I file revenue tax return (ITR) 3. I’ve wage revenue, dividend revenue and curiosity revenue from time period deposits. I incurred losses underneath future and choice (F&O) buying and selling. Can the losses underneath F&O buying and selling be set off towards the dividend revenue and curiosity revenue . I’ve incurred some bills for F&O commerce as I bought a software program and a few books. Can these bills even be added to the losses?
— B Mahesh Kumar Singh
Revenue / loss on account of future and choice (F&O) buying and selling could also be thought of as enterprise revenue or capital good points (relying upon an in depth examination of things comparable to quantity of commerce, frequency of transactions, common holding interval, mode of funding, says Central Board of Direct Taxes (CBDT) press launch dated 24 August 2019 and so forth). Within the instantaneous case, it’s assumed that the revenue/ loss on account of futures and choices buying and selling is taken into account as earnings and good points of enterprise or occupation.
As per the provisions of the revenue tax regulation, any expenditure incurred wholly and completely for the needs of the enterprise may be claimed as deduction from the enterprise revenue.
Accordingly, in case the desired bills are wholly and completely for the F&O buying and selling, the identical could also be claimed as a deduction towards the enterprise revenue. The place any expense (comparable to software program) is capitalized, deprecation as prescribed could also be claimable towards the enterprise revenue.
Additional, losses from enterprise may be set off towards revenue chargeable to tax underneath any head of revenue (aside from wage revenue), throughout the identical monetary 12 months (FY). Accordingly, within the instantaneous case, present FY loss from F&O buying and selling may be set off towards dividend and curiosity revenue of the present FY.
Moreover, relying on the turnover / gross receipts / revenue of the enterprise, nature of enterprise, applicability of tax charges (regular or presumptive tax charges), applicability of GST and compliance thereunder, applicability of sustaining books of accounts and conducting tax audit would must be evaluated.
I’m working in an IT firm which works 5 days every week. I’ve bought a proposal letter at present. The discover interval that I serve on this firm is 2 months. If I serve discover, by the point I launch, I can full 4 years 195 days. So, am I eligible to get the gratuity?
— Prasannanjaneyulu Ok
As per part 4 of the fee of Gratuity Act, 1972 (‘the Act’), an worker is eligible for gratuity if an worker has rendered steady service for a minimum of 5 years.
Additional, as per part 2A of the Act, an worker is claimed to be in steady service of 1 12 months if the worker has labored underneath the employer for not lower than 190 days (in case of firm which works 5 days every week) / 240 days (in case of firm which works 6 days every week). Contemplating that you can be finishing 4 years and 195 days of service and your organization works for five days every week, thus you need to be eligible for receiving gratuity.
Parizad Sirwalla is companion and head, international mobility providers, tax, KPMG in India.
Supply: Live Mint