Comment on Taxation Simplified
commented on
03 Jul 2013, 03:57 AM
Omp,
If you are trading on f&o, your activity is considered as a business and hence you need to use the ITR4 forms which gives you the facility to declare any trading profit/losses.
You cannot go back and file for all the years from before now, it is too late. But what you can do is to ensure that you start following it from now. For the last financial year 2012-13, ensure that you start showing the trading profit/loss. The reason you need to show is 1. IT department is going online and they can track all your activities linked to your PAN very easily. Their powers are increasing. Not showing a particular activity could lead to penalty. 2. There was a small change made to section 44AD, which now says that if your profit is less than 8% of your turnover, you need to have your books audited by a CA. If you don’t declare this as a loss, tomorrow the IT department might come back to you and ask you to pay taxes considering 8% of your turnover as profits. 3. If you declare you trading losses, you can set it off to any business profit you make in the next 8 years and eventually save taxes because of that.
Most of your queries are probably answered on this blog, if there is something which is not, ask me for it.