Comment on Taxation Simplified

Anamika commented on 03 Feb 2013, 04:14 PM

Thank You very much for informative article. Here are my comments/queries:

1. How and where one can declare that he is trader or investor (What I could gather is choice of ITR form says it all)?

2. What are the rules of taxation for BTST i.e. selling equity before taking delivery?

3. Is there any difference in taxation rules for intraday derivatives and derivatives trading with carryover position?

4. I have summarized the information gained through this blog for a salaried person as per my understanding:

(a) Equity Long Term – Profit: Nil Tax, Loss: Can be set against long term gains for next 8 years if declared in IT return, IT Form: ITR 1 or 2

(b) Equity Short Term – Profit: 15 %, Loss: Can be set against short term gains for next 4 years if declared in IT return, IT Form: ITR 1 or 2

(c) Equity Intraday – Profit: To be clubbed with income for calculation of tax, Loss: Can be set against speculative loss for next 4 years if declared in IT return, IT Form: ITR 4

(d) Derivatives – Profit: To be clubbed with income for calculation of tax, Loss: Can be set against Business loss for next 8 years if declared in IT return, IT Form: ITR 4

Also, In case ITR4 is being used by a salaried person because of equity intraday/ derivative trading, Short Term Equity gain/loss has to be included as business income and loss can be set up against business loss for next 8 years.

Hope my understanding is correct and would request comments from experts if I have erred.

5. I would be glad if a separate blog can cover guideline for maintaining profit/loss details for various segments (Long Term, Short Term, Intraday & derivatives) and where these entries should be added in respective ITR form.

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