Future & Options and Income Tax Provisions | CA. Anoop Bhatia

[@shashankdhamaniya5834]

This is really helpful Sir. I have been your student in the year 2013-14. Just found this video today while searching for tax implications on options trading. Amazed to hear you again. As always it was very informative with such clarity. You always make it sound nice and easy. Reminded me of my classroom sessions.

[@CAAnoopBhatia]

Thanks Shashank, glad that you found it helpful.

[@kalakayyarevanaki9011]

Thanks for valuable information

[@thumbiashok]

Anoop sir, what voice ...crystal clear....No mix and match...point blank clarity...Very good sir

[@CAAnoopBhatia]

Thanks for kind appreciation.

[@KunalKourani]

Thank you. What is the meaning of "Where a reverse trade is entered then difference thereon should also form part of turnover?" This is for option turnover calculations.

[@ranjanbehera-d3j]

Anoop Ji, sirf yehi dua mangunga aap ke liye. Bhagwaan aapko 100000000000000 shaal ki zindegi dein aur aap aise hi knowledge share karterahehain. we all love you Anoop Ji. aapke awaaz mein sachai hai aur aap jo rule hai wohi bolrahehain. God bless you.

[@CAAnoopBhatia]

Dhanyavaar Sir. Aapka pyar avm aashrivad aise hi banaye rakeh.

[@pranavtated8548]

This is the most simplified version of Tax laws on F&O ever on KZbin

[@CAAnoopBhatia]

Thanks Pranav :)

[@srikishanpallod8129]

Very nice channel, he sounds calm and good. Thanks for information

[@CAAnoopBhatia]

Welcome!

[@connectwithmohit]

You are always a blessing to us and really a valuable asset for the profession. Regards

[@CAAnoopBhatia]

Thanks Mohit bhai for your appreciation. Wishing you all the best :)

[@rahul28agarwal]

Hello Sir, My F&O turnover is above 10 Crore trade wise & I have a loss of Rs. 1.25 crore. Please guide how should I prepare P&L account in audit ? ( As my expenses are of Rs. 50 Lakh Only)

[@connectwithmohit]

@@rahul28agarwal please contact either to Res. Bhatia Sahab, or email me the issue on [e-mail]

[@saketmusic]

Bohot Badhiya Bhatia ji... maan gaye, itna clear cut samjhaya aapne. mera kuch sawaal hain 1. Agar koi f&o individual trader loss dikha k loss carry forward krna chahta hai... to kya audit mandatory hai? 2. ek Individual kya FD interest ko Carry Forward loss se setoff kr sakta hai kya?

[@CAAnoopBhatia]

Thanks Saket ji. Showing loss does not mean that an audit is required unless turnover exceed the threshold limit. FD interest can't be set off against c/f losses.

[@kamleshkaushik4394]

@@CAAnoopBhatia but sir ye income to non speculative hai and isko to hum othe income se adjust kar sakte hai Sp fd interest se kyu nahi kar sakte..plz revert

[@bimalmohangupta9490]

Bahut shandar advice. Thanks

[@CAAnoopBhatia]

Thanks.

[@Adityakumar-sr2ex]

Thank you so much Sir... Making this video for educational purpose.... 🙏🙏🙏🙏🙏🙏🙏.... I want one Separate Video... For TRUST accounting & How was the Cycling of Trust...

[@minionssaga4100]

Easy and wonderful presentation

[@CAAnoopBhatia]

Thanks for kind appreciation.

[@amitmandal6964]

Mind blowing. As clear as day light sir. Great effort sir🙏🙏🙏🙏. Thank u very much

[@CAAnoopBhatia]

Thanks Amit ji :)

[@aartsensestudios7369]

Wonderful Explanation Thanks & Best Regards

[@CAAnoopBhatia]

You are welcome

[@nareshshrivastava1602]

Very clear and to the point

[@charatsharma9809]

Bhatia Ji, hats off to you for so clear message, you are really doing public service, May God bless u.

[@CAAnoopBhatia]

Thanks for kind appreciation.

[@aalaaala2010]

God bless you Bhatia ji..... wonderful discussion.....no timepass......thank you, sir.

[@CAAnoopBhatia]

Thanks Sir for kind appreciation.

[@mangeshchitale102]

What to write in "sales" and "purchase" in profit and loss account? As "Sales = Turnover" is what we do in common practice. But here "Turnover" is different than "sales".

[@venkataratnamjupudy5850]

It is really wonderful to listen your video with clarity. I am retired employee aged 78 year and I keenly follow taxation subjects. Now my query is why an assessee, whose business turnover on option trading is Rs 20 lakhs in the year and incurred a loss of Rs 4 lakhs and did not maintain books of accounts as per sec44 AA, as the turnover is less than qualifying turnover of Rs 25 laks, And got the ledger and p&l statement from the broker & in none of the previous years did any business and never opted for presumptive taxation of sec 44 ad any of the previous years, as it did not maintain arise as this is first year of business & Has other income from Other Sources more than taxable exemption limit say Rs 10 lakhs Is there any need for tax audit and to maintain books of accounts as specified? ,

[@CAAnoopBhatia]

Thanks Sir for kind appreciation. In my opinion in case cited by you tax audit is not applicable if there are no cash receipts / payment involved as such, however, books may only be in form of ledger statement, P&L given by broker.

[@rajeevmongia138]

Absolutely best explanation.

[@CAAnoopBhatia]

Glad you liked it

[@manishsultania456]

this video is really helpful for me sir.

[@saurabhjain7440]

Very good and useful information , and explanation is superb.

[@khanna1986]

Thanks Sir You real are Caa KZbinr

[@mathysam3254]

Sir your explanation was very clear. I would like you to do a video on options with an example, to understand the addition of premium and reverse trade in the working

[@CAAnoopBhatia]

I will try.

[@CAAbinashJaiswal]

Beautiful explanation sir 😇🙏

[@CAAnoopBhatia]

Thanks and welcome

[@sachinrv1]

All your videos are informative and very useful.

[@CAAnoopBhatia]

Glad you think so!

[@cahemantpanchal]

Thanku sir great clarity

[@anuragsrivastava9491]

Sir it is daring efforts from your side and I think first time covered by anyone. Made very clear.🙏🙏🙏

[@CAAnoopBhatia]

Thanks Bhai Saab :)

[@shilpagaikwad3426]

खुप छान explain केली आहे.thank यू सर

[@CAAnoopBhatia]

Thanks.

[@prasbhat8825]

Superb analysis! All traders need to watch this video.

[@CAAnoopBhatia]

Thanks for kind appreciation :)

[@ca.adityakothari9913]

Beautifully explained

[@CAAnoopBhatia]

Thank you so much 🙂

[@anupammukherjee4147]

Sir please make a video only upon cash receipt in tax audit section. Whether the receipts are for any instruments, employees, infrastructure etc.

[@devarasiddappadevarajaiah5813]

Thank you very much sir. Pl make a complete video on filing ITR 3 for salaried people with intraday and NFO transactions

[@CAAnoopBhatia]

Ok I will try in future.

[@giteshs999]

This is very good. One question though, what about losses? Does one needs audit if there is a loss? This is painful as unless one's turnover is high, audit is a burden.

[@CAAnoopBhatia]

In my opinion unless the turnover exceeds the threshold limit there is no need to get the tax audit done.

[@giteshs999]

@@CAAnoopBhatia Thank you Anoop. Lot of things surrounding trading income is not clearly defined by IT dept. While Filing the IT return, Do you enter data in 'Accounts not maintained' section or other section? As other sections are not actually relevant and applicable only for Manufacturing or trading.

[@casradha9546]

Under which section F&O coming Sir?

[@namanporwalauthor5103]

1. Sale in P and L will be actual sale value right? And turnover calculation done is only to check audit limit. 2. 5% cash will be taken on actual sales or turnover calculated as above? 3. Is it okay if actual sale value is greater than turnover calculated? Even if it crosses audit limit but calculated turnover doesn’t?

[@shankarollakkat1831]

Very good information. Thanks

[@CAAnoopBhatia]

Glad it was helpful!

[@caipbimalashokdesai9873]

Sir, Thanks for your video on FNO. Request to please guide as to how to pass entry in books so that we can show actual turnover and profit or loss. As we are ignoring negative sign, it is confusing.

[@CAAnoopBhatia]

Bimal bhai in my opinion there are two ways to do it eithe book each and every transaction in books or book few consolidated entries in the books for respective category wise profit or loss.

[@harshitmiddha9397]

Beautifully explained sir, sir please explain do we need to pay advance tax on f&o income?

[@CAAnoopBhatia]

Yes you need to pay advance tax on such income.

[@parbatsinghrathore8849]

Many Many thanks for paying attention to my request about share market. We would also want a video on intraday and cash segment transactions.

[@CAAnoopBhatia]

Prabhat ji I will try yet I created one video on capital gain taxation which you may refer for share market transaction.

[@grixology]

What a wonderful video Sir! Hats off

[@CAAnoopBhatia]

Glad you liked it!

[@govindaotavani]

Thank you sir Both of vedio old and new on F & O are really nicely explain by you.

[@CAAnoopBhatia]

Thanks and welcome Govinda :)

[@govindaotavani]

Sir F & O transaction related to agri comodity is normal business and prof income or speculation transaction??? If normal busi & prof but last year i considered as speculation transaction and now FY 19-20 can i taken as normal business and profession. FY 19-20 also appx 20 lacs loss Please guide me🙏

[@saurabhgolya3312]

Sir thanks a lot for making such video on my request. You have done all doubt clear regarding F&O trading and I hope it would be beneficial to all of us. And enhance knowledge of everyone. Again thanks with regards. My suggestion about point which may be added 1. Under section 44AA criteria for maintaining books and account if business income (PGBP) is > 2.5 lakh or turnover is > 25 lakh 2. Example of calculation of turnover in options trade should have been given. 3. In which conditions department treated short term capital gains as a business income . Sometimes delivery based short capital term gains are treated as business income if transactions are more and frequently done. But department doesn't give clear definition of "more and frequent transactions " its a subjective matter. Thanks to you from my heart

[@CAAnoopBhatia]

Thanks Saurabh for kind appreciation.

[@harshaverdhanwasnik4191]

So informative video Thank you

[@CAAnoopBhatia]

Glad it was helpful!

[@Atul7744]

Nice information sir. Thank you 🙏

[@CAAnoopBhatia]

Welcome

[@kameswararaoag2644]

clear explanation easily understadable which goes into the minds of the listeners

[@CAAnoopBhatia]

Thanks for kind appreciation.

[@deepakkhandelwal317]

Very informative sir ....❤

[@CAAnoopBhatia]

Thanks and welcome

[@sudarshanmotukuri9242]

You are the best Anoop ji. we love you.

[@CAAnoopBhatia]

Thanks Sudharshan :)

[@nishu123100]

complete solution of all queries in 10 mins👌

[@CAAnoopBhatia]

Thanks :)

[@rohitmanik7188]

Thanks for such information sharing in simplistic way.

[@CAAnoopBhatia]

My pleasure :)

[@kuarsahu]

For the below scenario: Taxable income from salary: 12 Lac approx. Short term profit from stocks/MF: 10k Total Turnover (Intraday, Options & Futures): 20 Lac approx. Total Loss (Intraday, Options & Futures): 2.5 Lac approx. 1) Do we need Tax Audit to carry forward current year losses? 2) How long can we carry forward the Intraday, Options & Futures 4yrs or 8yrs. 2) Which ITR do we need to fill and how many years do we need to file the same ITR? 3) Do we need to maintain Books of account? 4) If BOA required then How and how can maintain BOA?

[@CAAnoopBhatia]

Prima facie tax audit would depend upon turnover, pls refer my recent video for tax audit it will guide you more better. Further intra day losses can be c/f for 4 years and other (F&O, delivery etc) may be carried forward for 8 years. ITR 3 shuold be filed, books should be maintained. Pls consult your CA for precise reference.

[@dineshkumar-kd2hv]

Good video imparting clarity on the topic. What if F&O income is less than 6% of turnover of 50 lacs. Whether audit is required

[@CAAnoopBhatia]

In my opinion tax audit should not be required.

[@navingoyal2003]

For Option turnover, please clarify - Buy option premium is Rs. 10K and Sale option premium is 22K so profit is 12K. So Turnover is Rs. 32K(10K+22K) or 34K(2K+10K+22K) or some other way. Please guide

[@CAAnoopBhatia]

In my opinion every option contract is seperate one, thus is on buying you incurred loss of Rs. 10K then on sale you booked profit of 25K total tunover should be 35K further if you also got premium of Rs. 2K at time of sale of option then that should also form part of turnover. Rest refer the ICAI guidance note on Tax Audit.

[@navingoyal2003]

@@CAAnoopBhatia Thanks for prompt response

[@paragdhomne2602]

Very useful Sir .Thanks

[@CAAnoopBhatia]

Thanks.

[@brijeshgupta3086]

You have covered all the possibilities about treatment of f&o

[@CAAnoopBhatia]

Thanks Brijesh :)

[@BrainDevelopment]

Great info! Thank you very much!

[@CAAnoopBhatia]

Very welcome!

[@chandanasharma1996]

Sir... very good efforts done by you... Lots of thans sir.

[@CAAnoopBhatia]

My pleasure :)

[@sekumadhu6241]

Thank you 🚩🙏

[@CAAnoopBhatia]

You’re welcome 😊

[@ajitjha4807]

Sir, thanks for such a valuable information. Sir my doubt is, can we set off losses of other normal business from F&O incomes. Please suggest. Thanks a lot.

[@surajvidhate9162]

Excellent explained... Thank you sir.

[@CAAnoopBhatia]

You are welcome

[@AmitAnand03]

Very well presented. Thanks for the info Sir. Jai Hind.

[@CAAnoopBhatia]

Thanks Amit bhai. Jai Hind :)

[@vimalkumar-cn1fj]

Very useful video for retail investors, thank you very much sir.

[@CAAnoopBhatia]

You are most welcome :)

[@surendraverma1438]

You are a really good advisor god bless you

[@CAAnoopBhatia]

Thanks and welcome:)

[@dinesh249955]

1st of all thank u for such informative video...wanted to ask weather short term capital loss of last year from equity shares can be adjusted with this year's Gain from f&o..pls guide

[@charanjitchhabra3250]

Whether sale amount to be added in absolute sum under option trading

[@onemanarmy54321]

"Where a reverse trade is entered then difference thereon should also form part of turnover." इसका क्या मतलब होता है सर ? यह ऑप्शन का टर्नओवर का तीसरा पॉइंट है।

[@Wandertunes-k2k]

Very nicely explained!!

[@CAAnoopBhatia]

Glad you liked it

[@surajjakhotia]

Sir, Please guide whether depreciation & capital expenditure should be taken in column 44 of the audit report or not.

[@CAAnoopBhatia]

If you are computing business income on actual basis then depreciation may be claimed.

[@divakarannambiar5232]

Very clear opinion

[@CAAnoopBhatia]

Thanks.

[@siddhantraje]

Can't thank you enough... Helped a lot ! Thank you sir ji !🙏🏼

[@CAAnoopBhatia]

Always welcome :)

[@ganeshmane8953]

Nifty, bank nifty ka turnover future me calculate kare ya option me sir??

[@bharatkachhadia8117]

Thanks sir to provide better information for F&O transaction

[@CAAnoopBhatia]

Always welcome :)

[@rajkumargarg6242]

Good information and presentation. To the point. Keep it up.

[@CAAnoopBhatia]

Thanks for kind appreciation.

[@YeshvantWadekar]

TOO GOOD INFORMATION

[@rakeshjaiswal6245]

Sir Aapko sunkar accha lga Per mai cahta hu ki aap jitne bhi tex se related ho ya f and o se sare example ke throu samajhaye Jisse logo ko samaghna me aasani ho

[@CAAnoopBhatia]

Ok I will try.

[@mangeram6384]

नमस्कार सर 🙏🙏 सर मेरे 2019-20 के लेजर स्टेटमेंट में option turnover around 6करोड़, future turnover around 50 लाख दिखा रहा है, एवं future buy turnover around 27 लाख,future sell turnover around 26.5 लाख, option sell turnover around 110000, option buy turnover around 250000 दिखा रहा, pls बताए कि itr के लिए turnover कितना कैलकुलेट होगा ये अलग अलग turnover का क्या अर्थ है

[@CAAnoopBhatia]

Sir total turnover of all segments should be added in computing turnover for tax audit purposes.

[@mangeram6384]

@@CAAnoopBhatia thanks sir for reply 🙏🙏🙏🙏

[@omrasfilms4651]

Hi Bhatia Ji, you have very authentic voice and your detailed explanation is much appreciated !! It will be great help if you help me with my queries .Many other CA are saying that one need to go for CA audit even if his transaction is less than 1 crore and he is in overall loss, only way to avoid CA audit is to show 6% of profit and turnover less than 1 cr which is contradictory to what you have explained. In my case my turnover is 59 lakhs and overall loss of 4 lakhs , do I need to go for CA audit and what should be the Nature of business Code?

[@CAAnoopBhatia]

Thanks for kind appreciation Kabir ji. However, as per my understanding there is no need to offer minimum 6% or 8% income, you should offer actual income in your ITR.

[@vegetagoku42]

Do not go for audit, ca is fooling you, watch video of pr Sundar with tax buddy, there is your answer..

[@akton8498]

Specially, Make a video on swing trader who doesn't have any other JOB OR BUSINESS No intraday f & O but thru Equity Investing only that taking positional trade < 7 months making 8-10 lakhs unrealized profit ... For Example kanchi karaporam bought at 400 it is at 3x+ now... CMP 1300 + , How one shld calculate Tax if profit is booked. Kindly, make videos with specific examples...

[@RKBehl]

Very impressive video. I really liked it.

[@CAAnoopBhatia]

Thank you very much Sir for kind appreciation :)

[@gurpreetsingh8978]

nice information sir,thanks sir...jai hind ji

[@CAAnoopBhatia]

Jai Hind Sir. Thanks.

[@ashokkumargupta8509]

Excellent Sir 👌👍

[@CAAnoopBhatia]

Thanks.

[@g.m.shivaprakasha9730]

sir,,Thanks for your detailed information about F & O transactions, this information is clear all my doubts

[@CAAnoopBhatia]

You are most welcome :)

[@vkgmusic6657]

Very good information...sir...🙏🙏🙏

[@CAAnoopBhatia]

Thanks and welcome

[@himanshujovi]

A very simple and helpful video. Will it be wrong to say that all things being equal , Futures trading is going to be less bothersome compared to Options as the turnover for FUTURES is less than futures for Options ?

[@CAAnoopBhatia]

Thanks. The conclusion drawn by you may be right depending upon facts of a case.

[@shikhaagrawal1743]

Thanks Sir, the video is very informative.

[@CAAnoopBhatia]

Welcome Sir.

[@mahendrashinde9753]

very superb and nice speech

[@CAAnoopBhatia]

Thanks :)

[@NaveenKumar-dg2pg]

Thanks .. any benefit in Tax exemption if show & claim Personal Loan ?

[@CAAnoopBhatia]

personal loan related interest is usually not deductible

[@samridhikothari7492]

Amazing content Sir ji👍 Thank you for sharing.

[@CAAnoopBhatia]

Thanks Samridhi.

[@netaichakravarty5553]

Thank you very much Sir for this helpful video . Stay blessed and happy 🙏

[@CAAnoopBhatia]

Most welcome Netai. Thanks for your blessings.

[@tushargoyal556]

sir pgbp income h to assets pr depreciation, and rent bhi claim kr skte h?

[@caamolbramhankar7755]

Premium received on sale of options mean only when options short

[@kusumprajapati7760]

Sir ur video was very helpful. But 2 queries: 1) In case of Options the premium which is recvd on sale of options is also included in calculation of Turnover unlike Futures? 2) If I don't go with 44AD and declare profit less than 6 % then will there be no query from IT Deptt? Plz reply

[@CAAnoopBhatia]

Kusum you are right that premium received on sale of option should be included in turnover. Further as I clrearly mentioned in the video even that F&O trade is not 44AD business so IT deptt. should not object, even if they do so we can reply that relevant transactions were F&O.

[@kusumprajapati7760]

@@CAAnoopBhatia that means if a person bought a Option contract @rs.100 & sold it at rs. 125 then his Turnover is rs. 25+125=150?

[@crystalcool5121]

Please share e mail I'd and contact number

[@vikv4884]

If a future contract is sold on the 3rd day from the date of buying, and for 2 days if it is appearing as loss. while computing turnover, do we need to calculate 2 days loss also or only profit on the date of sale.pls advise

[@sunilmakhija5819]

"may not" or "is not" compulsory?

[@deepakbhansali8938]

Sir, Can F&O profit be set off against losses of Short term or long term and If f&O is not under head of speculative business than under which head it will come

[@harshitpaun1040]

very good and celar way of teaching thankyou sir

[@CAAnoopBhatia]

You are most welcome :)

[@sudhanshudixit646]

Brilliant Sir...

[@CAAnoopBhatia]

Thanks.

[@aniruddhachatterjee3052]

How to shown in loss F&O transaction in ITR-3 because of that books of Accounts fill up but defective massage shown in ITR filing, and in that case not cross that audit limit. Where your suggestions?

[@CAAnoopBhatia]

Without understanding the complete facts I may not be able to comment specifically would thus advise you to consult a nearby professional.

[@rtn4860]

Trading is not my main business activity. First time only few transactions in F & 0 around 9 Lakh...and loss arising of 2 lakh .. Can I treated this as capital loss...and set off them from my STCG ???

[@Creator-kz2lp]

Agar koi kisiko shares gift kare, toh uske tax implications kya hote hai?

[@geographybynaveenkumarjhaj2722]

Bhatia sir namskar Kya government servent f&o v commodity me paisa laga sakta h kya

[@CAAnoopBhatia]

Unless your service rules prevent you may do so.

[@geographybynaveenkumarjhaj2722]

@@CAAnoopBhatia सर राजस्थान सर्विस रुल्स में तो यह लिखा है कि शेयर में सट्टेबाजी नहीं कर सकते। अब सट्टेबाजी में ये सेगमेंट होते हैं या नहीं

[@sanchitaggarwal1825]

As in your example, turnover is shown as 31500 and loss is for 1500. What would be shown in purchase price while preparation of trading account ? What is the method for calculation of purchase price for trading account ?

[@CAAnoopBhatia]

Please show net profit or loss from F&O rather than showing purchase and sale. Please refer the following link even: kzbin.info/www/bejne/bmG5lmCGYs2hiK8