Professional Updates

 

Do you wonder why an assessee will receive a notice for non-filing of return/ non-inclusion of certain information? Department can send a notice in case the information provided in SFT is not included in the income tax returns. Hence be careful while carryout the financial transactions and make sure the transactions are in harmony. We are all aware that we are under the lens of income tax department with respect to most of the financial transactions. Let me go through few of the transactions which are being reported by the financial intermediaries. What is SFT? SFT stands for Specified Financial Transactions OR Statement of Financial Transactions is a report filed by SPECIFIED PERSONS mentioned under the Act. The report is filed every year by the Specified Persons on or before 31st May. Does bank/post office report all the transactions to the department? NO. Only certain specified transactions within the specified limits will be reported by them. Hence, make sure you file an income ret...

           

Head of Income Income from futures and options will be considered as   Non-speculative business income   and taxed under the head "Income from business/profession". Calculation of turnover: Turnover for this purpose shall comprise of 1) Profit from sale of derivates + 2) Loss from sale of derivatives + 3) Premium received while writing an option Taxation of profits Non-speculative business income shall be taxed at normal rates applicable to the assessee. Loss from trading in F&O Loss from F&O trading during the year can be set-off against any other head of income  except  Income from salary. Ex: Loss from F&O can be set-off against Income from house property/Income from other business/profession/ Income from other sources earned during the year. Carry forward of Loss Loss remaining after set-off during the year can be carried forward to next 8 A.Ys and can be set-off from Income from other heads except salary in future years. To be eligible to carry forwa...