Podcast script: Intraday trading tax audit
Angel One podcast ke naye episode me aapka swagat hai.
Kya aapko pata hai ke 2016 me India me sirf 2 lakh traders the. Aaj ki taareekh me ye number 1.5 crore tak pahunch chuka hai. In fact, kuch saal pehle tak market me invest karne ka arena kaafi hadd tak male-dominated that. Aaj, 20% traders women hain! 4 saalon me hi humare desh me market trading ka face hi badal gaya hai!
For a long time, log sochte the ke stock market me trading karna speculation ka khel hai. Woh stock market trading activities ko gambling se compare karte rahe hain. In fact, people have dismissed this as a matter of luck. Lekin ab, jaise information ki availability badhi hai, people have realised that trading in the stock market is just as rigorous as any other profession If you are only beginning in intraday trading, aisa ho sakta hai ke aap thoda overwhelmed ho. In fact, beginner ho ya experienced trader, intraday trading ke concepts sabko hi samajhne hote hain. One such tangent is the taxability in intraday trading.
But before we begin, here’s a short introduction on intraday trading.
Simple si baat hai - trading ke under traders stocks ko buy ya sell karke profits earn karte hain. Intraday trading ka matlab hai ki ye buying ya selling ki transaction same day ki jaati hai. This means ke intraday trade ko trading day end hone se pehle close kar dete hain. Aise me ultimately shares ki delivery nahi hoti - the only output at the end of the day is profit.
Intraday trading ka pura objective, pura goal hi profit earning hai - jiske liye trader stocks ki fluctuations par bet karke buying aur selling karta hai.
Ab jaante hain ki intraday transactions par income tax ki kya treatment hoti hai. Uske liye aapka pehle kuch important terms janna zaruri hai.
Pehle term hai stock investor. Stock investor woh hota hai jo apne long-term gains ke goal ko dhyan me rakhte hue kuch shares khareedta hai. Woh shares ki delivery lekar unhe apne paas rakhta hai with the objective of earning a profit when share prices increase in future.
Doosra term hai stock trader. Stock trader woh hota hai jo shares me trade karta hai lekin unhe apne paas rakhne ke bajaye share prices ki daily fluctuations ko use karke profit earn karta hai. Is tarah stock trader kabhi bhi shares ki delivery nahi leta.
Next term is short term gain or losses. Agar aap apna stock 12 mahine ke andar andar sell karte hain, usse hone wale profit ya loss ko short-term gain a loss kaha jaata hai. Agar aap apna stock 12 mahine apne paas hold karne ke baad sell karte hain, usse hone wale profit ya loss ko long-term gain a loss kaha jaata hai.
Ab hum discuss karte hain intraday trading ki taxability aur tax provisions.
Intraday trading karne se aapko jo income milti hai, use speculative business income kaha jaata hai. Income Tax act 1961 ke Section 43 (%) ke according, intraday trading se aapko jo bhi profit hota hai, use aap apni taxable business income me add karenge. Uske baad uska treatment waise hi hoga jaise business income ka hota hai - uspar relevant income tax slabs ke against rate of tax charge kiya jaega.
Lekin as a taxpayer-trader, aapke paas trading profit ko treat karne ke liye do options diye jaate hain to choose from. Dono options ki tax implications different hoti hai. Chaliye inn tax implications ko discuss karte hain.
Pehla case hai presumptive business income ka. Income tax act ke Section 44 AD ke under aapka intraday trading ka profit 6% par tax kiya jaata hai - agar aap isse presumptive business income ki tarah treat kar rahe hain. Iss case me aap losses ko carry forward karke profits ko offset nahi kar sakte.
Iss system ke under income tax return file karne ke liye ITR 3 form submit kiya jaata hai.
Doosra option hota hai ke aap apne intraday trading profit ko normal business income ki tarah treat karein. Iss case me iss profit ko normal profit me add kar diya jaega. Aapki total taxable income hogi aapka pura turnover minus expenses. Isme aap kuch deductions claim kar sakte ho jaise ki office rent, depreciation, brokerage charges, internet ki cost, phone ke expenses, books, consultation fees, etc.
Aur agar aapne intraday trading me losses incur kiye ho to aap unhe 4 saal tak carry forward kar sakte hain. Isse aapki taxable income future me 4 saal tak kam ho sakti hai. Bas iss baat ka dhyan rakhiyega ke agar losses ko carry forward karna hai to Income tax return due date se pehle file karna hoga.
FInally, let us talk about the intraday trading tax audit.
Audit ka matlab hota hai aapke accounts ka verification.
Income tax act ke section 44AB ke under, iss tarah ka tax audit 2 cases me compulsory ho jaata hai. Pehla case hai jab aap presumptie business income ka system use kar rahe ho aur aapki ek saal ki Presumptive business income turnover (profit/loss) Rs. 2 crore se zyada ho. Doosra scenario hai jahan aap normal business income wala method use kar rahe ho. Under this, agar ek financial year me aapka Normal business income turnover ( profit/loss) Rs 1 crore se zyada hota hai toh audit karwana compulsory hota hai.
Audit karwane ke liye aapko ek professional chartered accoutnant yaani ki CA ko hire karna hoga. CA usually aapki financial statements banane me bhi madad karte hain, accounts audit karte hain, tax audit report ko Form 3CD ke under file karte hain aur ITR submission me bhi help karte hain.
Agar aap intraday trading karna chahte hain, toh maidan me utarne se pehle ye saari information lekar jayein. To start, just open a demat account with Angel One.
Kya aapko pata hai ke 2016 me India me sirf 2 lakh traders the. Aaj ki taareekh me ye number 1.5 crore tak pahunch chuka hai. In fact, kuch saal pehle tak market me invest karne ka arena kaafi hadd tak male-dominated that. Aaj, 20% traders women hain! 4 saalon me hi humare desh me market trading ka face hi badal gaya hai!
For a long time, log sochte the ke stock market me trading karna speculation ka khel hai. Woh stock market trading activities ko gambling se compare karte rahe hain. In fact, people have dismissed this as a matter of luck. Lekin ab, jaise information ki availability badhi hai, people have realised that trading in the stock market is just as rigorous as any other profession If you are only beginning in intraday trading, aisa ho sakta hai ke aap thoda overwhelmed ho. In fact, beginner ho ya experienced trader, intraday trading ke concepts sabko hi samajhne hote hain. One such tangent is the taxability in intraday trading.
But before we begin, here’s a short introduction on intraday trading.
Simple si baat hai - trading ke under traders stocks ko buy ya sell karke profits earn karte hain. Intraday trading ka matlab hai ki ye buying ya selling ki transaction same day ki jaati hai. This means ke intraday trade ko trading day end hone se pehle close kar dete hain. Aise me ultimately shares ki delivery nahi hoti - the only output at the end of the day is profit.
Intraday trading ka pura objective, pura goal hi profit earning hai - jiske liye trader stocks ki fluctuations par bet karke buying aur selling karta hai.
Ab jaante hain ki intraday transactions par income tax ki kya treatment hoti hai. Uske liye aapka pehle kuch important terms janna zaruri hai.
Pehle term hai stock investor. Stock investor woh hota hai jo apne long-term gains ke goal ko dhyan me rakhte hue kuch shares khareedta hai. Woh shares ki delivery lekar unhe apne paas rakhta hai with the objective of earning a profit when share prices increase in future.
Doosra term hai stock trader. Stock trader woh hota hai jo shares me trade karta hai lekin unhe apne paas rakhne ke bajaye share prices ki daily fluctuations ko use karke profit earn karta hai. Is tarah stock trader kabhi bhi shares ki delivery nahi leta.
Next term is short term gain or losses. Agar aap apna stock 12 mahine ke andar andar sell karte hain, usse hone wale profit ya loss ko short-term gain a loss kaha jaata hai. Agar aap apna stock 12 mahine apne paas hold karne ke baad sell karte hain, usse hone wale profit ya loss ko long-term gain a loss kaha jaata hai.
Ab hum discuss karte hain intraday trading ki taxability aur tax provisions.
Intraday trading karne se aapko jo income milti hai, use speculative business income kaha jaata hai. Income Tax act 1961 ke Section 43 (%) ke according, intraday trading se aapko jo bhi profit hota hai, use aap apni taxable business income me add karenge. Uske baad uska treatment waise hi hoga jaise business income ka hota hai - uspar relevant income tax slabs ke against rate of tax charge kiya jaega.
Lekin as a taxpayer-trader, aapke paas trading profit ko treat karne ke liye do options diye jaate hain to choose from. Dono options ki tax implications different hoti hai. Chaliye inn tax implications ko discuss karte hain.
Pehla case hai presumptive business income ka. Income tax act ke Section 44 AD ke under aapka intraday trading ka profit 6% par tax kiya jaata hai - agar aap isse presumptive business income ki tarah treat kar rahe hain. Iss case me aap losses ko carry forward karke profits ko offset nahi kar sakte.
Iss system ke under income tax return file karne ke liye ITR 3 form submit kiya jaata hai.
Doosra option hota hai ke aap apne intraday trading profit ko normal business income ki tarah treat karein. Iss case me iss profit ko normal profit me add kar diya jaega. Aapki total taxable income hogi aapka pura turnover minus expenses. Isme aap kuch deductions claim kar sakte ho jaise ki office rent, depreciation, brokerage charges, internet ki cost, phone ke expenses, books, consultation fees, etc.
Aur agar aapne intraday trading me losses incur kiye ho to aap unhe 4 saal tak carry forward kar sakte hain. Isse aapki taxable income future me 4 saal tak kam ho sakti hai. Bas iss baat ka dhyan rakhiyega ke agar losses ko carry forward karna hai to Income tax return due date se pehle file karna hoga.
FInally, let us talk about the intraday trading tax audit.
Audit ka matlab hota hai aapke accounts ka verification.
Income tax act ke section 44AB ke under, iss tarah ka tax audit 2 cases me compulsory ho jaata hai. Pehla case hai jab aap presumptie business income ka system use kar rahe ho aur aapki ek saal ki Presumptive business income turnover (profit/loss) Rs. 2 crore se zyada ho. Doosra scenario hai jahan aap normal business income wala method use kar rahe ho. Under this, agar ek financial year me aapka Normal business income turnover ( profit/loss) Rs 1 crore se zyada hota hai toh audit karwana compulsory hota hai.
Audit karwane ke liye aapko ek professional chartered accoutnant yaani ki CA ko hire karna hoga. CA usually aapki financial statements banane me bhi madad karte hain, accounts audit karte hain, tax audit report ko Form 3CD ke under file karte hain aur ITR submission me bhi help karte hain.
Agar aap intraday trading karna chahte hain, toh maidan me utarne se pehle ye saari information lekar jayein. To start, just open a demat account with Angel One.
