Comment on Taxation Simplified

Nithin Kamath commented on 09 Jul 2013, 09:51 AM

If you are actively trading in your wife’s account it will be very tough to keep your long term investments and f&o separate. Both would ideally have to be considered as a business.

Some people like to in such cases keep all investments from one demat account and show it as separate, but since you have not done it i’d say, show all the trading in your wife’s account as a business and use ITR-4.

You can’t really change the past, so forget about it, but make sure to start filing returns from this year.

Yes, you need to consult a CA even if turnover is less than 1crore since you have made a loss( profit less than 8% of turnover).

When you go to a CA, you would need the P&L statement and your bank statement. It is also best to be ready with a bank book explaining if any expense on your bank account is for the business of trading. If it is then your net loss would increase and you can use this to net off any other future business income(when I say business income, it is not just trading profits, it could be any profit she makes in future doing any business)

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