The Tax Preparation Blog

Archive for March, 2006

Question: rate of taxation on F&O trading in India?

I am a salaried individual and for FY 2009-2010 my taxable income is Rs. 16000. I also have profit of Rs. 80000 from trading in F&O segment. If income from F&O is to be shown as business income what will be rate of tax on this income and which IT return form should I use.

Regards

Answer: Income from futures, options and derivatives is called income from business and profession. You will have to file returns in form ITR-4.

Section 43(5) provides that such transactions will not be treated as speculative, if the transaction is routed through a recognised stock exchange, is done through a registered broker or sub-broker, where the transaction has a contract note, which specifies the unique code number of such broker or sub-broker, as also your permanent account number and further where the transaction is done on a screen-based trading.
In short it is treated as your ordinary income and taxed at current income tax rate. Any loss from F&O is deductible from your income from wages, interest, business or profession.

Choosing between today and tomorrow

MANY of us hope that the new year would bring us more cheers than 2009 did. Most expect our economy to be better in line with the predictions of many commentators.

12/16/09: White House Press Briefing

The Canadian legal system in every province except for Quebec is based on the British common law system. The Quebec province retains a civil system for issues of private law, however both of these legal systems are subject to the Constitution of Canada. Inside the commonwealth system everything is divided into areas like criminal law or civil law. It this article we will examine the Civil Law area and the Common Law area in Canada.

Common law

Canada belongs to a group of common law countries, so Canadian law adheres to the doctrine of stare decisis. In this system all the lower courts are bound by the decisions of higher courts and must follow it. But this works only inside one province, lower courts from two different provinces are not bound by each others decisions. The decisions made by a province’s highest court like the Court of Appeal, nevertheless are considered as “persuasive” even though they are not binding on other provinces. There is also the Supreme Court of Canada that authority to bind all courts in the country with a single ruling. If a there is a little or no existing Canadian decision on a legal issue it is possible that the court will look to a non-Canadian legal authority for reference. Most often the decisions on other commonwealth countries like the U.S. and England are utilized. While the decisions of English higher courts like the English Court of Appeal are respected and these courts are considered the be persuasive authority, many of the constitution or privacy related issues are solved basing on the decisions of United States courts, because the there is a much greater body of jurisprudence in U.S. law than English law in these areas. Canadian courts are also particularly bind with the decisions of the House of Lords made before 1867, but practice shows that most of these decisions were overturned by the Canadian Supreme Court or simply not considered serious by any of the Canadian lower courts.

Civil law

Civil Law in Canada involves numerous areas of law that contain disputes between parties (individuals, corporations and government). In such disputes parties seek remedies from the court in contractual matters, tort disputes, and property law cases. Civil Law is opposed to Criminal law that is typically enforced by the government, while the civil law, may be enforced by private parties. In Canada Civil Law also includes a growing sphere called Administrative Law, which deals with things like federal and provincial administrative tribunals, including labour boards, human rights tribunals, and workers’ compensation appeal tribunals. These decisions still can be reviewed by superior courts like the Federal Court Trial Division or the Federal Court of Appeal. Also Civil Law contains the Municipal Law area that covers jurisdiction of the provincial legislatures (that naturally varies from province to province). Established by the Supreme Court of Canada, the Charter of Rights and Freedoms applies to the activities of municipal governments.

Corporate/Company Law

Hospitals and health systems should begin placing governance-related reform planning on the board agenda for first quarter 2010. With the impending passage of health care reform, it becomes important to consider the likely governance-related implications for hospitals and health systems.

Federal Estate & Gift Tax changes

The Skinny

by Jim Nintzel RENTAL RELIEF We’re going to press before the Tucson City Council meeting on Tuesday, Jan. 5, but from what we’ve heard from City Council members, there’s little support for City Manager Mike Letcher’s proposed 2 percent tax on residential rental payments. Without that tax, the city will be in the hole by more than $3 million, even after the council takes other steps to shore up …

Import Body Parts Suppliers – Shaved Doorhandles – Source

Question: A question on income tax bands?

I live in England and i’m trying to calculate my income tax liability. This website shows the band rates: http://www.hmrc.gov.uk/rates/it.htm

However, I am unsure about a few things. According to the website, the personal allowance is £5,225. I assume this is the amount that can be earned tax-free.

However, it then says that the “Starting rate” of tax is 10%, and that this is applicable to amounts between £0 and £2,150. But how can this be, if your first £5,225 is tax free?

Answer: The 10% applies to the first £2,150 of “non-exempt” earnings…

… ie the earnings between £5,225 and £7,375.

If you only earn £5,220 a year, you pay no income tax.

If you earn £6,225 a year, you pay £100 income tax… because £5.225 is exempt, leaving £1,000 taxable… and 10% of £1,000 is £100.

Q&A: How to survive in frozen UK

As temperatures plummet and people across the UK battle treacherous conditions, what can you do to keep you and your home warm, and stay safe on the roads?

What is IR35? Media presentation brought to you by Tarpon Ltd

Question: Why does the state of Alaska hold child support payments payed Federal government for 6 months before paying?

Past due child support was collected from my child’s biological father when he was doing his taxes and this money was payed to the State of Alaska on my behalf, but while this money shows up as payed on my online case page, it is not being direct deposited into my personal bank account because according to the CSED case worker I spoke with, it has to be held for six months when it has been payed by the Federal Government…no other explanation at all. I don’t understand this. It makes no sense to me..They can’t be worried that the U.S. Government is insolvent and unable to pay the bill..so why do they have to hold the money for six months?? Very frustrated at this point.

Answer: It is standard policy in all states to withhold Federal income tax refund check collected from delinquent parents.
Some people file Income tax jointly and if the spouse of the delinquent parent wants their portion of the tax return that they are owed from the government they can file for it during this time. Understand the spouse of a delinquent parent does not owe the child support and is entitled to their portion of that check.

How the hell did a child support question become a Hate Palin forum>?

Coming up in the Chesters, the Mendhams, and Harding Township

SUNDAY, Dec. 27 An unlimited breakfast will be served by Bernay’s Apgar American Legion Post 342 from 7 a.m. to noon. Pancakes, French toast and eggs cooked to order, sausage, hash browns, Danish, juice, coffee, tea and hot chocolate will be offered. The post is located at 333 Route 24 East. Admission for adults and children over 12 is $6.50; children 12 and under are $3; and children under 3 …