6 Tips & Tricks To SAVE TAXES On F&O Income!

[@rkssingla]

Very useful video Sir, cleared many doubts about F&O. Sir, according to you 1)there is no need of audit to carry forward your loss with in prescribed limit 2) presumptive tax regimen. But many CA are not accepting this. Sir can you add references also for validation of your points. It's better if Tax buddy people add reference/link/ page or section no of any standard IT book/rule.

[@architgemini9411]

Yes exactly. PR Sundar Sir, if turnover is less than 5 crores, profit < 6% and total income > basic exemption limit(2.5lacs), then audit is necessary. You said no audited needed, but i can't find any link, please provide source material and clarify

[@arifshaikh5948]

Mr Sunder i spoke to the ppl at Tax Buddy. They say that Presumtive Taxation is not applicable in case ofF&O. Could you plz clarify.

[@Me-nk5ic]

@@arifshaikh5948 Are you an option seller?

[@Jack-xx3qg]

too many misconception around presumptive taxation. The only reason I did not look into it further or avoided it was because I have to opt for it for 5 years and I do not have steady income

[@chanduvn5289]

I am not a F&O trader, but this video is very knowledgeable, worth watching and sharing 🙏🙏

[@mohaamadshimnaas]

Thank you for this informative video. Sir kindly throw some light on trading F&O in an individual name vs private limited company. What is the threshold of Profit where and if trading with company account is feasible and benficial. Thank you once again for standing tall as a guide and inspiration for us all. Warm regards, Mohamed Shimnas.

[@vishal12681]

This is very useful information. Have been looking for this info for quite sometime. No one on the internet has answered whether standard deduction of 2.5L and investments under 80c can be deducted from F&O income or not. Thanks a ton for this info.

[@KishoreKumar2301]

Please give more clarity on presumptive taxation scheme as be 1) How is turnover calculation different for futures versus options with few illustrations? 2) How to switch between normal tax & presumptive tax due to loss making years? What are the conditions/consequences? 3) links to reference articles from Taxbuddy

[@bsrao5856]

Sir, I would be glad, if you clarify the following doubts. 1) As a pensioner and a trader of F&O, Should I submit ITR3 or anything else? 2) Will you please explain about presumptive taxation scheme in a detailed way?

[@roooo5643]

Thanks sir for very useful information. One question sir in last video on 4 September you lot limit for Audit is 10Cr, this video 2Cr. Which one to follow. Thanks

[@painter1050]

timely one.. really clarified one doubt i had- well explained - thanks a lot DOUBT i had was: if a buy 1 nifty @ 100 * 50 lot size = 5000 then sell same at say 120 x 50 = 6000 ie earn profit (6000-5000) rs 1000. so transcation value as per my thinking was 5000+6000= 11000/ but here u say it would be only rs 1000. is that correct! if so thats great relief as to get a 2 crores transcation value one really would have trade very big .. but i would appreciate some reconfirmations & remarks on above points by gentlement having knowledge on the topic thanks..

[@nareshshanbhag]

Fantastic step to help your followers. Sir for salaried person how can we take advantage in tax savings of agricultural land inherited by us.

[@gsmallesh]

Research Sir, thanks for the excellent video. Please elaborate on what documents we need to preserve and present to auditor for the tax purposes and where and how to get them. Our auditor ask for the contract notes for each transaction and SIP and its a huge task. Kindly let us know 🙏

[@jeyachandranc1813]

sir...your experience , passion towards teaching makes this presentation a wonderful informative session

[@rajnihora]

A quick calrification needed. Why different turnover calculation for presumptive income and actual income?

[@khemar-jl1tb]

Excellent sir. very crisp & clean.

[@nageshshiva]

Cleared all doubts. Thankyou so much sir

[@dgnaik69]

Thank you for the content. Incidental expenses can be claimed even by individual trader? Is it advisable to go for a partnership firm beyond a particular threshold of profit? This will be very useful input. .Thank you again

[@TheKssunil]

100% worthy video, keep up the good work.

[@RameshPatel-wo6ls]

Thank you for sharing this useful information. What is the business head for filing ITR3

[@harshadmehta427]

Sir can you make a video on things to keep in mind before starting a corporate account or at least give guidance on whom to consult?

[@tubevenkat]

Thanks for the information. Please also let us know pros and cons especially with regards to tax if one trades in company account or individual account?

[@rajashekhar9310]

This is very useful information .thank you sir

[@s.triyambakpatro7341]

Again on point 4 there is an issue. OMG dont know wha more should i say😂😂😂.. do consult ur CA Mr. sundar. If he doesnt clarify, consult me.

[@vikramksn]

Hello Sir This Video is Very informative I request this type of video should be in Playlist separately like In the name of Taxation for Traders Thanking you Very much......

[@SupratimBhowmick]

Irrespective of whether you are making profit or loss auditing is not mandatory as long as turnover is within limits. But if you want to carry over the loss to subsequent years auditing is must even if your turnover is within the prescribed limit. Only those who have incurred F&O loss, had turnover within the limits and filed IT return last year will know I am correct. It is also very written in the ITR instruction file.

[@vijoykumar5379]

You are absolutely correct . I am surprised, he is a chartered accountant and yet given an incorrect information

[@venkateswararaopitchuka8678]

Excellent explanation Sir. I have question sir. If I buy options of the next financial year with the entire profit earned in options only in the month february of current year. What should I do then. How to show it sir

[@LalitKumar-no4kx]

Sir you make valuable videos, thanks for this,but plz clear what is presumptive tax,and 6%tax on total turnover

[@prashanth_shanmugam]

Hello Sir, for individual F&O trader, if turnover is more than 2Cr, what documents should be maintained under books of accounts?

[@kishorereddy3888]

Hi Prashant, You should keep all your expenses bills/vouchers, record of any cash payments m.etc. Anyway all your trading happens over broker so everything will be available by a click.

[@adithyaabbayikoppada9450]

Valuable information, thank you very much

[@rajavadivel5024]

Great video. One small mistake in the example (presumptive income).. You have taken 18 laks as the turnover (10 L profit and 8 lakh loss). The actual turnover to incur these profits n losses should be considered.

[@painter1050]

yes.. this is the point i wanted to clarify - DOUBT i had was: if a buy 1 nifty @ 100 * 50 lot size = 5000 then sell same at say 120 x 50 = 6000 ie earn profit (6000-5000) rs 1000. so transcation value as per my thinking was 5000+6000= 11000/ but here Mr sundar says it would be only rs 1000. is that correct???

[@kvsbabu2124]

Taxation is on profit and loss turnover amount and not on capital amount.

[@rajavadivel6988]

@@painter1050 For option turnover = SALE PRICE + absolute profit (i.e. profit or loss). In your example, TURNOVER = SALE PRICE (6000) + PROFIT OR LOSS (PROFIT IN YOUR CASE IS 1000) = 7000 IS THE TURNOVER. For futures turnover, ONLY absolute profit or loss is taken as turnover. For example, Indusind Bank Buy Price = 1000 (1 lot) x Rs.900 (current price) = 9 Lakh. Sale price = 1000 (1 lot) x Rs.890 = 8.90 Lakh. Now the difference of Rs.10000 is considered as Turnover. Hope I have clarified.

[@painter1050]

@@rajavadivel6988 got it- thanks for clarifying. but if they are really going for the differential amount as transcation value. which is great - i really dont underst the concept of adding the sale of option price to P/L amount - it seems messed up . thats like adding one part of the actual transcation value + P/L to it - do u know what could be the logic

[@rajavadivel6988]

@@painter1050 Pl dont see the logic. So many people enjoyed long term capital gains (profit after 1 year). Now upto 1 lakh only is exempted. Why various taxes are levied even before earning profit. Stock Market is a dangerous game. U have to be smart, intelligent, calculative, robotic, etc. Now also you see, there is a every chance of getting at least 30% profit (for one year) if you invest in various quality nifty 50 top equities but who will do. Now most of the people will do F&O (whether they know or not), selling equities in panic, intraday trading and end up in loss. Patience and smartness are two keys for stock market.

[@muruganandamk4862]

Thalaiva you are great.presumptive tax very interesting I didn't know before very useful for me .thanks for sharing

[@Godsvoice351]

Very informative, keep it up, gudluck!

[@athuljosmathews7970]

Sir,very useful vedio.i think option premium also need to be added for computation of turnover for option trading

[@chandruti2058]

superb sir, learning many things from u , thanks and have a gread weekend.

[@arunidiculla5622]

Thanks Sundar for sharing these valuable information .

[@drtripurahpe8412]

Thank You sir, But when to to pay advance tax , and how I know about that.

[@skumarpammi1473]

It is always confusing how to fill the ITR form using F&O, STCG & LTCG. Please arrange sample session which will walk us through entire filing process.

[@e2origamikala469]

Very very important & helpful. Thanks alot Sir.

[@yoghan777]

1. If I make loss, then is presumptive tax applicable?. In this case any tax to be paid.? 2. If in net loss, can I also claim expenses to arrive at net loss.?

[@vinay8196]

Salute to your timing sir, you know retail trader earn a lot of money in this crash

[@KK-dx6pe]

Very useful and explained in a well chronological manner ! thanks a lot !

[@koshyaa15]

Wonderful Sir..all my queries answered

[@nmanickam2993]

Very good.Nicely explained thanks

[@arulranganathan6938]

Great informative video sir. You are helping many with this video

[@awesome_mihir]

Thankyou for this, Sir. 👍

[@ramanathansubramanian2487]

Superb Sir. Very thoughtful informations, which is the need of the hour. We have no words to thank you, you are simply great.

[@ravinderkumardhamija221]

Please guide about calculation of TURNOVER in Option trades

[@chakradharmallula4728]

Very important topic. Thank you Sir 🙏

[@gangarchintan1984]

Let me know about corporate Demat account, how to make company to trade in FnO and what will be tax calculation ?...

[@arulk9373]

Thanks for the video. very useful Taxation information

[@PrashantSingh-kt8wn]

PR sundar jee ka knowledge jabardast hai

[@pravat165]

Great Learning for Free I can’t believe

[@ragskrish]

Dear Sundar, am Raghuram frm Mumbai n a avid fan but f urs for yrs. Thanks for d video. Could u pls also cover details for FNO traders like me, who work from home. What would be d exceptions i would have n other benefits. Thanks in advance. U r rocking n keep rocking.... Unga vazhi thani vazhi 🧄

[@ankur0587]

Thanks for this informative video sir. Short and crisp with deep insights.

[@uttamgupta7969]

thanks sir for such informative session...i wanted to know that how can we save taxes if we earn a profit of 1-2 crores as it is a big amount and taxes are anywhere near 30% ..kindly make a video on tax savings if you earn in crores

[@ashwinsnmv]

Are you earning in crores? If yes I don't think you need to ask Mr.Sundar

[@deborshiganguli3105]

Very useful video sir.. If f&O trade can be treated as a business and if I file tax based on f&O trade alone, I am eligible for home loan or pl in future or else I need to merge my f&O trade income with other business income to avail loan facility from banks. In short whether f&O trade as business is widely accepted in comparison with other mainstream business category. If so WHETHER it will come under business or self employed category in individual level. Thank you🙏

[@The123abcool]

Sir, i think turnover limit is increased to 5 crore from FY20-21 onwards. Thus under presumptive taxation, no audit & books of account required if turnover is upto 5 crore & profit in minimum 6%.. kindly confirm

[@gurmohanrandhawa3993]

Thanks for this information

[@anjugupta7736]

Sir, as you have shown, if there is profit of Rs 4 Lakh and loss of Rs.6 Lakh, then turnover of F&O is Rs. 10 Lakh. Whether Turnover is total sales of F&O during the year or total of Profit and Loss. There is a column of business turnover in ITR form. What should be shown in that column. Please tell.

[@kkm316]

Good video. Many thanks. Sir bring a video for itr3 filing for f&o trader.

[@aashaysg7478]

Explain new tax regime and old tax regime in detail and which one should we choose?

[@harikrishnan9908]

Sir please make a video to taxation of salaried people who are doing cash market trading at share market

[@mlnvsprasad3695]

Very informative video Mr Sunder Sir. Thank you very much.

[@rakeshkumar-qh1tc]

Sir that's ok my for show expences we need to keep corporate accout ??

[@mohitparmar2141]

Thank you very much for this information... I am new to trading and making very good and consistent profit in option selling and future.. From long time I was looking for these informations. Thank you very much for these useful information.

[@umamaheswar4367]

Thank you sir for good video. I have a question regarding turnover. You have mentioned turnover as profit or loss for each trade. Some CAs told me that actual capital used for buy or sell considered as turnover. not sure which is correct. can yu confirm?.

[@ashwinsnmv]

Turnover in F&O is always sum of profit and loss

[@thriftytrader3876]

For Futures:- Turnover = Profit + Absolute value of Loss For Options:- Turnover = Profit + Absolute value of Loss + Total Premium Received (Total Sales Value)

[@thriftytrader3876]

Examples:- Nifty Futures>> Trade 1: Bought 1 Lot at 17000, Sold at 17100 Profit = 50 x (17100 - 17000) = Rs.5000 (A) Trade 2: Bought 1 Lot at 17500, Sold at 17450 Loss = 50 x (17450 - 17500) = Rs.2500 (B) Turnover = (A) + (B) = 5000 + 2500 = Rs.7500 Nifty Options>> Trade 1: Bought 1 Lot CE at Rs.100, Sold at Rs.150 Profit = 50 x (150 - 100) = Rs.2500 (A) Sell Value (Premium Received) = 50 x 150 = Rs.7500 (B) Trade 2: Bought 1 Lot PE at Rs.300, Sold at Rs.180 Loss = 50 x (180 - 300) = Rs.6000 (C) Sell Value (Premium Received) = 50 x 180 = Rs.9000 (B) Turnover = (A) + (B) + (C) + (D) = 2500 + 7500 + 6000 + 9000 = Rs.25000

[@plusorminus6517]

3.5 I think it is loss carryforward not offsetting I think offsetting means adjust on one to other in same fy

[@sachinshinde497]

Sir, 1) Presumptive tax is applicable to individual or even a Pvt Ltd/Partner/proprietary/HUF firm can take benefit of it. 2) Which company formation is best for FnO trading business.

[@devendradevidasani7598]

Sir, Is there a video by you explaining how to maintain books of accounts for Equity and Futures and options trading. Kindly reply.

[@funnyvi4859]

thanks sir very nice video keep it up and keep growing ....

[@sathishsubramaniam4646]

is Presumptive tax changeable year after year? or is it fixed like old vs new regime?

[@kumarcg6581]

As long as your Turnover is below 2 crores yiou can use presumptive. if in some year if it exceeds 2 crore you will have do the regular

[@72binu]

Wonderful information and well presented

[@manmohanmahapatra6040]

Loss is also added in turnover and tax is filed? How does that work? This video tells differently at 2:26

[@munrana]

Very useful video Sir! 🙏

[@JayachandranVS]

Sir, Great information. Thank you. As an 'Individual', can I show my F&O income as business income? Can I claim deduction on the expenses for internet and other infrastructure used for F&O trading, being in the category as 'Individual'??

[@FinanceAnna]

Very informative sir thank you 🙏

[@TEJASWE1]

Sir what time are we supposed to subscribe for tax buddy services for income tax filing for the calendar year is it at the beginning of the calendar year or at the end of the year at the time of filing IT returns?

[@bvs.ravikumar235]

Thank you so much for sharing very useful information. Please let me know which tax returns to be choosen by F&O trader (ITR-1 or 2 or 3). Please suggest.

[@ashwinsnmv]

If you are salaried person also then 3 else 2

[@krishnajagadeesh6307]

Please make one vedieo the same like current financial Year tax details sir thank you

[@pradipmishra3887]

Excellent Sir😊

[@MaruthiPanyam]

Hi Sir Thank you for the informative video for Resident Indians. Can you please provide a video for NRI customers, how to save tax on F&O earnings

[@unnisreejith2763]

Thanks for such a precise explanation. could you please help with the below queries too 1. How to compute income tax for a pensioner with F&O trades. 2. In case of a salaried person with F&O trades, if we had switched to new tax regime this year but stopped F&O trades, can we switch back to old tax regime the next year.

[@tvenkataramanarao5526]

Very useful information thank you sir

[@randomshotsindia]

Excellent Explanation

[@vijaymohite5055]

QUESTION : I have a retail business of equipment.(I file itr IV) also i do FnO trading. sould i file itr 3 along with itr 4. where can the profit or loss (frpm fno trading be shown in itr IV. second question. if in trading it is net loss, can deduction still be added to it.

[@Praveen-uc9re]

1. You should File ITR 3 there u can mention business income as well as Trading income. No need to file ITR 4 separatly also it not possible. 2. If trading loss is in equity then it is speculative income. So u can setoff loss only against specualtive income. If it is F&O loss then u can setoff losses anyother income other than salary. Also it will be carried forward it to next 8years.

[@nattamsaikarthik7661]

Sir, you told there is no need to go for audit if turnover is 2 cr or less though it's a loss, but Taxbuddy people are asking it's mandatory to do audit if you have loss and they say reason is because you did audit last year... Please help here...

[@brainpills5709]

sir could you please make out a video on how to file income tax , this would help many newbies in the market

[@yeswantmanivannan4220]

Sir thank you pls advise how depreciation will be charged for laptop/mobile/ tablets..

[@Honest5]

Thank you for your very useful guidance on income tax filing for f&o. This information not only useful to traders but also to many auditors. Even some experienced auditors lacking in this knowledge on tax filing of f & o. Now every one got cleared from their confusion from your excellent service through this video. Thank you sir! 💐

[@baldwinbaretto2093]

On payment of advance tax : Q1 ) suppose the turn over is less than 2 crores, Do you still have to pay advance tax? Q2) Is there any tax free period for a new investor in the market - I read it on google that there is a tax free period for new businesses. Is that applicable for investors/Traders in the stock markets too?

[@TaxBuddy]

Hi Baldwin, If turnover is less than ₹ 2 cr, and you are availing presumptive taxation scheme, then you can pay advance tax in one instalment in month of March. You need not pay quarterly advance tax in such cases.

[@TaxBuddy]

2) no any tax free period is availed for investors/ traders

[@vigneshm7481]

Very useful video sir, highly informative.

[@architgemini9411]

PR Sundar Sir, if turnover is less than 5 crores, profit < 6% and total income > basic exemption limit(2.5lacs), then audit is necessary. You said no audited needed, but i can't find any link, please provide source material and clarify. Please take up this question when taxbuddy CEO shows up !

[@manishmaniak]

SIR I HAVE QUESTIONS 1.Can I claim brokerage expenses 2. Audit of books on basis of turnover or Profit ? 3 Car Purchase can be take as depreciation

[@koushiknaidu2047]

please add for cash segment with intraday. sir. add in play list with tax saving

[@shaileshpatel-cn2qj]

thankyou so much for you infomative guidance. sir you got tremendous knowledge with humble attitude. regards Jerome

[@BramhamBramham]

Thank you for your valuable information on taxes sir I have a query , if I am a salaried person and doing f&o , should I use itr form 1 or 3

[@vinodhkumarVoleti]

Question: Hi Sir.. as you said brokerage charges, office electricity, rent and mobile bills would be for every month of every year. here my doubt is when I'm going to file ITR shall include my expenses of laptop purchase and mobile purchase for every year. Question: Hi Sir.. I will file ITR even I got loss.. that's fine but my query is if I add expenses about office bills in ITR even I got loss, can I setoff all expenses and losses of this year in next year.

[@rajeshkannanrrk]

Where can we get profit loss statement in a particular year?

[@kumarcg6581]

Your broker's website will have an option to get this statement for even the past FY

[@10129933286568]

Thanks a lot Sir..extremely fruitful...content...

[@prasadrao4]

thanks for sharing a video of great value.

[@srinivasaraodora.v.v405]

Thank you so much, very useful vedio

[@babulupmg123]

🎉Excellent Sir❤