Comment on Taxation Simplified

Nithin Kamath commented on 26 Jun 2013, 07:16 AM

Was waiting for someone to ask this question,

If your delivery based is not active and is just like an investment(like in your case), you can have 2 portfolios at a same time, one as a trader and one as an investor.

The reason for using ITR4 is because you get different heads to declare your income from.

So in your case, you can show your investment from before as long term holding of equity, hence long term capital gain and claim complete exemption.

The short term trading loss can be shown as a business loss in ITR4 and if you have any other business gain you can set it off against it either this year or in the future( anytime in the next 8 years).

But do make sure to not forget anything, the times are changing, the IT department is going online and getting more teeth.

You might need your books to be audited as well by a CA, read this Blog.

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