The due date of filing ITR for Traders is 31^st July.

However, the date for the Trader will be 31^st October, if the trader

o   has business (including trading) that is liable to tax audit; OR

o   is a partner in a firm which is liable to tax audit.

No, filing of ITR is a completely online process involving the exchange of information & documents, after which we will process the same and prepare your ITR for filing it online.

ITR filing is a mandatory requirement for every individual who in a financial year has gross total income of more than Rs. 2.5 Lakh.

Further, even if gross total income is less thanor upto 2.5 lakh, ITR filing by an individual will be mandatory if the individual during the financial year has:-

• any asset outside India
• any financial interest in any entity outside India
• Signing authority in any Bank outside India
• Paid electricity bill of Rs.1 Lakh or more.
• deposited in Current Account Rs. 1 Crore or more.
• Spend Rs. 2 lakh or more in foreign travel
  

Income Tax has divided incomes into 5 heads (Salary, House Property, Profits from Business / Profession, Capital Gain & Other Income). Gross Total Income (GTI) is the total of all these heads of income and salary is only a part of it.

Yes, registration at the income tax e-filing portal is mandatory for availing online services. Once registered, you don’t have to go through this process again. It is a one-time registration.

In case you are about to file your ITR for the 1^st time, first, check whether you have a login created at the e-filing website of the Income Tax portal or not. You can check the same by visiting the registration page of Income Tax Portal and then feeding your PAN number and clicking on the validate button. If you are already registered it will display an error that “PAN is already registered” and if not registered, you can fill in the details asked and register yourself.

Intraday transactions qualify as speculative business income which is taxed at your slab rate. Any speculation loss is not allowed to be set off from any other income except speculative gains. Further, the losses made in the intraday is allowed to be carried forward for four assessment years only.

Trading in options or futures qualifies as normal business income (not speculative) which is taxed at your slab rate income. The losses if any are allowed to be set off from any other income in the same year except income under the head salaries. Further, the losses made in such F&O trading is allowed to be carried forward for eight assessment years.

A person who is into any business or profession is required to maintain books of accounts as per the requirements of section 44AA of the Income Tax Act, 1961. To give relaxation to small businesses/profession, income tax act has a concept of presumptive taxation, which if adopted the taxpayer can declare income at a prescribed rate and, in turn, is relieved from tedious job of maintenance of books of account.

For Small taxpayers, under the Income-Tax Act, 1961 there are following 3 presumptive taxation schemes:-

• For Business Persons- Under Section 44AD
• For Professionals- Under Section 44ADA
• For Business of Good Carriages- Under Section 44AE
  

Yes, if the person carrying on Intraday / F & O business fulfills the following criteria:

• The person should be Resident Individual, Resident Hindu Undivided Family or Partnership Firm (not LLPs)
• The person should have brokerage/ comission income or agency business.
• The turnover / gross receipt of the business should be upto  Rs. 2 Crore.
• The taxpayer should not claim any deduction under Section 10A/ 10AA/10B/10BA or Section 80HH to 80RRB.
• The taxpayer should have not opted out of presumptive scheme in the last 5 years before completion of a block of 5 years.
  

If the person's receipts are through electronic mode/cheque/NEFT/RTGS/UPI, then a minimum of 6% of gross receipts/turnover must be disclosed as presumptive income.

If the receipts are from non-digital modes, then a minimum of 8% of gross receipts/turnover must be disclosed as presumptive income.

Every person carrying on the business of intraday trading / F&O falling under the following category has to maintain books of accounts:- 

It is a process carried which can be only carried out by a chartered accountant in practice to verify whether the books of accounts prepared by the taxpayer complies with generally accepted accounting principles and the Income Tax Act, 1961. It is also carried to check whether the books of account and other records are properly maintained or not and whether the computation of the taxpayer’s income has been done correctly as per the Income Tax Act, rules and ICDS (income computation and disclosure standards).

Every person in business or profession to whom Section 44AD applies has to get books of accounts audited. The summary of the criteria laid out in Section 44AD as applicable for Intra-day / F&O business is as under:- 

Any capital asset in possession or held by the assessee for more than 36 months immediately before its transfer is treated as a long-term capital asset. Although, in respect of listed equity shares or listed preference shares, including equity-oriented mutual funds, the period of holding changes to 12 months instead of 36 months.

Further, for land and building (immovable property) & unlisted shares, the period is 24 months to be construed as a long-term capital asset.

Any capital asset which is not a long-term capital asset is a short-term capital asset.

If you transfer the long-term capital asset, it is termed long-term capital gain. You are taxed short-term capital gain for the transfer of short-term capital assets. Although, there are a few exceptions to this rule, like gain on personal movable assets or depreciable assets is always treated as a short-term capital gain.

The long-term capital gain which arises on account of the transfer of long-term capital asset will be computed as follows:

STCG arises on account of the transfer of short-term capital asset and is computed as follows:

Yes, in certain cases, capital gains can be saved by claiming exemptions under certain eligible investments/re-investments as provided in the Income Tax Act, 1961 under the chapter of capital gains.

Yes. You need to pay long-term capital gain on the same as it has exceeded 24 months. The computation method is according to the method given for computing long-term capital assets.

Yes. If you sell listed equity shares from a recognized stock exchange after payment of STT (securities transaction tax), the tax rate is flat 15% on short-term capital gain for scrips held for less than 12 months. In case one sells the same after holding it for 12 months, the tax rate is 10% after availing exemption up to a long-term capital gain of one lakh rupees.

To claim an exemption for capital gains, one needs to reinvest the capital gain or sale consideration in the asset series given in section 54. Suppose one is unable to do so immediately. In that case, they have an option to put the money in the capital gain account scheme, which can be opened in various nationalized banks that provides this facility before the due date of filing ITR for that assessment year in which capital gains have arisen.

The taxpayer then can invest money in various defined assets of section 54 from the capital gain account scheme and avail exemption.

To understand easily, one can say it's like an escrow account before making the final investment.

The government notified around 28 banks under the capital gains accounts scheme, most of which are PSUs and certain big private banks.

The income tax payment has to be made to the income tax department by doing a self-assessment and paying the same before the due date of filing the return.

Advance tax is a concept of paying the taxes in advance or on pay as you earn basis rather than lump-sum payment at the time of self-assessment.

Every person (Individual, firm, company, etc.) whose estimated tax liability for a financial after TDS deductions is Rs. 10,000 or more has to pay advance tax.

• A senior citizen aged 60 or more, being a resident without business or professional income, is not liable to pay advance tax.
• An Individual who only has a salary income.
  

The calculation of Advance tax is based on the expected tax liability of the financial year. The estimation has to be done by the taxpayer. The payment of advance tax has to be made in instalments prescribed under the Income Tax law.

Suppose the taxpayer, after paying the first/second instalment of advance tax, is of the opinion that his estimated total income is increasing and his estimated tax liability is going to increase. In that case, he needs to increase the payments in the remaining instalments and pay the advance tax accordingly. However, the taxpayer will be charged interest on short-fall in the already paid instalments.

Since it is practically not possible to estimate the income from capital gain and casual income in advance, therefore, for capital gains, if any such income arises after the due date of any instalment, then the tax calculated on capital gain shall be paid in the remaining instalments of advance tax which are due. If the entire amount of tax is so paid, then no interest for late payment is levied.

For taxpayers opting for presumptive scheme of business/ profession (not goods carraige)- 100% up to 15th March

For Others-

1. Upto 15% of tax liability - by 15th June
2. Upto  45% of tax liability - by 15th September
3. Upto 75% of tax liability - by 15th December
   
4. 100% of tax liablity- 15th March