how to calculate share trading income in india?
November 19th, 2008 | by Thomas |
supriyad7 asked:
sir
i am an active trader in stock market through stock,FO both. i show it as bsn. income.during buy/sell i have to pay following charges 1. brokerage 2. service tax 3. stt 4.education cess 5. higher education cess 6.stamp duty 7. turnover charge
my question is that can i deduct these expenses from my profit amount to get the actual profit figure. pls. help me
sir
i am an active trader in stock market through stock,FO both. i show it as bsn. income.during buy/sell i have to pay following charges 1. brokerage 2. service tax 3. stt 4.education cess 5. higher education cess 6.stamp duty 7. turnover charge
my question is that can i deduct these expenses from my profit amount to get the actual profit figure. pls. help me
3 Responses to “how to calculate share trading income in india?”
By manishax6in on Nov 21, 2008 | Reply
Since you are treating them as your business income and not as short term capital gain and long term capital gain you are entitled to get deduction of all the expenses from your profit.
Mr dear Friend follow a simple accounting rule all the legitimate expenses incurred in earning those profit would be available as abatment. Not only those expenses if you have some office expenses these also can be claimed.
PL note that the expenses shown by you can also be claimed even if you treat the profit as short term capital gain or long term capital gain
Hope I have been able to reply you
By q4tax on Nov 21, 2008 | Reply
F O is business activity now as per amendment in I T Act.
If you purchase and sale shares without taking or giving delivery, that is speculation business. Any loss sustained in that kind of Speculative transaction is not allowed to be setoff with F O or any other income. You can only adjust such speculation loss with any speculation gain.
Suppoose you got loss in such day trading Rs 1o Lakhs and your GAIN in F O was 10 lakhs. You will have to pay tax on Rs 10 lakhs as business income and Rs 10 lakh loss will be carried forward to next year.
The expense which you have stated is allowable , but only service tax,brokerage ,stamp duty and turnover charge.
By franc91 on Nov 23, 2008 | Reply
Yes, it’s added to your cost of stock.