investment expense deduction for forex trading courses

#Investment expense deduction for forex trading courses professional#

The investor can carry forward the remaining loss for 8 years and set off against future STCG and LTCG

Short Term Capital Loss can be set off against Long Term Capital Gain (LTCG) and Short Term Capital Gain (STCG).

The trader can carry forward such loss and set off against future profits to reduce the income tax liability.

#Investment expense deduction for forex trading courses professional#

Set Off and Carry Forward Loss – Income from TradingĪ trader can claim and set off and carry forward the losses if a tax audit has been conducted by a professional chartered accountant in practice. The trader/investor should determine taxable income for each quarter, calculate tax liability, and make payment of Advance Tax. However, if trader opts for presumptive taxation u/s 44AD, they must pay the entire amount of Advance Tax in a single installment on or before 15th March. Advance Tax is to be paid in quarterly installments on 15th June, 15th September, 15th December, and 15th March. This is so as to avoid Interest under Section 234B and Section 234C. 10,000, then they must calculate and pay Advance Tax. If the tax liability of the trader or investor is expected to exceed Rs. Slab Rates if Traders opt for New Tax Regime Taxable Income (INR) Further, a Cess is liable at 4% on (basic tax + surcharge). Note: Surcharge is liable for the total income as per the prescribed surcharge slab rates. Slab Rates if Traders opt for Old Tax Regime Taxable Income (INR) Following are the slab rates for the old tax regime and the new tax regime.

31st October is the due date for traders to whom Tax Audit is applicableīusiness Income is taxable at slab rates as per the Income Tax Act.

30th September is the due date for traders to whom Tax Audit is applicable.

31st July is the due date for traders to whom Tax Audit is not applicable.

Additionally, if the trader has significant trading activity in equity delivery and mutual funds, it is a Non-Speculative Business Income. Thus, it is a Non-Speculative Business Income.

The definition of Speculative Transactions specifically excludes the intraday trading of Commodity and Currency. Since F&O Trading is a hedge and there is the delivery of the underlying security, it is non-speculative in nature. Hence, this income includes trades in equity F&O, commodity trading, and currency trading. Non-Speculative Business IncomeĪny business income that’s not Speculative in nature is a Non-Speculative Business Income. The trader enters into such transactions for the purpose of hedging and thus such income is a Non-Speculative Income. Thus, equity F&O, commodity trading, and currency trading are non-speculative in nature. The definition of Speculative Transaction specifically excludes derivative transactions. Therefore, it is a Speculative Business Income. Intraday Trading means trading in stock or security by squaring off the trade within the same trading day. Speculative Business IncomeĪs per the Income Tax Act, a contract in which the purchase or sale of any commodity including stocks and shares is settled without actual delivery is called a Speculative Transaction. As per the Income Tax Act, business income can be either Speculative Business Income or Non-Speculative Business Income. Income from trading is treated as a Business Income. Speculative Business Income and Non-Speculative Business Income The trader who has opted for the Presumptive Taxation Scheme should file ITR-4 on the Income Tax Website.

If a trader has Business Income, then he/she should file ITR-3.

If a trader has Income from Capital Gains, then he/she should file ITR-2.

Further, the income from equity delivery trading may be treated as either capital gains or business income. The income from F&O trading is a non-speculative business income. Income from equity intraday trading is a speculative business income.

Income Heads and ITR Form for Trader or Investor Tax Loss Harvesting – Income Tax on Trading.Tax Audit Applicability – Income Tax on Trading.Calculate Trading Turnover – Income Tax on Trading.Set Off and Carry Forward Loss – Income from Trading.Calculate Advance Tax on Trading Income.Speculative Business Income and Non-Speculative Business Income.Income Heads and ITR Form for Trader or Investor.