Read the full story here: www.livemint.com/money/personal-finance/fo-trade-share-trading-tax-demand-itr-income-tax-futures-and-options-tax-department-11736959157824.html
@@livemint F&O Traders’ Guide for Tax Compliance to Avoid Tax Notices Trading in Futures and Options (F&O) is considered a **business activity** under Indian tax laws, even for individuals. Proper compliance with tax rules is crucial to avoid tax notices. Here’s a guide: 1. Report F&O Income Properly - Nature of Income: - F&O income is treated as business income (non-speculative business income). - File the Correct ITR: - Use ITR-3, which allows reporting of income from business or profession. - Total Turnover: ( To check Tax Audit Applicability) - Turnover for F&O trading includes the absolute sum of profits and losses, plus premiums received on options. Example: - Profit: ₹1,00,000, Loss: ₹50,000, Premium received: ₹30,000 - Turnover = ₹1,00,000 + ₹50,000 + ₹30,000 = ₹1,80,000. ( Report net profit ₹ 80,000) 2. Maintain Accurate Records - Keep records of: - Daily trade statements and contract notes from your broker. - Bank statements for transactions. - Ledger accounts showing income, expenses, and turnover. - Preserve these documents for at least 6 years for audit or scrutiny purposes. 3. Tax Audit Compliance - A tax audit is mandatory under Section 44AB if: - F&O turnover exceeds ₹10 crore (with digital transactions below 5%). - F&O turnover exceeds ₹1 crore, and you declare profits below the prescribed limits of Section 44AD. (Consult with Tax Experts) 4. Pay Advance Tax - Calculate your expected income and pay advance tax if your total tax liability exceeds ₹10,000 in a financial year. - Due dates: - 15% by June 15 - 45% by September 15 - 75% by December 15 - 100% by March 15 5. Report and Carry Forward Losses - Set Off Losses: - F&O losses can be set off against other business income or non-speculative income. - Carry Forward: - Report F&O losses in the ITR to carry them forward for 8 years, where they can be adjusted against future business income. - Ensure proper reporting of losses, as unreported losses cannot be carried forward. 6. Match Broker Reports with ITR - Ensure that the income, turnover, and other details in your ITR match: - Your Annual Information Statement (AIS). - Details submitted by brokers to the Income Tax Department. - Discrepancies could trigger notices. 7. Avoid Common Mistakes - Non-Filing: Failure to file an ITR can lead to penalties. - Wrong Form: Filing ITR-1 or ITR-2 instead of ITR-3. - Incorrect Turnover Reporting: Miscalculating turnover by not including absolute values. - Ignoring Advance Tax: Late payments attract interest under Sections 234B and 234C. 8. Be Vigilant with New Reporting Requirements - Cross-verify your details in the Annual Information Statement (AIS) and Form 26AS. - The Income Tax Department uses data analytics to flag inconsistencies. 9. Consult a Tax Professional - Tax laws for F&O trading can be complex. Regular consultation with a tax advisor ensures compliance, optimized tax payments, and prevention of errors that might lead to notices.
Leave this world is only option for people like Rajesh. Their life is doomed & his family. This country is only for the rich who can evade thousands of crores of taxes & roam like King. Can any bhakt tell everyone what was the tax Mukesh Ambani paid as an individual , not corporate tax but individual income tax? Or any of the big industrialists
This is basically tax terrorism. Since PAN is linked to the trading account, and the broker already has the data of the F&O transactions, the profit and loss data is already available digitally with the I-T department. Why should the income tax department need another declaration in the I-T returns? The laws and rules and regulations in India are deliberately made complex so that it confuses the common man, leading to greater chances of non-compliance. Then the tax authorities call it a "crime" and harass the poor individual.
The story mentioned is half-truth, and the real truth is much more horrible. The worst part is that the High court stayed the demand and passed an order closing the case. It was reopened in spite of the court order just to harass the farmer.
@@anujsethi7845 stupic comment why assess job it's not pay tax as we gets any benifit why do they keep forgiving big corporate .keep harrasiny poor people. People like u giving gyan
@@anujsethi7845 It very basic finance rule that sales less purchase is profit.. In any part of the world sales+purchases is not considered as profit.. Indian bureaucrats makes every basic thing as complex so that they can fill there pockets and to harass common man
@@balaji1980 IT departement only need to ask about loss made by farmer. He can only lose as much money he has. IT department can ask only what is source of income of your loss ? Why they are checking turnover. Such an useless guys in IT department. If you are trading multiple times in a day and taking margin , your turnover will be much more higher beyond anyone imagination . High turnover is possible even with small money in trading
@@NikkalCnlol speak of 97.5% tax by Indira Ghandhi . Congress boot lickers. Coming to the current case we need to investigate as to how ma y trades were done in f&o.
Looting common man money and diverting to useless schemes for people who are extremely ignorant and barbaric.. giving reservations for people who make system even worse ( kind of like chain reaction ).. schemes and free schemes and subsidies for people who's main agenda is to exploit women convert them and make 10's of kids and make their religion grow (you know which religion it is ) and finally leave the women on road
@@NikkalCn Chamcha spotted. He thinks no looting happened in Congress raaj. If bjp lovers are andh bhakts, then Congress lovers are Andh-Bhakt Pro-MAX.
He will say that, then they will say don't be an entrepreneur because it is risky. Then they will say don't get a private job it is risky. Basically, you can become a government employee or a CA. You cannot dream of doing anything different in India.
I think tax on profit only. Not on transaction because you are already paying stt, gst, and other taxes, further you are rotating the same amount on buying and selling
@@amit9023 All demat accts are linked to Pan. Pan is linked to Adhar & Bank Accts. Govt knows all transactions. If they can send you notices, they can also find out if you made profit or loss. And they are only active when they target common citizens. They wont stop online scams. They wont go after the crony capitalists or corrupt bureaucrats.
It's not necessary to report a loss when you are in loss . Only if you want to claim it in future once you become profitable,then it is required..time period is 10 years .
This type of tax terrorism and bureaucratic torture of people is exactly why millionaires are leaving the country. In addition, there are no good infrastructure facilities, dirty roads, abysmal healthcare, and poor quality of living. Yet the government wonders why people are leaving India.....
@@anujsethi784569crore turnover, and 26lakh loss, The government wants to pay income tax for turnover? Very stupid government or Stupid innocent people like you
@@anujsethi7845calculation of profit by adding sales + purchase is tax terrorism. What if reliance and Tata pays tax not on profit but sales + purchase they will go bankrupt.. it's basic economics 😑 even if you consider it sales and purchase then from that calculation also he made 26 lakh loss...these dumb Income tax people are adding sales + purchase instead of sales - purchase.
We are living in a country where tax official are clearing tough written and oral exam . These officers are top rankers. If they dont know basic arithmetic and harrass a semi literate farmer. The joke is on them.
How is guy to blame here? It the dumb people in income tax department getting fat bribes and fat salay from our taxes while too lazy to work to blame? Dose not this case highlight that? They want to tax a guy more money than he is earned and you are saying people need financial literacy. What use is that when people in income tax department lack financial sense themselves?
Take my case I'm not a FNO trader, but received a tax notice for 10CR. i received notices and my auditor replied to the notices for the points raised but they didn't agree since face less person is not bothered about checking and issued orders. I have approached the authorities and told them even if i sold from ancestors property to kitchen spoon i won't be able to pay that demand. They attached my bank account and are asking for the proceeds 20% which is 2 Cr. So no business this year and no taxes from my end.
I Heard that some company lured him with profits and made a loss of some 25+ Lakhs, But Due to lack of awareness he didnt show the loss in the ITR for that year . Now income tax team has raised an alert by considering the full contract value as the transaction against his income and also included interest for 10+ years on that total contract value. Now as per rule to file the grievance , he has to deposit 20% of the dispute value(69 crores) and it will be remitted after the issue is sorted. Until then all his bank and asset will be freezed. Worst system
And we have to celebrate independence day, republic day etc etc and believe for the people by the people bullshit..since so called independence we are ruled by feudalistc government system borrowed from British.
phle kharido to tax do fir loss me bechho fir tax do uper se broker charges alag se do, aur agar by luck profit agya 10₹ ka to uspe bhi income tax bharo. loss me bhi tax bharo wah. aur kahi bimar pr gye to gov hospital me bed k liye tax bhro kyuki pvt hospital to hath k bahar honge. admi ki jindagi sasti hai bas
If they are efficient, how can they suck the blood of the middle class people like these? No, No. They will eat up whatever the meagre income the middle class makes and get rich.
That’s how our govt departments work. GST department sent me notice recently for the financial year 17-18 which is after 7-8 years and added penalty interest cost etc etc to pay for no mistake from my side. Anyhow CA is handling my case now.
Same case @@algotrader_sreenivas they open a 18-19 gst, everything is matched claim gst and everything, because of their system error they didn't cross check the gst for both parties, can you believe that 😂 after submitting all required documents they yet to reply
When bank accounts, demat accounts are linked to aadhar now, why make it mandatory to report it. Now if he goes after all these hassles, will the income tax officers go and do farming works?!!! 😅
Well you read it- it's soon everything you do will be recorded and put in balance sheet by AI and the notice will also come by and AI just police department will come harras you.
In India it has become impossible for a common man to become rich. All the earnings are stolen away by the GST and taxes leaving peanuts for the common man.
BTW... why is the IT department reopening an 8 year old case? Previous guideline said they can do so upto 6 years. This should be null and void by the way of default.
A good number of people discredit the effectiveness of financial advisors in exploring new markets, but over the past 10years l've had a financial advisor consistently restructure and diversify my portfolio/ expenses and l've made over $3million in gains... might not be a lot but i'm financially secure.
How did you manage to achieve that level of growth? I've been trying everything I can to improve my investments, I want to retire in a few years and I need a better diversification.
I'd recommend you get yourself an financial advisor if you really want to get in instead of starting with guesses... They're not half as expensive as you think and know the market better.
I have always had a deep interest in this and would really love to start from somewhere anywhere actually, l believe this is what our future is all about.
Without a doubt! Mr Davis has been my financial advisor ever since I lost my job. He has an exceptional skill for analyzing market movements and spotting profitable opportunities. Him strategies are meticulously crafted based on thorough research and years of practical experience.
How can IT dept consider total turnover as total income...what kind of accounting is that.... I seriously doubt when govt say india has become 4 trillion economy...it might be 4 trillion debt...
And They say they have implemented AI 😂 what is the use of system and technology if you cannot distinguish between loss and income. Majority of people in the country doesn't understand the Tax IT department should be more understanding in dealing and if ever need to apply penalty make it reasonable
There are thousands of people who made losses in F&O and didn't report it in ITR as it was loss. Now, everything is digital transactions. There is definite proof of loss. Why further money to be given?
File a writ before High Court to waive off the deposit to file an appeal before Income Tax Commission. If there are genuine grounds you can directly move before the High Court to quash the Income Tax Notice.
A farmer who shows 26lakhs as losses in F&O. He does not have access to email. He is a small farmer. 68crs in transactions. A broker friend using his account. None of these are adding up. You guys should improve your narrative skills.
Dude someone might have approached him and traded on in his account. Also in F&O if you put 10k the share have is like 1 lakh or something so for one one 10K transaction the total turnover is 2L with loss or profit. What the IT department is doing is they are considering the total share value both buy and sell as an income. I don’t even get how can they be so illogical.
@sankethgowda5522 exactly, they're considering the whole contract's value which is so out of the question. It's messed up. Also there shouldn't be any taxes, considering he booked the loss and he doesn't actually take anything out of the Indian economy but gives back in terms of loss. Like so illogical. Then, about ITR, they can warn the people who participate in financial markets, but they can't just tax stupidly even if he didn't file ITR. Make it mandatory for brokers to teach one about ITR and such when one opens a trading account. Only tax on profit should be there, and that is according to the tax slabs of India based on business income.
These types of unwanted financial harassment from IT department must be stop. They can track traders turnover but can't track their actual PnL, is it believable?
This is why Filing ITR is important. I trade F&O and i file ITR whether i make profit or incur losses. In fact, if someone incurs losses in F&O in one year and makes profit on the next, then the losses can be carried forward to save taxes on the 2nd year's income. But to do that, ITR needs to be filed. That's why everyone should file ITR whether it's a profit or a loss. This is a farmer and probably doesn't know that ITR has to be filed.
Underrated comment. Indian middle class is getting its life squeezed out by our corrupt administration. Unless there is administrative reforms, this country is heading towards chaos.
This is a Country where taking a breather is none less than a struggle with laggard infrastructure and curropt system. But still we talk about The GROWING GDP.
Isn’t the it dept know that he made of loss of 26 lakhs ?. Why not. When the profit is made , u send us notice to pay the tax . When a loss is made , we have to inform the It dept that a loss is made even through they already know that . If we don’t then the transaction value will be calculated as profit and we have to pay tax . What logic is this ?
Brainless IT Dept... Law is strange why this 20% payment for appeal? .. Needs to be repealed immediately. Tax dept totally out of touch with reality...
What nonsense. How can they treated total turnover as income. This officer should be suspended. They can destroy someone life for nothing. This country is the hand of incompetent officer. Who only want to appease their bosses. Shameless system.
The tax department knew what happened! Still they did this. Is pure evil! They think hard earned money is piece of paper? They could have dismissed the case when came to knowledge but they did this. And they keep Doing it.
@@TheNikunjAgarwaleven if its a lie or not A farmer in india has to pay that amount of tax/penalty... Any logical justification? What's your commen sense is saying? ... Isn't this loot?
@@LX_B bhai farmer hai to law of land follow nahi karega kya….whenever any one do huge transactions in fno trading , he has to make his account audited by CA and has to file audited return otherwise how can income department access his income ..now after making this mistake, he didn’t even reply to the notice given to him by IT Department. Thus this is a clear cut caee of income tax court case
Bhai i was there thats why i know this is right action. If they will allow one man to rule break and let him go unnoticed than you cant even imagine that what will be the consequences of that on the whole taxation system
Wrong tax calculation based on turn over . one can easily get 10 cr turnover daily in FNO trading easily (Assuming 10L investment ,Zero brokerage,) Multiple trading i.e 10 trades per day and lose the small money . I tried FNO trading for one year ,lost money one Lakh capital,Lost the profits and my turnover average is 2Lakhs per day,I quit trading. Now Going to another job. I never filed ITR , in Future , New filing will i also receive same kind of taxation based on my past history? . If Tax is for only Profits not on losses then i am not going to get Tax 😀
Indian system is full of bewkoof people. They send notice to any one. They don’t understand basic thing like turnover can go much higher if anyone trade multiple time in day. You don’t need huge amount
@@MayurrWagh Private sector --Garments company Quality checker(can get good salary with experience)---Also studying for exams..I have BE degree . need to apply in IT
Now what is the difference between British rule and Indian Democratic rule. people shouldn't leave the country for that politicians who thinks people can be cheated should the ones to leave.
I have done my e-filing under ITR 1 for FY 24-25 and is processed long back.But I have an F&O loss of around 5 lakhs.Not aware about the need to show F&O losess until i come across this video.What should i do know.Can someone please suggest me what should i do now.
Not knowing the law does not mean can get away from it. Hire a chartered accountant to resolve the issue. F&O is like betting. Gets addicted until you loose everything.
This is crazy!!! Even the CA's say that if you're in loss you don't have to show the P&L in the Taxes. Is this a new rule to show trading F&O Losses as part of ITR? What about all those years people have not shown in their ITRs?
Who is that idiotic CA?..Trading in F&O is considered as business,Trading in cash market is considered speculation..so in business you have to disclose losses too while filing,you can't avoid it..
wow even on loss they consider as income what a joke of tax department, they didn't think to relief him. this country no longer for middle class or lower class
I am also doing F&O but overall I am in loss and my annual income does not comes under taxation(less than 2.5 lakhs). Do I have to file ITR or I have to face any problem like this. Please reply.
I have had loss in intraday fno, stocks etc in 2020 to 2023. Never shown this in ITreturn s. Now not filing returns as I have no income. Am I in trouble ? Pls help@@FOTaxationIndia
The farmer was doing FnO trades online but had no access to email? And why was he ignoring the notice. Firstly people arent financially literate, then blame government.
As a farmer, he is not accustomed to pay taxes.. He can do trading online but doesn't access his emails? Looks like he tried to dodge the taxes and took IT dept litely
The issue is not about F&O but the draconian law that to fight the case in court one has to pay 20% of the reported tax upfront. Nowhere in the world such law exists. That's the point.
its better to stop striving for earning money for better life here in INdia people who don`t do much work or enjoy gets govt subsidies and are tension free what is the need for us to strive and then get hit by all the hurdles if we try to live independently with self respect ?
It's bjp's failure and corruption that is exposed .... Let Nirmala Sitaraman and Modi apologize to all Indians and working class citizens for unfair TAX on middle class people, Unemployment , uncontrollable poverty ratio, unrest communal politics
I have paid my tax yet two times sent notice....at Last i have to submit bill details again....now....no further notice again....how bogus system.... Get well soon tax department
I think its the broker glitch 🤔 or something else beacuse due to loss their is no chance of come such notices but if someone used his pan and earned money profit thn it could be the reason 🤔
Government portals are neither user-friendly nor fully functional, which raises concerns when the government expects citizens to strictly comply with regulations while failing to meet its own standards.
When you go on trading taking leverage you can reach 10 million trading in broker app, but that's not even a capital, we trade 3-4 times even 5000 capital trading with leverage would be 2lakh, i think there is no transperancy accuracy in all the tax system
I don’t thinks it’s Rajesh’s mistake. The tax dept just doesn’t function Upto the mark it ideally should. A simple analysis of trading a/c vs Bank account for a max 20 mins to 1hr could have helped them determine if an individual was evading tax or not. With AI and technological advancements, this analysis could have saved so much effort of sending notices, freezing accounts and would have spared the individual from running around to employ additional manpower to resolve this issue that was triggered by someone’s laziness.
This is a fit case to be filed with the High Pitched Assessment Committee as the additions are humungous which has caused genuine hardship to the Assessee.....We can also file a Stay Petition for the entire demand with the Assessing Officer and the PCIT and not required to pay the 20% of the tax demand. The Penalty Proceedings shall be kept in abeyance until the disposal of the appeal.
I have made a inteaday trade with loss of 27 rupees do I need to report it as business income or I can proceed filling itr 2 and mark it under stocks income
The income tax should remove the 20% Stay Sum, so that at least they can submit a plea for the error made by income tax department, so people don’t have to face consequences
Tax terrorism. A person who is unable to pay even lakhs of rupees and he can't fight without giving 20% amount which is 13 crore plus . What a failed system .
Let me explain. The way IT Department calculates turnover it's different. Moreover this trading stuff happened 10 years ago. So in addition to tax liabilities, IT attached interest rate. Surcharge, fees and what not. This resulted in a huge tax demand. (If you want total calculation, I am ready to share it)
For 69 crore turnover you don’t need 69 crore in bank account. Earlier there was huge margin facility in 2014 for option trading with cover order. Even with 10 lakh rupee you can do 69 crore turnover. With 10 lakh you get 1 crore trading value , 10 times margin, and same day you can do buy sell again n again . Your turnover easily will cross 69 crore . Calculations are very misleading in trading
@@gruty728It’s not believable that 10 lakh trades can lead to 69 crore turnover a year. Maybe atleast 1 crore is needed for 69 crore turnover. Specially when he made loss and no profit.
@@johnlogan4303 instead of turnover income tax department should focus on loss made by him . Why ? Because you can lose as much you have even if broker provides you leverage. Broker will not take loss on client behalf . No where it is mentioned how much he lost. Turnover is misleading because it consider buy and sell both , including leverage . You can do 100 times buy sell in day , easily you will cross 100 CR . You will have money to do 100 time transaction because you may profit in 1 trade and loss in 2nd again profit in 3rd and so on
Simple dont earn , eat govt ration and live. Live in bubble.Be slave Dont use brain . Or Vote new candidates not regular parties or you nominate yourself for sarpanch atleast.
Day by day india tax system increaseing complexity for lay may only. After geeting more and more tax what is the development of india. Please don't put a lay man such a clumsy situation.
Read the full story here:
www.livemint.com/money/personal-finance/fo-trade-share-trading-tax-demand-itr-income-tax-futures-and-options-tax-department-11736959157824.html
@@livemint F&O Traders’ Guide for Tax Compliance to Avoid Tax Notices
Trading in Futures and Options (F&O) is considered a **business activity** under Indian tax laws, even for individuals. Proper compliance with tax rules is crucial to avoid tax notices. Here’s a guide:
1. Report F&O Income Properly
- Nature of Income:
- F&O income is treated as business income (non-speculative business income).
- File the Correct ITR:
- Use ITR-3, which allows reporting of income from business or profession.
- Total Turnover: ( To check Tax Audit Applicability)
- Turnover for F&O trading includes the absolute sum of profits and losses, plus premiums received on options. Example:
- Profit: ₹1,00,000, Loss: ₹50,000, Premium received: ₹30,000
- Turnover = ₹1,00,000 + ₹50,000 + ₹30,000 = ₹1,80,000. ( Report net profit ₹ 80,000)
2. Maintain Accurate Records
- Keep records of:
- Daily trade statements and contract notes from your broker.
- Bank statements for transactions.
- Ledger accounts showing income, expenses, and turnover.
- Preserve these documents for at least 6 years for audit or scrutiny purposes.
3. Tax Audit Compliance
- A tax audit is mandatory under Section 44AB if:
- F&O turnover exceeds ₹10 crore (with digital transactions below 5%).
- F&O turnover exceeds ₹1 crore, and you declare profits below the prescribed limits of Section 44AD.
(Consult with Tax Experts)
4. Pay Advance Tax
- Calculate your expected income and pay advance tax if your total tax liability exceeds ₹10,000 in a financial year.
- Due dates:
- 15% by June 15
- 45% by September 15
- 75% by December 15
- 100% by March 15
5. Report and Carry Forward Losses
- Set Off Losses:
- F&O losses can be set off against other business income or non-speculative income.
- Carry Forward:
- Report F&O losses in the ITR to carry them forward for 8 years, where they can be adjusted against future business income.
- Ensure proper reporting of losses, as unreported losses cannot be carried forward.
6. Match Broker Reports with ITR
- Ensure that the income, turnover, and other details in your ITR match:
- Your Annual Information Statement (AIS).
- Details submitted by brokers to the Income Tax Department.
- Discrepancies could trigger notices.
7. Avoid Common Mistakes
- Non-Filing: Failure to file an ITR can lead to penalties.
- Wrong Form: Filing ITR-1 or ITR-2 instead of ITR-3.
- Incorrect Turnover Reporting: Miscalculating turnover by not including absolute values.
- Ignoring Advance Tax: Late payments attract interest under Sections 234B and 234C.
8. Be Vigilant with New Reporting Requirements
- Cross-verify your details in the Annual Information Statement (AIS) and Form 26AS.
- The Income Tax Department uses data analytics to flag inconsistencies.
9. Consult a Tax Professional
- Tax laws for F&O trading can be complex. Regular consultation with a tax advisor ensures compliance, optimized tax payments, and prevention of errors that might lead to notices.
Indian goverment must review tax system otherwise thre will be no forgiveness from ordinary people
Is it department want to kill people
Fraud it department or uneducated idiotes
Tax terrorism at its best. Meanwhile corporates can declare bankruptcy and get a clean chit, no need to pay debts, no taxes get a clean start 👍🏻.
How much is the corporate tax ?
Homuch is the interest for corporate loan?
What happen if any company fail to repay loan ?
Bankruptcy ka matlab pata h🤣
How is it tax terrorism? How would IT dept know that the transaction was done by an ignorant farmer?
Because they have given election funds
Terrorist religion people are talking about terrorism 😅😅😅
The income tax department is filled with scumbags. Leave this country ASAP!!!
Leave this stupid country but go where ? You should not make incomplete comments.
Very few have the means to relocate to better country, and this land has people filled with hopes but with no assets or wealth in their name.
@@AAXEVENTUREReally this is your argument.
How many countries have you visited until now ?
To conclude this is the case everywhere.
Such cases is likely to increase. But a whole different type of struggle exists in a foreign country.
Leave this world is only option for people like Rajesh. Their life is doomed & his family. This country is only for the rich who can evade thousands of crores of taxes & roam like King. Can any bhakt tell everyone what was the tax Mukesh Ambani paid as an individual , not corporate tax but individual income tax? Or any of the big industrialists
This is basically tax terrorism. Since PAN is linked to the trading account, and the broker already has the data of the F&O transactions, the profit and loss data is already available digitally with the I-T department. Why should the income tax department need another declaration in the I-T returns? The laws and rules and regulations in India are deliberately made complex so that it confuses the common man, leading to greater chances of non-compliance. Then the tax authorities call it a "crime" and harass the poor individual.
The story mentioned is half-truth, and the real truth is much more horrible. The worst part is that the High court stayed the demand and passed an order closing the case. It was reopened in spite of the court order just to harass the farmer.
It's an assessee Job.
Nothing wrong with the government.
But he can go to CIT.
He did this due to ignorance.
@@anujsethi7845 stupic comment why assess job it's not pay tax as we gets any benifit why do they keep forgiving big corporate .keep harrasiny poor people. People like u giving gyan
@@anujsethi7845
It very basic finance rule that sales less purchase is profit..
In any part of the world sales+purchases is not considered as profit..
Indian bureaucrats makes every basic thing as complex so that they can fill there pockets and to harass common man
@@balaji1980 IT departement only need to ask about loss made by farmer. He can only lose as much money he has. IT department can ask only what is source of income of your loss ? Why they are checking turnover. Such an useless guys in IT department. If you are trading multiple times in a day and taking margin , your turnover will be much more higher beyond anyone imagination . High turnover is possible even with small money in trading
Our systems are completely worst.. Looting comman man money
not the system. say the bjp govt. system was here since 1947. nobody has any issues with tax and things.
@@NikkalCnlol speak of 97.5% tax by Indira Ghandhi . Congress boot lickers. Coming to the current case we need to investigate as to how ma y trades were done in f&o.
Looting common man money and diverting to useless schemes for people who are extremely ignorant and barbaric.. giving reservations for people who make system even worse ( kind of like chain reaction ).. schemes and free schemes and subsidies for people who's main agenda is to exploit women convert them and make 10's of kids and make their religion grow (you know which religion it is ) and finally leave the women on road
@@NikkalCn Chamcha spotted. He thinks no looting happened in Congress raaj. If bjp lovers are andh bhakts, then Congress lovers are Andh-Bhakt Pro-MAX.
Bjp govt is worst govt till so far
India is a country where ordinary people are not allowed to dream of becoming rich ..if you do the whole system will come upon you
the farmer is an idiot and so are you .
But we can leave the country permanently 😂😂😂😂😂😂
@crazyboy-jk5pp that is what we need to do, if we could not, implant this wisdom into the minds of next generation..
Our country is killing us. Only way to fight is stop patrionising and spread the word.
It is often the poor and illiterate who bear the brunt of a corrupt system."
Now I understood why my CA told to avoid FnO completely
Good choice. Stay far far away from it. It is speculative trading anyway. Legalised Gambling in other words.
He will say that, then they will say don't be an entrepreneur because it is risky. Then they will say don't get a private job it is risky.
Basically, you can become a government employee or a CA.
You cannot dream of doing anything different in India.
Almost all CA himself does the F n O trading , recommend others not to do.... 😂😂
In India, it is recommended not to do anything that can profit aam admi because govt will not tolerate aam admi getting better.
😂😂😂aisa kuch nai hai
I think tax on profit only. Not on transaction because you are already paying stt, gst, and other taxes, further you are rotating the same amount on buying and selling
What you are thinking is right and logical and just way of how it should be dealt but government is about injustice and tax terrorism
You are thinking logically. Thats not how govt works.
Problem is you have to disclose transactions.. Simple
@@amit9023
All demat accts are linked to Pan. Pan is linked to Adhar & Bank Accts.
Govt knows all transactions. If they can send you notices, they can also find out if you made profit or loss.
And they are only active when they target common citizens. They wont stop online scams. They wont go after the crony capitalists or corrupt bureaucrats.
It's not necessary to report a loss when you are in loss . Only if you want to claim it in future once you become profitable,then it is required..time period is 10 years .
This type of tax terrorism and bureaucratic torture of people is exactly why millionaires are leaving the country. In addition, there are no good infrastructure facilities, dirty roads, abysmal healthcare, and poor quality of living. Yet the government wonders why people are leaving India.....
How is this tax terrorism?
@@anujsethi784569crore turnover, and 26lakh loss,
The government wants to pay income tax for turnover?
Very stupid government or
Stupid innocent people like you
@@anujsethi7845 then what you should call it? People are in terror of finance department
@@anujsethi7845calculation of profit by adding sales + purchase is tax terrorism. What if reliance and Tata pays tax not on profit but sales + purchase they will go bankrupt.. it's basic economics 😑 even if you consider it sales and purchase then from that calculation also he made 26 lakh loss...these dumb Income tax people are adding sales + purchase instead of sales - purchase.
Only RAM MANDIR in empty stomach
Shame on our countries tax system! Trust me we Indians don’t deserve this! May be IT department wants some black money!
True
So much for Digital India. And intensional complexity that a common man can’t even fight back.
We are living in a country where tax official are clearing tough written and oral exam . These officers are top rankers. If they dont know basic arithmetic and harrass a semi literate farmer. The joke is on them.
You have a lot who made it with reservation without any skills
They are not studying taxation….they study history geography constitution all those things
@@princeofheaven19
All the top bureaucrats are from general castes. Thats why they dont care about common man.
❤😂❤😂❤😂@@DiabloNemes
😅
How is guy to blame here?
It the dumb people in income tax department getting fat bribes and fat salay from our taxes while too lazy to work to blame?
Dose not this case highlight that?
They want to tax a guy more money than he is earned and you are saying people need financial literacy. What use is that when people in income tax department lack financial sense themselves?
Even if somehow he pays 20%..IT will ask how you got 13 cr
😂
😂😂😂😂👍👍👍👍
You can directly file an appeal in high court.
Good one😂😂
That is true
Take my case I'm not a FNO trader, but received a tax notice for 10CR. i received notices and my auditor replied to the notices for the points raised but they didn't agree since face less person is not bothered about checking and issued orders. I have approached the authorities and told them even if i sold from ancestors property to kitchen spoon i won't be able to pay that demand. They attached my bank account and are asking for the proceeds 20% which is 2 Cr. So no business this year and no taxes from my end.
Public was asking for transparency enjoy the faceless assessment 😅
This is very scary.
But why did you receive that notice?
Bot
Leave the country as soon as you can. Only return when this govt has been voted out.
I Heard that some company lured him with profits and made a loss of some 25+ Lakhs, But Due to lack of awareness he didnt show the loss in the ITR for that year . Now income tax team has raised an alert by considering the full contract value as the transaction against his income and also included interest for 10+ years on that total contract value. Now as per rule to file the grievance , he has to deposit 20% of the dispute value(69 crores) and it will be remitted after the issue is sorted. Until then all his bank and asset will be freezed. Worst system
And we have to celebrate independence day, republic day etc etc and believe for the people by the people bullshit..since so called independence we are ruled by feudalistc government system borrowed from British.
So if I put 25 lakh in something today I will get 69 cr.. What investment was that
@@cback12 Indian income tax investment. But we are the payers here😂😂😂 gov is investing on us.
@compounding at its best :P
phle kharido to tax do fir loss me bechho fir tax do uper se broker charges alag se do, aur agar by luck profit agya 10₹ ka to uspe bhi income tax bharo. loss me bhi tax bharo wah. aur kahi bimar pr gye to gov hospital me bed k liye tax bhro kyuki pvt hospital to hath k bahar honge. admi ki jindagi sasti hai bas
Why it department open case so late ?
Why can't they open next year itself ?
If they are efficient, how can they suck the blood of the middle class people like these? No, No. They will eat up whatever the meagre income the middle class makes and get rich.
they started thinking hardly about getting money recently.like after covid
That’s how our govt departments work. GST department sent me notice recently for the financial year 17-18 which is after 7-8 years and added penalty interest cost etc etc to pay for no mistake from my side. Anyhow CA is handling my case now.
Gst notice for fy 2017-18 can't be issued now, if need any help dm me, I'm gst officer.@@algotrader_sreenivas
Same case @@algotrader_sreenivas they open a 18-19 gst, everything is matched claim gst and everything, because of their system error they didn't cross check the gst for both parties, can you believe that 😂 after submitting all required documents they yet to reply
Isn't taxes terrorism harassing how many lacks crores written off.
When bank accounts, demat accounts are linked to aadhar now, why make it mandatory to report it.
Now if he goes after all these hassles, will the income tax officers go and do farming works?!!! 😅
Idiotic system that exists just to harass people.
Well you read it- it's soon everything you do will be recorded and put in balance sheet by AI and the notice will also come by and AI just police department will come harras you.
In India it has become impossible for a common man to become rich. All the earnings are stolen away by the GST and taxes leaving peanuts for the common man.
@@AAXEVENTUREusa, europe
Sebi is also a government right, when you can access data from UPI to tax people, you can also take data from sebi for calculation purposes right?
Why would they do that when they can suck the middle class dry?
Wtf the tax department cannot acces their own records? Contract notes etc? These people should be sued. These guys are still in the 1950s.
Bank account frozen 😢😢😢
But 20 percent to recouncil the case 😂😂😂 brainless what a law
I am terrified by seeing this
Very very bad
Who knows rajesh is telling truth or lie??
It is a curse on us. Our life is miserable here. Slowly things are collapsing.
Why can't all the people come together and do something about this tax system
Not one human being has the spine to question PM modi and his wife nirmala bish about tax terrorism... And get his reaction?
They don't have spine to face question
🎉 comment and confused at first reading 😊
BTW... why is the IT department reopening an 8 year old case? Previous guideline said they can do so upto 6 years. This should be null and void by the way of default.
A good number of people discredit the effectiveness of financial advisors in exploring new markets, but over the past 10years l've had a financial advisor consistently restructure and diversify my portfolio/ expenses and l've made over $3million in gains... might not be a lot but i'm financially secure.
How did you manage to achieve that level of growth?
I've been trying everything I can to improve my investments, I want to retire in a few years and I need a better diversification.
I'd recommend you get yourself an financial advisor if you really want to get in instead of starting with guesses...
They're not half as expensive as you think and know the market better.
I have always had a deep interest in this and would really love to start from somewhere anywhere actually, l believe this is what our future is all about.
Do you have any advice or contacts who can help me out?
Without a doubt! Mr Davis has been my financial advisor ever since I lost my job. He has an exceptional skill for analyzing market movements and spotting profitable opportunities. Him strategies are meticulously crafted based on thorough research and years of practical experience.
How can IT dept consider total turnover as total income...what kind of accounting is that....
I seriously doubt when govt say india has become 4 trillion economy...it might be 4 trillion debt...
😂
Is there any backdate limit for IT dept..ya 100 saal purana case bhi nikaal ke la sakti hai??? Were they sleeping for 10 years.
7 years is the limit. But I guess first mail would have gone to the farmer within 7 years. But he didn't check.
@@bireshmishra2029 This is valuable info. thanks
I think 3 years is the limit according to new law. I am not sure though.
From 2024, limit is
I) 5 years if undisclosed/untaxed income is above 50 L
II) 3 years if undisclosed/untaxed income is below 50 L
@ Thanks for clarifying.
That's why we always advise our clients to file their ITR.
Can we file it after 2 -3 years of incurring loss which we missed in our previous filing ?
Do general(individual) traders who don’t do F&O also have to file ITR and if yes at what level of income
@@Gamer_Onnn With a fine, yes you can.
@maxray1796 how much would be the fine ?
@@Gamer_Onnn 1000 per year
And They say they have implemented AI 😂 what is the use of system and technology if you cannot distinguish between loss and income. Majority of people in the country doesn't understand the Tax IT department should be more understanding in dealing and if ever need to apply penalty make it reasonable
There are thousands of people who made losses in F&O and didn't report it in ITR as it was loss. Now, everything is digital transactions. There is definite proof of loss. Why further money to be given?
No need to give but he should have appeared before them but he did not
*“Patriotism is the last refuge of a scoundrel"*
- _Samuel Johnson_
File a writ before High Court to waive off the deposit to file an appeal before Income Tax Commission. If there are genuine grounds you can directly move before the High Court to quash the Income Tax Notice.
A farmer who shows 26lakhs as losses in F&O. He does not have access to email. He is a small farmer. 68crs in transactions. A broker friend using his account. None of these are adding up. You guys should improve your narrative skills.
Dude someone might have approached him and traded on in his account. Also in F&O if you put 10k the share have is like 1 lakh or something so for one one 10K transaction the total turnover is 2L with loss or profit. What the IT department is doing is they are considering the total share value both buy and sell as an income. I don’t even get how can they be so illogical.
Once you see pr sundar video on the same topic u will get clear idea
@sankethgowda5522 exactly, they're considering the whole contract's value which is so out of the question. It's messed up.
Also there shouldn't be any taxes, considering he booked the loss and he doesn't actually take anything out of the Indian economy but gives back in terms of loss. Like so illogical.
Then, about ITR, they can warn the people who participate in financial markets, but they can't just tax stupidly even if he didn't file ITR. Make it mandatory for brokers to teach one about ITR and such when one opens a trading account. Only tax on profit should be there, and that is according to the tax slabs of India based on business income.
@@sankethgowda5522how do they calculate real value of money considered for taxation for nifty options ?
These types of unwanted financial harassment from IT department must be stop. They can track traders turnover but can't track their actual PnL, is it believable?
This Government is Thirsty to Squeeze
every Last Penny Out of Common man. 😊
Common man of 26 lakh loss. 😂😂😂😂
Thanks to current government of taking strict action against tax chor.
This is why Filing ITR is important. I trade F&O and i file ITR whether i make profit or incur losses. In fact, if someone incurs losses in F&O in one year and makes profit on the next, then the losses can be carried forward to save taxes on the 2nd year's income. But to do that, ITR needs to be filed. That's why everyone should file ITR whether it's a profit or a loss.
This is a farmer and probably doesn't know that ITR has to be filed.
How to do for f n o trades? I started just around 2 years back
@joshferns7114 f&o P&L is considered to be Business profits or loss. File it accordingly. You shud really take help of a professional I.e. CA
@DustOnCloud9 ok. Thanks
The real enemy is not other religion its the one who says that religion is in danger vote for me
❤😂
Underrated comment. Indian middle class is getting its life squeezed out by our corrupt administration. Unless there is administrative reforms, this country is heading towards chaos.
Bribe 10-15Lakhs to IT officers. See the Magic
😂❤❤❤
This is a Country where taking a breather is none less than a struggle with laggard infrastructure and curropt system. But still we talk about The GROWING GDP.
Isn’t the it dept know that he made of loss of 26 lakhs ?. Why not. When the profit is made , u send us notice to pay the tax . When a loss is made , we have to inform the It dept that a loss is made even through they already know that . If we don’t then the transaction value will be calculated as profit and we have to pay tax . What logic is this ?
Brainless IT Dept... Law is strange why this 20% payment for appeal? .. Needs to be repealed immediately. Tax dept totally out of touch with reality...
Whole for the people by the people system is brainless..what can be expected from colonial inspired democracy. 😂
even i lost 8 lakhs in trading in 2017-18, but i didnt know that i had to file taxes, i started filing taxes since 2020-21, should i be worried
Sirji unka alag chakkar hai,broker friend ne unki account use kiya hai aur 69 crore ki transaction kiya jisme 26 lakh ki loss bhi hai
What nonsense. How can they treated total turnover as income. This officer should be suspended. They can destroy someone life for nothing. This country is the hand of incompetent officer. Who only want to appease their bosses. Shameless system.
Most of madrsachap
How can some one who is doing such big trades is a farmer . why dont you call him a trader .
The tax department knew what happened! Still they did this. Is pure evil! They think hard earned money is piece of paper? They could have dismissed the case when came to knowledge but they did this. And they keep Doing it.
Email is not the only source of communication, didn't they have contact details from PAN. Are IT dept waiting for citizens to pay pananlties
Who knows Rajesh is telling truth or lie? Dont assume anything on hearing story only of one side
@@TheNikunjAgarwaleven if its a lie or not
A farmer in india has to pay that amount of tax/penalty... Any logical justification?
What's your commen sense is saying? ... Isn't this loot?
@@LX_B bhai farmer hai to law of land follow nahi karega kya….whenever any one do huge transactions in fno trading , he has to make his account audited by CA and has to file audited return otherwise how can income department access his income ..now after making this mistake, he didn’t even reply to the notice given to him by IT Department. Thus this is a clear cut caee of income tax court case
@@TheNikunjAgarwal 69 crore yes?
You should work in that looting department as well 👍
Bhai i was there thats why i know this is right action. If they will allow one man to rule break and let him go unnoticed than you cant even imagine that what will be the consequences of that on the whole taxation system
Wrong tax calculation based on turn over . one can easily get 10 cr turnover daily in FNO trading easily (Assuming 10L investment ,Zero brokerage,) Multiple trading i.e 10 trades per day and lose the small money . I tried FNO trading for one year ,lost money one Lakh capital,Lost the profits and my turnover average is 2Lakhs per day,I quit trading. Now Going to another job. I never filed ITR , in Future , New filing will i also receive same kind of taxation based on my past history? . If Tax is for only Profits not on losses then i am not going to get Tax 😀
You might recieve 500 cr tax notice in future. That's how the system works.
Indian system is full of bewkoof people. They send notice to any one. They don’t understand basic thing like turnover can go much higher if anyone trade multiple time in day. You don’t need huge amount
Whether you make profits or loss in F&O is immaterial,just disclose it by filing Income tax returns.
@@MayurrWagh Private sector --Garments company Quality checker(can get good salary with experience)---Also studying for exams..I have BE degree . need to apply in IT
Now what is the difference between British rule and Indian Democratic rule. people shouldn't leave the country for that politicians who thinks people can be cheated should the ones to leave.
With all AI and digital technology, cant believe sale and purchase will be clubbed as income.
Not even a one govt department exist who isn't corrupt.
I have done my e-filing under ITR 1 for FY 24-25 and is processed long back.But I have an F&O loss of around 5 lakhs.Not aware about the need to show F&O losess until i come across this video.What should i do know.Can someone please suggest me what should i do now.
tax department should jail for this kind of mistake
Not knowing the law does not mean can get away from it.
Hire a chartered accountant to resolve the issue.
F&O is like betting. Gets addicted until you loose everything.
For that 1st he has pay 20% that means 13 crores as deposit to court
Shameless Indian tax systems.
It's like laws are designed in a way these bureaucrats don't actually have to use even a calculator or do any due diligence.
Naah, filing ITR is understandable, but such calculations are atrocious
He collaborated with an Unknown Broker. The broker made cr. Through his accounts & Pan But gave a small pie to him.
The point is he never filed ITR despite having huge corpse of wealth. If he filed ITR regularly then he would never faced such day.
This is crazy!!! Even the CA's say that if you're in loss you don't have to show the P&L in the Taxes. Is this a new rule to show trading F&O Losses as part of ITR? What about all those years people have not shown in their ITRs?
Who is that idiotic CA?..Trading in F&O is considered as business,Trading in cash market is considered speculation..so in business you have to disclose losses too while filing,you can't avoid it..
@@MadhavaSrivatsa Benefits of showing loss is you can set Off against current year income and carry forward next year subject to other limitations.
wow even on loss they consider as income what a joke of tax department, they didn't think to relief him. this country no longer for middle class or lower class
I am also doing F&O but overall I am in loss and my annual income does not comes under taxation(less than 2.5 lakhs).
Do I have to file ITR or I have to face any problem like this.
Please reply.
Advice to report loss and carry forward loss to next year subject to other conditions
@FOTaxationIndia thank you❤
Where he will show the loss when he isn't eligible to fill the itr @@FOTaxationIndia
I have had loss in intraday fno, stocks etc in 2020 to 2023. Never shown this in ITreturn s. Now not filing returns as I have no income. Am I in trouble ? Pls help@@FOTaxationIndia
This time 75 lot size
The farmer was doing FnO trades online but had no access to email? And why was he ignoring the notice. Firstly people arent financially literate, then blame government.
As a farmer, he is not accustomed to pay taxes..
He can do trading online but doesn't access his emails? Looks like he tried to dodge the taxes and took IT dept litely
The issue is not about F&O but the draconian law that to fight the case in court one has to pay 20% of the reported tax upfront. Nowhere in the world such law exists. That's the point.
That's messed up
At the same time the Government has waived off lakhs crores of debt of big businesses! Wow!
Man … I was feeling the same that I could avoid filing tax due to loss last year… timely news for me to upload my tax be it late
Why Millionaire are Billionaires leaving India in Lakhs every year? Absolutely the right answer.
File writ petition before high court get the order quashed.
its better to stop striving for earning money for better life here in INdia
people who don`t do much work or enjoy gets govt subsidies and are tension free
what is the need for us to strive and then get hit by all the hurdles if we try to live independently with self respect ?
It's bjp's failure and corruption that is exposed .... Let Nirmala Sitaraman and Modi apologize to all Indians and working class citizens for unfair TAX on middle class people, Unemployment , uncontrollable poverty ratio, unrest communal politics
I have paid my tax yet two times sent notice....at Last i have to submit bill details again....now....no further notice again....how bogus system.... Get well soon tax department
But arent notices also delivered by SMS? Not excusing IT department.
I think its the broker glitch 🤔 or something else beacuse due to loss their is no chance of come such notices but if someone used his pan and earned money profit thn it could be the reason 🤔
Government portals are neither user-friendly nor fully functional, which raises concerns when the government expects citizens to strictly comply with regulations while failing to meet its own standards.
Blame Narayana Murthy for kind of it portal they built minimum common sense .. people pay taxes on profits not on losses
Thank you mogi ji 😊
When you go on trading taking leverage you can reach 10 million trading in broker app, but that's not even a capital, we trade 3-4 times even 5000 capital trading with leverage would be 2lakh, i think there is no transperancy accuracy in all the tax system
I don’t thinks it’s Rajesh’s mistake. The tax dept just doesn’t function Upto the mark it ideally should. A simple analysis of trading a/c vs Bank account for a max 20 mins to 1hr could have helped them determine if an individual was evading tax or not. With AI and technological advancements, this analysis could have saved so much effort of sending notices, freezing accounts and would have spared the individual from running around to employ additional manpower to resolve this issue that was triggered by someone’s laziness.
First thing sebi has ask brokers to block fno option for those who didn't file ITR and current fno tax system is illogical
This is a fit case to be filed with the High Pitched Assessment Committee as the additions are humungous which has caused genuine hardship to the Assessee.....We can also file a Stay Petition for the entire demand with the Assessing Officer and the PCIT and not required to pay the 20% of the tax demand. The Penalty Proceedings shall be kept in abeyance until the disposal of the appeal.
If i trade with rs.6000 everyday in intraday..do i need to file for taxes? How does this work? Could someone please help me understand
It's technical glitch by the IT, sale + purchase both can't be treat as income 😂
Indian Constitution 🤡
Indian law system 🤡
Indian education system 🤡
Still how did fines surmount to 69 crores?? How many trades did this guy make?
education like Africa , tax like Europe
Govt is revising pay commission....but Govt employess mentality and intellect remains same....
Running after a poor guy
Great india
I have made a inteaday trade with loss of 27 rupees do I need to report it as business income or I can proceed filling itr 2 and mark it under stocks income
Shame on our tax department
Our modiji is Ambani and Adani ❤
IT dept doesn't even know what is f&o. Advanced economy. 😅
Everyone should know such 'news' and get together to defend citizen's rights.
The income tax should remove the 20% Stay Sum, so that at least they can submit a plea for the error made by income tax department, so people don’t have to face consequences
Tax terrorism. A person who is unable to pay even lakhs of rupees and he can't fight without giving 20% amount which is 13 crore plus . What a failed system .
How are farmers trading for 69 crore in the first place. Definitely hiding real income under the cover of being a farmer.
He bought it for 69 crore and sold for 69.26 crore. where he lost 26 crore
Let me explain. The way IT Department calculates turnover it's different.
Moreover this trading stuff happened 10 years ago. So in addition to tax liabilities, IT attached interest rate. Surcharge, fees and what not.
This resulted in a huge tax demand.
(If you want total calculation, I am ready to share it)
For 69 crore turnover you don’t need 69 crore in bank account. Earlier there was huge margin facility in 2014 for option trading with cover order. Even with 10 lakh rupee you can do 69 crore turnover. With 10 lakh you get 1 crore trading value , 10 times margin, and same day you can do buy sell again n again . Your turnover easily will cross 69 crore . Calculations are very misleading in trading
@@gruty728It’s not believable that 10 lakh trades can lead to 69 crore turnover a year.
Maybe atleast 1 crore is needed for 69 crore turnover.
Specially when he made loss and no profit.
@@johnlogan4303 instead of turnover income tax department should focus on loss made by him . Why ? Because you can lose as much you have even if broker provides you leverage. Broker will not take loss on client behalf . No where it is mentioned how much he lost. Turnover is misleading because it consider buy and sell both , including leverage . You can do 100 times buy sell in day , easily you will cross 100 CR . You will have money to do 100 time transaction because you may profit in 1 trade and loss in 2nd again profit in 3rd and so on
Simple dont earn , eat govt ration and live. Live in bubble.Be slave Dont use brain . Or Vote new candidates not regular parties or you nominate yourself for sarpanch atleast.
Day by day india tax system increaseing complexity for lay may only. After geeting more and more tax what is the development of india. Please don't put a lay man such a clumsy situation.