Comment on Taxation Simplified

Dear Nithin,

This is a wonderful initiative from your end to educate investors on Tax Matters. Thanks a lot and keep up the great work.

Dear Om Prakash Jain,

Thanks a lot for the informative article and your patient responses. I have some questions for you as well on full time trading. I am planning to take up full time trading (as a Business) from Apr 1, 2013. I would not be earning a Salary on the side.

1) Does it make sense to register my trading as a Business or is it not needed? Are there any benefits to registering as a business in terms of tax rates? If I trade in my own house on an already available laptop can I still claim deductions towards expenses (depreciation on comp, trading software, rent etc)?
2) I know this is a real basic one but just to clarify to myself – When taking the P/L for income do I take the Net Profits (Gross Profits – Brokerages – Other Taxes/Cesses) or Gross Profits.
3) Can subscription charges to Advisory Firms and for Magazines also be treated as Expenses?
4) Can you suggest an easy to use and relatively cheaper book keeping application to manage the expenses and trades (executed trades) ?
5) Is there a need for retail traders to pay Advance Taxes or can I manage the same before the end of the Financial Year?
6) If I trade in Forex in Overseas Accounts, do I have any tax obligations in India?

Sorry for asking too many questions and thanks a lot for all the information.

Kind Regards,
Madhavan

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