Comment on Taxation Simplified

BKO commented on 10 Aug 2013, 07:57 AM

Dear Zerodha,

Thank you for your quick response.

1. A query on F&O MIS transactions which are objectively meant for intraday, so even this is not considered speculative, am I right or only NRML type order is considered as business income ?

2. It will be highly appreciated if such a report that actually gives the net profit / loss statement inclusive of the related purchase transactions from previous financial years as currently the Equity Account Analysis only gives the net purchases which could be same, less or 0 for the corresponding sold shares in the current year, for example if I bought 10 and sold 5 in the same financial year then too it wont give the net profit from the sale of 5 shares but instead it gives the net profit / loss plus the net value of the remaining 5 shares in the account.

3. Saw in this blog where it has been mentioned that you need to take the opening price of the current financial year in case of open positions from previous fiscal years, but I have found a different view that you need to take the original purchase price of the share and that too in FIFO fashion, so now I am confused with what purchase price should we arrive at the net profit for transactions spanning several years as you realize that if the net profit / loss is calculated incorrectly then the tax liability too can change significantly. For example with opening price as purchase price I may have 0 profit whereas with original purchase price I may have 1000 Rs. profit which should be taxed (if falling in tax slab), so is it possible for you to check and confirm this as its very important ? Since we need to know what thumb rule income tax department is following and we need to adhere to the same else there could be a tax default.

Thanks and Regards,

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