Comment on Taxation Simplified

Madhavan,

Here you go:

1. You can consider you trading as an individual or as a business. As an individual you get tax slabs upto Rs 10lks income per year and only over that have to pay 30%, as a business you don’t get such tax slabs.
Yes you can claim deductions like what you have mentioned as an expense as long as there is a logic behind it if tomorrow questioned.

2. When taking P/L for income you can either do it based on gross or net profits. It is upto you. You can take the gross profits and show expenses like brokerage, turnover charges, other expenses and then deduct it from your gross profits or just take the net profit and deduct your other expenses.

3. Yes subscription charges are a definite expense you incur while trading. So all charges like data feed charges, subscription, advisory etc can be used as expenses.

4. Our Backoffice itself has comprehensive reports which can be exported to excel and analysed. If you are looking at outside vendors, Direct shares , Mprofit etc are the options available.

5. Advance tax is payable by all individual/firms/companies as per law, and there is no such exception for traders. If you are doing trading for a living and in profits, it is best to start paying advance taxes.

6. Forex transactions by an Indian individual is not permitted as per FEMA guidelines. You are allowed to trade currency pairs that trade on recognized Indian exchanges. Do consult your CA on this, because this is not allowed legally.

Hopefully this answers your queries,

Cheers

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