Tabtight professional, free when you need it, VPN service. No more missed important software updates UpdateStar 11 lets you stay up to date and secure with the software on your computer. Portfolio Backtesting Software. Optimization and Trading System validation. Monte Carlo simulation, WalkForward testing, Sophisticated charting and much more. Taxation Simplified Z Connect by Zerodha Z Connect by ZerodhaCheck out our detailed module on taxation while tradinginvesting on varsity. Traders,I have been trading personally for a very long time and the tax filing times have always been the most painful part, sitting with a CA and accounting for profits, losses, expenses and others. I was in similar shoes as most of you would probably be in right now when it comes to taxation, Confused. There are a bunch of reasons for writing this post Discussing the best practices filing returns when trading the markets, important because there are divergent views on many topics among traders and CAs. Simplifying all the financial jargon CAs use. Letting know the importance of filing returns on time and implications of misfiling or not declaring trading profits or losses. Om Prakash Jain a brilliant Chartered accountant who is a Zerodha client and also runs Tax. IQ will be assisting us in putting up the blog and also in answering queries. We will together try to keep the post and the answer to the queries as simple as possible. We would appreciate if the post and the queries are pertaining to Income tax and related topics while trading stocks, futures and options, currency and commodity. Do note that this is our view and recommend you to consult your CA before taking any decision. To begin, couple of important things to know Due Dates for filing your returns Irrespective of the nature of trades you carry out your income tax returns have to be filed before July 3. September 3. 0 for companies. In case your turnover exceeds Rs. I mean the sum of settlement profits and losses in your trading account, then the book of accounts needs to be audited or if any other reasons for having the books audited the due date is September 3. Under section 2. 71 B, failure to submit the tax audit in time has a penalty of 0. Rs 1. 5 lakhs, whichever is lesser. Tax Slabs The slabs for individualsHUF are as mentioned below all persons above the age of 6. Upto age 6. 0MFAge 6. Amibroker With Crack' title='Amibroker With Crack' />Recientemente, publicamos una nota de mercado en bolsa. Esto sucede cuando el promedio de 50 das del S. Amibroker With Crack' title='Amibroker With Crack' />Age 8. Income RangeYrTax. Income RangeYrTax. B75Aknr28/hqdefault.jpg' alt='Amibroker With Crack' title='Amibroker With Crack' />Income RangeYrTax. These slabs are on your total income as an individual which is the sum of all your incomes, this may include salary, rental, trading profits and etc. An example  If I am a 3. Rs 8. 00,0. 00yr, my income tax liability would be Rs 8. Rs 0, 2. 5 5lk Rs 2. Rs 6. 0,0. 00 2. In case of companies, income tax is a flat 3. First most important thing to do for every trader is take a stance on your trading activity because the tax liability would change based on this. Following are couple of  options you have. Auto Kaufvertrag Englisch'>Auto Kaufvertrag Englisch. You are an investor, who buyssells stocks once in a while and you typically would hold the investments you make for a longer period of time. You are a trader, you either actively trade stocks or f o or currency or commodity. It is your prerogative on if you call yourself as a trader or an investor, but if your actively trading on stocks or even if occasionally dabbling in f o,currency or commodity  my advice would be to declare yourself as a trader. While trading equity or Stocks. Stocks that you hold as an investment for more than 1 year a. In Case of Profits. Investor. Any profit you make by sale of shares that you have held for more than 1 year is considered as long term capital gain and if this transaction is done through recognized stock exchanges for which the STT Security Transaction Tax is already paid, is exempt from Income tax under section 1. So what this means is that if you had bought 1. Reliance shares 2 years back at Rs 7. Rs 1. 00. 0, you dont have to pay any tax on the profit of Rs 3. Note To prove this as long term capital gain, you can attach the contract notes for the buysell trades and the Demat statement which shows the creditdebit of shares, if required. Trader. Any income from buying and selling shares even if more than a year is considered as a business income. This gets added to your income and then taxes paid according to the above mentioned slabs. But since it is a business income you can show expenses in terms of internet, advisory charges etc, any charge that you have incurred for the business of trading and reduce your income liable to be taxed. Note Long term capital gain tax for shares which are not trading on the exchanges is 2. In Case of Losses. Investorlong term capital loss from shares where STT is paid cannot be adjusted against any long or short term capital gain from any source. An interesting thing to note is that if you do the same transaction without stock exchange off the market transaction, i. This is a loop hole that exists in the system presently. Trader. Your long term loss is considered as a business loss and this could be set off against other business income which is explained below in the f o section. Stocks that you buy and sell within 1 year after taking delivery to your demat accounta. In case of Profits. Investor. Any gain made by sale of shares through a recognized exchange is considered as a short term capital gain if bought and sold within 1 year. Please note that it is considered short term capital gain only if you take delivery of the shares to your demat account and then sell the shares. Short term capital gain tax presently is at 1. Trader. As a businessactive trading, any such gain is considered as a business income. This will have to be added to your other income and you will be charged taxes based on the slabs mentioned in the table above. Since it is a business income you can show business expenses to reduce the taxable income, for the business of trading some of the expenses can be broadband charges, rental charges, advisory charges, computer charges, electricity bill, professional fees and etc. Note that as a trader you are probably paying higher taxes than an investor, but this is the right approach to take. The benefit you get as a trader or trading as a business is that you can set off your expenses from the profit and also carry forward your losses to net off against any future profits, explained in the f o section below. Windows Bloqueo Este Software Porque No. In case of losses. Investor. Any short term loss arising from the sale of shares can be net off against any short term capital gain or long term capital gain in the future upto 8 years provided you have declared the loss while filing the income tax. Trader. If you are trading as a businessactive trading, such a short term capital gain loss can be considered as a business loss and net off against any income other than salary for upto the next 8 years. What this means is that if you made a loss of Rs 1. Rs 8. 00,0. 00 in a property transaction, your net tax liability would be only on Rs 7. What this means is a trader  if you make a profit, you need to pay the income tax the same year and if you make a loss you can carry forward the loss for the next 8 years and keep netting it off with any profits you make be it trading or otherwise, provided you declare the losses when filing your returns within due date. IntradayDay Trading Stocks equityWhile day trading the rules stay the same if you have declared yourself as an investor or trader. Any profits or losses from day trading is called Speculative either Speculative Profits or Speculative Losses. A person  intraday trading is automatically considered as someone who is either an active trader or trading as a business. In case of Profits. Robo Trader Amibroker afl code wizard.