Comment on Taxation for Traders - Introduction

Chella,

1. An income is an income, doesn’t matter how you earn it unless a few which are exempt(example farming and etc) if you look at Section2(24) which defines the word income. As per our understanding of the definition, “profit and gains” is a part of “income” and are not really the same.
Income tax department doesn’t really differentiate if the person trading is a house wife or a working woman. If the housewife is trading futures, then she is partaking in a kind of business and the same rules apply to her as well.
The idea with how we do our business and the way we have mentioned on the blog is to simplify and avoid any loose ends. The best way to do that would be to have a tax audit even if you have made a loss.

2. For the financial year 2012-2013, if you intend to carry forward the losses, you need to get the audit done and in such cases the last date is 30th Sept 2013. If you don’t get an audit done and want to carry forward the losses the last date was 31st July 2013, which has already passed.

Hope this clarifies.

Cheers,

View the full comment thread »