesses as I am going to start an online business soon. Will I be able to set off my loss in trading with the profit in that business and vice versa.

2.My tax consultant has been mistakenly using FormA2 for the past 2 years and has been filing it as Capital loss(He doesn’t understand stock market).
In ITR 4 there is a schedule CFL(Losses to be carried forward).By default when I fetched the details from my PAN my past losses were shown in the section short term capital loss. Should I edit and instead change it to business loss. Or Should I file my return and then file correction return for last year and this year.

3. You mentioned that F&O details should be mentioned in Business and Profession section.I did not find it.There is a P&L section.Is this what you were referring to.

4.In case P&L is the relevant schedule, there are 2 ways it can be filled.
One is where they ask all the details like sales,duties,other income,stocks etc.(to be filled in case of regular books being maintained); and the other method is NO ACCOUNT METHOD(where regular books are not maintained) and where they ask for Gross Receipt,Gross Profits,Expenses,Net Profit.

5.What is Gross Receipt:Is it total sale value of Futures for the year or is it Total Sale-Total Buy value.

Again Thanks for starting this blog. If I had come across this blog a couple of years ago,I wouldn’t have ever gone to my clueless TAX CONSULTANT.

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