Comment on Taxation Simplified

Nithin Kamath commented on 27 Feb 2014, 07:24 AM

Aijaz, in the case you have mentioned, since you trade f&o you will need to consider your trading as a business. So this profit of 10lks should be added to your all other income, since you have no other income, your total gross profits is 10lks. In this 10lks you can reduce all the expenses you have incurred towards trading, internet, brokerage, phone, computer depreication, or anything else (assume this is 1lk). Now your net income is Rs 9lks, 0 – 2 lks 0%, 2-5lks 10% so 30k, 5lks – 9lks 20% so 80k, your total tax liability would be 1.1lks. This could be planned much better, so do speak to a CA.

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