Comment on Taxation Simplified

psharma commented on 21 Jul 2013, 05:53 PM

@Anish, on your post of 10th July, i have another view – it is of intent backed by proportional claim on expenses.

1. If you are doing F&O, its always business income and added to income.

2. If you are doing short term equity (<1 year), you can club any profit/losses under short term capital gains, but you cannot claim expenses against this. Also, ensure that the turnover of short term equity <x% of F&O turnonver to justify intent. My x always <10%. Basically, If you are doing F&O and want to take short term capital gains too, short term equity should be a minor portion of your total turnover. Obviously, that all your expenses should also be proportioned in the same ratio.

3.Equity > 1 year is always tax free (under current laws), irrespective of your status on 1 and 2.

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