Comment on Taxation Simplified

Abhishek commented on 24 Mar 2014, 12:05 PM


I trade (age 30) in commodity derivatives (both MCX and NCDEX). I have not filed IT Returns. Please clarify the following :

1) During FY2011-12, I made a net Trading Profit of Rs.1233000/- & the turnover is Rs.83.00 lakhs &
2) During FY2012-13, I made a net Trading Profit of Rs.1700000/- & the turnover is Rs.68.00 lakhs.

For your information, I had added the settlement profits & losses to arrive at Turnover figure during the financial year.

Please inform me which of the following methods I should adopt to pay Income Tax ie,

(1) deduct the expenses like Office Rent, salaries, etc, etc from Net Trading Profit & pay Income Tax as per the slabs applicable (or)
(2) declare 8% profit on turnover figure and pay Income Tax strait away ? Please also explain in detail with pros & cons for adopting any specific method.
(3) One of my friend says the choice will be with Tax Payer & he/she can adopt any one of the methods. Whether this is true that Tax Payer can have choice like adopting any of the above methods or any guidelines are there for this ?


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