Tuesday 22 December 2015

Five Reasons Why You Can Get an Income Tax Notice

Five Reasons Why You Can Get an Income Tax Notice


Receiving an income tax notice can be scary for most people. From not filing returns to hiding interest income, the reasons can vary for attracting a notice. Avoid these most common mistakes if you don't want to get an income tax notice.

1) Not filing income tax returns

According to income tax law, if your gross income (without any deductions) is above the exempted limit of Rs 2.5 lakh in case of individuals, Rs 3 lakh for senior citizens (60-80 years of age) and Rs 5 lakh for super seniors (above 80 years), you are liable to file a tax return. Also, irrespective of the fact that your employer has deducted the tax at source (TDS) or not, you have to file an income tax return. Many people also believe that since they don't have a tax refund to claim, they don't need to file return. But that's a misconception.

According to Preeti Khurana, chief editor of Cleartax.in, "If you are a resident Indian and you own a foreign asset or are a signing authority in a foreign bank account, you have to file an income tax return irrespective of your income." If you fail to do so, you may get a notice from the income tax department, she added.

2) TDS errors

If there is mismatch between the TDS deposited by your employer and the income tax return filed by you, you may get an income tax notice. You should always check your tax credit statement (Form 26AS) online before filing the return. If a wrong TDS has been credited to your account or it has been credited to a wrong PAN, despite it being deducted from your salary, you can come under scrutiny.

3) Hiding interest income

Many people knowingly or unknowingly don't include the interest income from their saving account, fixed deposits and recurring deposits in their income tax returns. The interest from saving account up to Rs 10,000 is tax deductible under Section 80 TTA while interest on fixed deposits and recurring deposits is fully taxable. In case of fixed deposits and recurring deposit, a TDS will be deducted in case the interest income exceeds Rs 10,000 in a financial year. But whether the interest is taxable or not, you have to disclose all your interest income in your tax return. So reveal the interest income in your return and then avail the deduction if any. Not doing so can result in a tax notice.

4) Mismatch or concealment of income

If your actual income, expenditure or investments differ from the one declared in your income tax return, you can get an income tax notice under Section 143(3)/143(7). You would be asked to provide clarifications and documents for re-calculation of your income.

"Notice is issued when tax authorities are of the opinion that you have concealed a part of your income while filing your return of income. Penalty for concealment of income can be up to a maximum of 300 per cent of tax payable." says Neha Malhotra, executive director of taxation at Nangia & Co.

"The tax authorities can send notices pertaining to years gone by as well. So it is advisable to preserve the tax records for eight years, but where the assessee has any asset situated outside India, he should preserve the documents for past 18 years," she said.

5) Defective income tax return

You should be careful while filing your income tax return. If the income tax authorities find any error they can issue a notice to you under Section 139(9) and direct you to file a revised return on income after correcting the error.

Seven ways to earn tax-free income

Seven ways to earn tax-free income


Use these strategies to make the most of opportunities offered by tax laws and reduce your tax liability.

Use indexation to nullify tax

High inflation has been a curse for investors in the past few years, but for some, it has been a boon. Tax rules allow inves- tors to adjust the cost of an asset to infla- tion during the holding period.

Invest through a non-working spouse

If you gift money to your wife and it is invested, the taxman will club the earning with your income for the year. But if you invest in tax-free instruments like PPF or tax free bonds, there is no tax implication.

Avail of minor exemption

If you invest in a minor child's name, the income is clubbed with that of the parent who earns more. However, there is a small `1,500 exemption per child per year from such investments. You can avail of this for a maximum of two children.

Take help of an adult child

After a person turns 18, he is treated as a separate individ ual for tax purposes. His earnings are no longer clubbed with his parent's income. Save on tax by investing in the name of an adult offspring.

Parents can help too

Your parents can also help you avoid the tax net. If any or both of your parents do not have a high income, while you are in the highest 30% tax slab, you can invest in their name to earn tax-free income. Such income is not clubbed.

Revive your forgotten Ulip

Most of us have Ulips in our portfolios and many of us have stopped paying the premium. If you are part of this crowd, you can use your Ulip to earn tax-free income. Pay all the pending premiums at one go and earn tax free returns. 7 FORM AN HUF WITH INHERITED WEALTH Double your basic exemption and savings limit simply by establishing a Hindu Undivided Family (HUF). The tax authorities treat the HUF as a separate entity. It is entitled to the same tax benefits.

Monday 23 November 2015

Steve Jobs kept meetings small

Three ways Steve Jobs made meetings insanely productive



American businesses lose an estimated $37 billion a year due to meeting mistakes. Steve Jobs made sure Apple wasn't one of those companies. (Getty Images)


American businesses lose an estimated $37 billion a year due to meeting mistakes.

Steve Jobs made sure Apple wasn't one of those companies.

Here are three ways the iconic CEO made meetings super productive:

1. He kept meetings as small as possible

Jobs kept meetings small.

In his book "Insanely Simple," longtime Jobs collaborator Ken Segall detailed what it was like to work with him.

In one story, Jobs was about to start a weekly meeting with Apple's ad agency.
Then Jobs spotted someone new.
"He stopped cold," Segall writes. "His eyes locked on to the one thing in the room that didn't look right. Pointing to Lorrie, he said, 'Who are you?'"

Calmly, she explained that she was asked to the meeting because she was a part of related marketing projects. Jobs heard her, and then politely told her to get out.

"I don't think we need you in this meeting, Lorrie. Thanks," he said.

He was similarly ruthless with himself. When President Barack Obama asked him to join a small gathering of tech moguls, Jobs declined - the president invited too many people for his taste.

2. He made sure someone was responsible for each item on the agenda


Jobs held people accountable for each agenda item. In a 2011 feature investigating Apple's culture, Fortune reporter Adam Lashinsky detailed a few of the formal processes that Jobs used, which led Apple to become one of the world's most valuable companies.

At the core of Job's mentality was the "accountability mindset" - meaning that processes were put in place so everybody knew who was responsible for what.

As Lashinsky described:

Internal Applespeak even has a name for it, the "DRI," or directly responsible individual. Often the DRI's name will appear on an agenda for a meeting, so everybody knows who is responsible. "Any effective meeting at Apple will have an action list," says a former employee. "Next to each action item will be the DRI." A common phrase heard around Apple when someone is trying to learn the right contact on a project: "Who's the DRI on that?"


The process works. Gloria Lin moved from the iPod team at Apple to leading the product team at Flipboard - and she brought DRIs with her.


They're hugely helpful in a start-up situation.


"In a fast-growing company with tons of activity, important things get left on the table not because people are irresponsible but just because they're really busy," she wrote on Quora. "When you feel like something is your baby, then you really, really care about how it's doing."

3. He wouldn't let people hide behind PowerPoint

Jobs preferred "freewheeling face-to-face meetings" to more formal ones. Walter Isaacson, author of the "Steve Jobs" biography, said, "Jobs hated formal presentations, but he loved freewheeling face-to-face meetings."

Every Wednesday afternoon, he had an agenda-less meeting with his marketing and advertising team.

Slideshows were banned because Jobs wanted his team to debate passionately and think critically, all without leaning on technology.

"I hate the way people use slide presentations instead of thinking," Jobs told Isaacson. "People would confront a problem by creating a presentation. I wanted them to engage, to hash things out at the table, rather than show a bunch of slides. People who know what they're talking about don't need PowerPoint."

Wednesday 11 November 2015

10-point Guide to Gold Schemes

10-point Guide to Gold Schemes Launched By PM Narendra Modi




Prime Minister Narendra Modi also unveiled a gold coin with the Ashok Chakra engraved on one side.
NEW DELHI: Prime Minister Narendra Modi today launched three gold schemes, including a gold monetization scheme, to lure tonnes of gold from households into the banking system. It is aimed at cutting imports.

Here is your 10-point cheatsheet:
  1. Under the scheme, banks will collect gold for up to 15 years to auction them off or lend to jewellers from time to time. They will pay 2.25-2.50 per cent interest a year, higher than previous rates of around 1 per cent.
  2. The country has amassed about 20,000 tonnes of gold worth over $800 billion (Rs.52.40 lakh crore) in family lockers and temples and previous attempts at mobilising this gold have been unsuccessful.
  3. "20,000 tonnes of gold is just lying unused. That is the reason we are poor," PM Modi said today and added, "If we make some effort in the right direction, we can be free of this tag."
  4. People can deposit a minimum 30 grams of raw gold - bars, coins, jewellery excluding stones and other metals. There is no maximum limit for deposits under the scheme.
  5. A Gold Sovereign Bond Scheme also launched today offers 2.75 per cent interest to domestic investors to cut physical buying. Interest on gold bonds, which can be used as collateral for loans, will be payable every six months.
  6. PM also unveiled a gold coin with the Ashok Chakra engraved on one side. These gold coins weigh five or 10 grams. A 20-gram gold bar will also be available for purchase.
  7. Industry experts and bankers say many prospective depositors may not take up the monetization scheme due to concerns that the tax department could question the source of gold.
  8. Investors will have to disclose their permanent account number, registered with the income tax department, if the value of gold is worth more than Rs. 50,000. Some people fear it is a way for the government to keep a tab on the source.
  9. Another concern is the likely loss of 20-30 per cent of the weight of jewellery as it is melted at certified centres at the cost of the depositor. Also, say experts, some people may find conventional bank deposit rates of 8 per cent more attractive.
  10. Huge gold imports pushed India's current account deficit to a record $190 billion (Rs. 12.48 lakh crore) in 2013, prompting the government to hike its duty on imports to a record 10 per cent. Imports fell to an estimated $34 billion (Rs. 2.23 lakh crore) in 2014-15, but PM Modi is looking to cut that further.
Story First Published: November 05, 2015 10:55 IST
http://www.ndtv.com/cheat-sheet/pm-narendra-modi-on-gold-monetization-scheme-highlights-1240289

Sunday 1 November 2015

Tax Benefits & Implications of Declaring Trading as a Business Activity

Tax Benefits & Implications of Declaring Trading as a Business Activity
Traders or investors are obligated under the income tax regulations to file their returns in right manner and pay taxes on their trading profits. So, it becomes important for any trader to understand the taxation treatment of trading business in India so that they can plan their trading activity accordingly and achieve their goals.

The first and foremost decision that any market participant has to make before starting filling Income tax is to declare whether he / she is an investor or a trader? Income tax regulations in India treats the activity of a trader and investor in different ways and have in-turn different taxation treatment and obligations.

We hereby in this article are outlining the benefits and implications for declaring self as a trader under the Income tax regulations. This is in-turn in continuation to our complete tax guide article Part VIII – Getting Started With Trading – Tax Guide for Traders in India for traders to understand the taxation treatment of trading business in India and Q&A : Tax Guide for Traders in India to answer many why`s and how`s of taxation for traders in India.

Who is a Trader?

A trader is someone who actively trades in the stocks, future & options, currency and commodities market. So, if you day trade or BTST in stocks (without taking delivery in your dmat), or trade in F&O segment (whether positional or intraday), then you have to declare self as a trader and not an investor.

If you are trading futures & options or day trading stocks on a recognized stock exchange, then you have to declare yourself as a Trader. So, equity trading for short term or long term will be considered as Business Trading and will be taxed just similar to taxation of ‘Futures & Options’.

Profits arising out from selling a stock after holding it for 12 months or less than 12 months or from trading derivatives will be treated as a Business Income and added to your total income and taxed according to your new respective tax slab.

Tax Benefits for a Trader

#1. Low Income Tax

If you are a trader, the total Income from trading and any other income is less than 2.5 Lacs then all the income will be tax free. This works in benefit for the full-time traders doing short term trading as they need not to incur the 15% tax on short term capital gain or those falling below the minimum tax bracket. While on the other hand, if you are an investor then even if your total income is less than the minimum tax bracket of Rs. 2.5 Lacs, you are mandated to pay 15% tax on short term trading gains.

#2. Set-off Losses with Other Income / Gains

Any loss arising from trading activity will be considered as a Business Loss and same can be offset against any other business income except salary.

Income from Rent, interest from saving bank account can be offset against the losses from trading.

For Example, In the year 2013-14, Mr. Shrinivasan has a annual salary of Rs. 6 lacs and he has incurred a total loss from derivatives of Rs. 1 lac and his income from other sources (rent, interest and other income apart from salary) is Rs. 1.5 lacs then his taxable income will be Rs. 6.5 Lacs (6 lacs + 1.5 lacs – 1 lac) and will be taxed according to his tax slab of 20% on 6.5 Lacs.

#3. Set-off Trading Expenses to reduce Taxable Income

For an active trader, all the income from trading is considered to be a business income so you can offset that trading income with the business expenses you incur to earn it.

Business expenses including STT, Rent, Brokerage Charges, Internet Charges, Advisory Fees, Computer Depreciation, Electricity Bill, Telephone Bills, Research Reports, Newspaper, Books, Software and Data Feed Charges etc can be used to reduce the taxable income from Speculative/Business Income. You can mention any other expenses that is incurred for undertaking your trading activity under the section “Other Expenses”.

In case of depreciation of assets, the purchase cost of assets cannot be treated as business expense as they are an asset and not an expense. But you can claim depreciation for assets (computer, laptop) during a course of time and offset it against the business income or profits to reduce your tax liability.

There are no limits for the business expense that can be claimed but any amount that is claimed need to be justified and supporting proofs must be presented and justified that they are incurred for conducting the trading activity, if asked by the Income Tax department. So, for any expenses you mention maintain the supporting documents for any future reference.

While in case of a capital gain (Short term or long term), only charges in contract notes other than STT and these business expenses cannot be claimed as an expense to reduce your taxable income.

#4. Carry forwarding the Business Losses & Speculative Business Losses in Subsequent Years

Any loss arising from the non speculative trading activity (Trading F&O`s) will be considered as Business Loss and can be offset against any other business income except salary. The balance, if any, can be carried forward and set off against business income within eight assessment years immediately succeeding the assessment year in which the loss was first computed.

For Example, In the year 2013-14, Mr. Shrinivasan has a annual salary of Rs. 6 lacs and he has incurred a total loss from derivatives of Rs. 1 lac and his income from other sources (rent, interest and other income apart from salary) is Rs. 50,000 then he can offset his loss against Rs. 50,000 income and can carry forward the remaining loss of Rs. 50,000 for the next year.

While any loss from the day trading will be considered as a Speculative Business Loss and can be carried forward against only speculative profit within the period of next 4 years.

Suppose, Mr. Srinivasan had incurred a day trading loss of 1 lac and booked a short term profit of 2 lacs during the same year, then the 1 lac loss cannot be netted off against 2 lacs profit. So, he has to pay short term tax on 2 lacs profit and 1 lac loss can offset against any speculative profits within next four years.

To get the benefit of carry forwarding the losses, it has to be filed in your income tax before the due dates for the financial year to get any benefit. Otherwise, you cannot claim the benefit.

Implication for a Trader

#1. High Taxes

Traders who fall under the higher tax bracket of 20% or 30% has this implication of paying more taxes on their trading profits as they don`t get the benefit of the tax free return on Long term capital gains on stocks or 15% on Short Term Capital Gains on Stocks.

#2. Audit

Traders with higher trading volumes are obligated under tax laws to undergo the audit of accounts if the Turnover for the financial year is greater than Rs. 1 crore and if your profit are less than 8% of your turnover.

#3. Implications of Filling Tax

Traders under the income tax laws are required to file their tax returns under forms ITR 4 or ITR4(S) which will require the need of a chartered account to file while the filling is more easy for investors to file via ITR forms ITR1 & ITR2.


justtrading.in

Part VIII – Getting Started With Trading – Tax Guide for Traders in India

Just Trading
(Updated as on Aug 2015)


Traders today have so much of compelling options to trade in the stock market varying from stocks, futures, or options to manage their capital more wisely and achieve their trading objectives. But on the other side, they are obligated under income tax regulations to file their returns in right manner and pay taxes on their trading profits. So, it becomes important for any trader to understand the taxation treatment of trading business in India so that they can plan their trading activity accordingly and achieve their goals.

In an attempt to make your task simple and easier while filing your income tax, we are writing these series of posts to help you understand how we traders are obligated under the law to take care of filling of our trading activities.

Classification of Trading / Investment Income

Income from trading or investment activity can be classified into four different sets:-
  1. Long Term Capital Gain 
  2. Short Term Capital Gain 
  3. Speculative Business Income 
  4. Non-Speculative Business Income 

Long Term Capital Gain

Stocks sold after holding for more than 365 days – Tax Free

Investments for more than one year (365 Days) are considered to be long term and profits arising out from selling a stock after holding it for 12 months will be treated as a long term capital gain (LTCG) which as per the section 10 (38) of the income tax act is exempt from tax provided such a transaction is done through a recognized stock exchange for which Security transaction tax (STT) is paid. Enjoy 100% of the profits you made out of your long term investments.

Short Term Capital Gain

Stocks sold after holding for more than one but less than 365 days – 15% Tax

Any profit arising out from selling a stock after holding it for less than 12 months will be treated as a short term capital gain and will be taxed at 15% provided you take the delivery of shares in your demat account (Exchange has a settlement time of T+2 working days, so any stock that you bought on Monday comes in your dmat account only on the 2nd day from date of purchase i.e. Wednesday).

Speculative Business Income

Equity Intra-Day or Non-Delivery Trading – Taxed as per Tax Slab

Any transaction where you buy and sell the shares on the same day is a Day Trade. Any profits and losses arising from any such transaction will be considered as Speculative Activity.

As per section 43(5) of the Income Tax Act, 1961, profits earned by trading equity for intraday or non-delivery is categorized as Speculative Business Income and will be added to your other income under the head income from business / profession and will be taxed according to your total income slab.

Non-Speculative Business Income

Futures & Options Trading – Taxed as per Tax Slab

Income from trading Futures & Options (F&O) on a recognized exchanges (Equity, Commodity or Currency) will be considered as Non-Speculative Business Income. These income must be added to your total income and taxed according to your new respective tax slab.

As these incomes are considered as business income, so you can offset it with business expenses you incur to earn it like depreciation, internet bills, advisory fees, software charges, and more.

Are You an Investor or a Trader?

The first and foremost decision that any market participant has to make before starting filling Income tax is to declare whether he / she is an investor or a trader? Income tax regulations in India treats the activity of a trader and investor in different ways and have in-turn different taxation treatment and obligations.

Who is an Investor?

Trading Activity as Investment

An investor is someone who participates in Equity segment and buy shares of companies and sell it after holding it for some period of time. So, if you buy shares and sell it after taking the delivery in your dmat account, do not trade in F&O segment, or do not trade stocks for intraday or BTST then you can declare self as an Investor and enjoy the benefits of an investor as per income tax rules. So, taxation for investor lies only for long and short term trading in stocks and if you trade stocks intraday or BTST or trade F&O, then you cannot declare yourself as an Investor.

An important consideration here is that if your short term trading is more frequent (i.e. many times within a week) then you have to call you short term trading as Business Income rather Short Term Capital Gain.
Another thing which is required to be considered here is that, if you are a full time trader (i.e. trading or investment is your only source of income) then it is better to consider your income as income from business.

All the taxation rules for an investor is illustrated and detailed in Section – I.

Who is a Trader?

Trading Activity as Business

A trader is someone who actively trades in the stocks, future & options, currency and commodities market. So, if you day trade or BTST in stocks (without taking delivery in your dmat), or trade in F&O segment (whether positional or intraday), then you have to declare self as a trader and your trading will be considered to be as business activity and will be taxed as per Business Income.

Read Tax Benefits & Implications of Declaring Trading as a Business Activity.

All the taxation rules for an investor is illustrated and detailed in Section – II.

Apart from the above, there are some other considerations required to be taken into account while classifying their trading activity as Business or Investment.

Who is both A Trader & An Investor?

The rules above are very much clear for those who trades actively in Futures & Options (Non-Speculaitve Business Income) and do Intraday trading (Speculative Trading). So those traders have to consider their trading as a business activity.
The taxation rules are clear for speculative day trading and non-speculative futures trading, as any income from these two sources will surely has to be declared as business income. Even for the salaried, such activity has to be considered as business and will be taxed as the Business Income.

The above criteria are very much applicable to those whose only source of income is trading business but if you are salaried or you have some other business income as your primary or core income source then it becomes easier to show your equity profits as capital gains.

For long term investments, all the stocks that you have sold after holding for more than one year can be declared as long term capital gain and thus exempt from tax while if you are trading stocks frequently then all these income should be declare as speculative rather than capital gain.

But another view on this lies with that if you are trading f&o and doing frequent short term equity then you have to declare self as a trader but even then you can declare your long term profits as long term capital gains and be exempt from taxes. So, you can be a trader as well as an investor at the same time.

Therefore, it becomes important to stay consistent with what you are declaring self while doing tax returns. So, consult a CA to determine what to declare self while filing tax returns to achieve your trading objectives in futures.

Income from Equity Trading – Business Income or Capital Gain? – Coming Soon

Section – I Taxation for Investors in India

Taxation on Trading Stocks in India for Investors

Long Term Trading Tax in India / Long Term Capital Tax on Stocks in India for Investors

Stock hold for more than 12 months – Long Term Capital Tax

Investments for more than one year are considered to be long term and attract no tax on profits. Profits arising out from selling a stock after holding it for 12 months will be treated as a long term capital gain (LTCG) which as per the section 10 (38) of the income tax act is exempt from tax (provided such a transaction is done through a recognized stock exchange for which Security transaction tax (STT) is paid). Enjoy 100% of the profits you made out of your long term investments. 

While on the other hand, any loss arising from selling the stock after 12 months will not be adjusted against any short or long term capital gain from any source.

Suppose, Mr. Shrinivasan has bought 1000 shares of Tata Motors at Rs. 260 on April 9th 2013 and he sold it at Rs. 500 on Sept 17th 2014, then the total long term profit of Rs. 2.4 Lacs arising from this investment will be exempt from tax and he can enjoy the 100% profits and don`t have to pay any income tax on it.

While on the other hand, if he has bought 1000 shares of DLF at Rs. 230 on April 9th 2014 and sold it at Rs. 167 on Sept 17th 2014, then the total short term loss of Rs. 63,000 arising from this investment will not be adjusted against the profit made from Tata Motors or any other source.

If the investment and the consequent sale were done via an off-market transaction (transferring from one DP to another persons DP), then the Long Term Capital Gain Tax on:-
Listed stocks is 10%
Non listed stocks is 20%

Short Note for Taxation for Long Term Investing In India

#1. Profits or Losses from long term investments will be treated as Long Term Capital Gain or Loss.
#2. Profits from Long term investments will be tax free (Provided they are done through an exchange and sold after holding for more than one year, i.e. 365 days)
#3. Losses from Long term investments cannot be adjusted against any short term and long term profits.
#4. STT paid to the Govt cannot be claimed as expense for Investing.

Short Term Trading Tax in India / Short Term Capital Tax on Stocks in India for Investors

Stocks hold for less than 12 months – Short Term Capital Tax

Any profit arising out from selling a stock after holding it for less than 12 months will be treated as a short term capital gain and will be taxed at 15% provided you take the delivery of shares in your demat account (Exchange has a settlement time of T+2 working days, so any stock that you bought on Monday comes in your dmat account only on the 2nd day from date of purchase i.e. Wednesday).
While on the other hand, any loss arising out of the short term trading can be carry forwarded to a period of 8 years against any short term capital gain or long term capital gain, if these loses are declared while filling the income tax returns.

Suppose, Mr. Shrinivasan has bought 1000 shares of Tata Motors at Rs. 260 on April 9th 2013 and sold them at Rs. 420 on Mar 04th 2014, then he has to pay a short term capital gain tax of 15% (i.e. Rs. 24,000) on his profit of Rs. 1.6 Lacs.
While on the other hand, if he has bought 1000 shares of DLF at Rs. 230 on April 9th, 2013 and sold them at Rs. 140 on Mar 04th 2014, then the total loss of Rs. 90,000 arising from this investment can be netted against the profits made from Tata Motors or any capital gain arising within the period of 8 years.

Short Note for Taxation for Short Term Investing In India

#1. Profits or Losses from short term investments will be treated as short term capital gain or loss.
#2. Profits from short term investments (within one year) will be treated as short term capital gain and taxed at 15%.
#3. Loss from short term investments can be carry forwarded to a period of 8 years against any short term capital gain or long term capital gain, if these loses are declared while filling the income tax returns in respective years.

Investors should take a good note of the total holding period of any stock they are planning to sell, as any stock sold after holding it for even 364 days will be considered as short Term and not Long Term. So, to take the benefit of the long term capital gain keep a fair note on the holding period of the stock.

Another important point to consider here is that if you have bought and sold the same shares many times, then you will have to use FIFO method to calculate the holding period and in-turn your Capital Gains.

Section – II Taxation for Traders in India

Taxation on Long term Equity, Short term Equity & F&O Trading in India for Traders – Non-Speculative Business Income / Loss

Equity Delivery and F&O Trading – Taxed as per Income Tax Slab

If you are trading futures & options or day trading stocks on a recognized stock exchange, then you have to declare yourself as a Trader. So, equity trading for short term or long term will be considered as Business Trading and will be taxed just similar to taxation of ‘Futures & Options’.

Profits arising out from selling a stock after holding it for 12 months or less than 12 months (excluding equity day trade or BTST) or from trading derivatives will be treated as a Business Income and added to your total income and taxed according to your new respective tax slab.
As these incomes are considered as business income, so you can offset it with business expenses you incur to earn it like depreciation, internet bills, advisory fees, software charges, and more.

While on the other hand, any loss arising from trading derivatives will be considered as Non Speculative Business Loss and can be offset against any other business income including speculative business income (Income from Day Trading) except salary in the same year. So you can set-off against bank interest income, rental income, capital gains, but only in the same year.
The balance, if any, can be carried forward and set off only against non-speculative business income within eight assessment years immediately succeeding the assessment year in which the loss was first computed.

For Example, In the year 2013-14, Mr. Shrinivasan has a annual salary of Rs. 6 lacs and he has incurred a total loss from derivatives of Rs. 1 lac and his income from day trading is Rs. 25000 and other business income (apart from salary) is Rs. 1.5 lacs then his loss from derivatives (1 Lacs) can offset from day trading income (25000) and other sources (75,000).
Therefore, his taxable income will be Rs. 6 lacs + [25000 + 1.5 lacs – 1 lac] is Rs. 6.75 Lacs and will be taxed according to his tax slab of 20%.

The above criteria are very much applicable to those whose only source of income is trading business but if you are salaried or you have some other business income as your primary or core income source then it becomes easier to show your equity profits as capital gains.

If you are trading F&O and doing frequent short term equity then you have to declare self as a trader but even then you can declare your long term profits as long term capital gains and be exempt from taxes. So, you can be a trader as well as an investor at the same time.

So, taxation rules are clear for speculative day trading and non-speculative futures trading, as any income from these two sources will surely has to be declared as business income.

But for long term investments, all the stocks that you have sold after holding for more than one year can be declared as long term capital gain and thus exempt from tax while if you are trading stocks frequently then all these income should be declare as speculative rather than capital gain.

Therefore, it becomes important to stay consistent with what you are declaring self while doing tax returns. So, consult a CA to determine what to declare self while filing tax returns to achieve your trading objectives in futures.

Short Note:

#1. Speculative Trading in Stocks or F&O trading requires you to declare yourself as a Trader.
#2. Profits or Losses from equity trading for long term or short term and derivatives trading will be taxed as Income from Business/Profession, if trading is your only source of Income.
#3. Profits will be added to your total income and taxed according to your respective tax slabs.
#4. Losses from derivatives trading cannot be deducted from salary income but can be offset against any other income (including day trading income) in same year.
#5. Losses can be carried forward and set off only against non-speculative business income within eight assessment years immediately succeeding the assessment year in which the loss was first computed.
#6. Business expenses including depreciation, internet bills, advisory fees, software charges, and more. can be offset against your profits income.
#7. ITR 4 should be used while filling taxation for individuals trading derivatives.
#8. The only thing that you’ll have to know is whether to get your books audited or not. So, If you turnover for the financial year is > 1 crore and your profits are less than 8% of the turnover, you have to compulsorily get your books audited. But if you total income is below the taxable limit, then there is no need to undergo tax audit.
#9. Taxation rules are clear for speculative day trading and non-speculative futures trading, as any income from these two sources will surely has to be declared as business income. If you are trading F&O and doing frequent short term equity then you have to declare self as a trader but even then you can declare your long term profits as long term capital gains and be exempt from taxes. So, you can be a trader as well as an investor at the same time.

Taxation on Intraday Trading (Equities) in India – Speculative Business Income / Loss

Equity Day Trading (Intraday Trading) or Non-Delivery Trading – Taxed as per Income Tax Slab


Any transaction where you buy and sell the shares on the same day is a Day Trade. Any profits and losses arising from any such transaction will be considered as speculative and will be added or netted of against your income from business/profession.

So, any profit from day trading (equities) will be considered as a speculative income and will be added to your other income under the head income from business / profession and will be taxed according to your total income slab.

Suppose, Mr. Srinivasan`s total salary income is Rs. 6 lacs and his day trading profits for the year is 1.5 lacs, then his total income will be 7.5 lacs and will be taxed as per 20% slab.

While on the other hand, any loss from the day trading will be considered as a speculative loss and can be carried forward against only speculative profit within the period of next 4 years and not against long term or short term capital gains or non speculative income (F&O Income) as per Section 73(1) of the Income Tax Act, 1961.

Suppose, Mr. Srinivasan had incurred a day trading loss of 1 lac and booked a short term profit of 2 lacs during the same year, then the 1 lac loss cannot be netted off against 2 lacs profit. So, he has to pay short term tax on 2 lacs profit and 1 lac loss can offset against any speculative profits within next four years.

Short Note:

#1. Profits or Losses from day trading equity will be considered as Speculative Profit or Loss.
#2. Profits from day trading equities will be considered as speculative income and will be added to other income and taxed as per your tax slab.
#3. Any loss from speculative (day trading equities) cannot be adjusted against short or long term profits or non speculative income (F&O Income) but can be offset against speculative profits within the next four years.

Set-off & Carry forward the Business Losses

To carry forward the losses in the subsequent years, the perquisite is that they should be filed in the same year the losses were incurred, else you cannot carry forward them in the subsequent years.

Speculative business losses (Equity Intraday Trading Losses) can be carry forward for a period of 4 years and can be set-off only against any speculative gains and not against non-speculative (F&O) gains,

Non-Speculative Business Losses (F&O Trading Losses) can be set-off against any other business income ( bank interest income, rental income, capital gains) except salary income in the same year and balance if any can be carry forward for the next 8 years and can set-off only against any non-speculative gains made in that period.

Mandatory Tax Audit for Traders

Any trader will have to undergo the audit of accounts if the Turnover for the financial year is greater than Rs. 1 crore (provided his annual income is more than 2.5 lacs). So, if your total income (trading + Salary or other business) is lesser than Rs 2.5 lacs, you don’t need an audit even if the turnover for the year is greater than 1 crore.


How to Calculate the Turnover for Tax Audit?

Turnover is being calculated to determine if you need a tax audit or not?
For Intraday equity — absolute sum of settlement profits and losses per scrip
For Delivery equity — sell side value of the stock
For F&O (Equity, Currency, Commodity) — absolute sum of settlement profits & losses for F&O) per scrip and the sell side value of option contracts

Suppose, you bought 1 lot (25 units) BankNifty futures at Rs. 17700 and sold it at 17800, then you made a profit of Rs. 2500 and say on some other day, you had a loss of Rs. 1500, then the total turnover will be summed up as 2500+1500 = Rs. 4000. So, all such settlement profits & losses added together (absolute) summed together forms up as turnover.

In case of Options,
Suppose you bought BankNifty 19,000 CA @ 100 and sold it @ 300, then turnover will be 25 x (300-100) = 5000.
In another case, suppose you bought BankNifty 19,000 CA @ 100 and sold it @ 50, then total turnover will be 25 x (100-50) = 1250.
Lastly. suppose you bought BankNifty 19,000 CA @ 100 and it expires worthless, then the total turnover will be 25 x (100-0) = 2500.

Difference between Trading Turnover and Settlement turnover for audit?

To understand the difference between the trading and settlement turnover calculation for audit, Refer to the illustration.

Suppose, Mr. Srinivasan bought 100 shares of Tata Motors at 400 and sold 100 shares at 380 then his trading volume will be Rs 78000 but his settlement turnover will be just Rs 100×20= Rs. 2000. So, All such settlement profits and losses summed up together if exceeds Rs 1 crore, only then is the audit required.


Short Key Notes:-

Salaried Traders

If you are a salaried person, then profits from derivatives will be added to your salary income and will be taxed according to your tax slabs. While on the other hand, losses from derivatives trading cannot be offset against the salary income but can be offset against any business income in next 8 years.

Supporting Documents Required while Filing Income Tax for Traders in India

#1. Profit & Loss Statement
#2. Contract Notes
#3. Depository Statements
#4. Bank Statements

Due Dates for Filing Income Tax Returns in India

Any individual trader carrying out trading activity be it long, short or day term are obligated under the income tax law to file their returns before July 31 (This year the date is extended to September 7, 2015) and it is September 30th for companies.

In case your turnover exceeds Rs. 1 crore in a financial year, then the book of accounts needs to be audited and the due date for filling returns is September 30. Under section 271 B, failure to submit the tax audit in time has a penalty of 0.5% of turnover or Rs 1.5 lakhs, whichever is lesser.

STT, Brokerage & other Expenses for Traders

Business expenses including Brokerage Charges, Internet Charges, Advisory Fees, Research Reports, Computer & electronics Depreciation, Electricity Bill, Telephone, Software & Data Feed Charges, Newspaper, Books, STT and rent, etc can be used to reduce the taxable income from Speculative/Business Income. You can mention any other expenses that is incurred for undertaking your trading activity under the section “Other Expenses”. So, for any expenses you mention maintain the supporting documents for any future reference.

STT, or Securities Transaction Tax, is a tax levied on securities trades (excluding commodities or currency trades). Different STT rates are applicable for Equity (cash) and Futures and Options (F&O) transactions. 

STT is levied on trades on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other recognized stock exchanges. For commodities, CTT (Commodities Transaction Tax) is levied.

If the trade is a equity delivery trade, than a tax of 0.1% on the turnover is levied on both the buy side and sell sides of each trade. However, if the trade is squared off (closed) within the same trading day, meaning it is a intra-day transaction, then the STT rate applicable is 0.025% on the sell-side trade(s) only.

Which ITR Form to use for Traders & Investors in India?

For Investors

ITR 1 – Individuals having income from Salary and Interest
ITR 2 – Individuals having income from salary, Interest and Rental

For Traders

ITR 4 or ITR4(S) – Individuals and HUF’s having income from a proprietor business or profession


For Companies

ITR 6

Income Tax Slab – FY 2015-16
For Men/Women below 60 years of age For Senior Citizens (Age 60 years or more but less than 80 years) For Senior Citizens (Age 80 years or more)
Income Level Tax Rate Income Level Tax Rate Income Level Tax Rate
Rs. 2,50,000 Nil Upto Rs. 3,00,000 Nil Upto Rs. 5,00,000 Nil
Rs. 2,50,001 – Rs. 500,000 10% Rs. 3,00,001 – Rs. 500,000 10% Rs. 5,00,001 – Rs. 10,00,000 20%
Rs. 500,001 – Rs. 10,00,000 20% Rs. 500,001 – Rs. 10,00,000 20% Above Rs. 10,00,000 30%
Above Rs. 10,00,000 30% Above Rs. 10,00,000 30%
In case of companies, income tax is a flat 30% and no tax slabs exist.



Important Q&As while filing Taxation for Traders in India

# Is there any loss we can net off against salary?
No, we cannot offset any trading losses against salary income.

# Can we deduct long term capital loss from stocks with business income for computing income tax?
No, we cannot net off the long term losses against any income or gains.

# Can we carry forward the losses if not filed in the financial year?
To get the benefit of carry forwarding the losses, it has to be filed in your income tax before the due dates for the financial year to get any benefit. Otherwise, you cannot claim the benefit.

For Complete list of Q&As, Please Visit
Q&A : Taxation for Traders in India


justtrading.in

Q&A : Tax Guide for Traders in India




This is in continuation to our complete tax guide article Part VIII – Getting Started With Trading – Tax Guide for Traders in India for traders to understand the taxation treatment of trading business in India.

In an attempt to make you task simple and easier while filing your income tax, we are writing these long list of Q&As to answer your many why`s and how`s of taxation for traders in India.

# Is there any loss that we can offset against salary income?
No, we cannot offset any trading losses against salary income.

# Can we deduct long term capital loss from stocks with business income for computing income tax?
No, we cannot net off the long term losses against any income or gains.

# Can we carry forward the long term capital loss?
No, we cannot carry forward any long term capital losses in the following years.

# Can we carry forward any profits in the following years to set off against any loss?
No, You cannot carry forward any profits for the following years, so you have to pay tax for the same in the same financial year.

# How long can you carry forward a short term capital loss?
Short term capital losses can be carry forwarded for a period of eight years against any short term term capital gain or long term capital gain, provided they are declared while filing the income tax returns.

# Can we carry forward the losses if not filed in the financial year?
To get the benefit of carry forwarding the losses, it has to be filed in your income tax before the due dates for the financial year to get any benefit. Otherwise, you cannot claim the benefit.

# Can we settle off the trading losses from derivatives against the salary?
No, the trading losses from derivatives or stocks cannot be adjusted against the salary income.

# Can we settle off trading losses from derivatives against business income or income from other sources?
Yes, trading losses from derivatives can be offset against business income, income from other sources or other heads except salaries and same can be carried forward and set off within eight assessment years.

# Can we set off day trading losses against capital gains?
No, day trading losses cannot be set off against the capital gains as they can only be carry forwarded and adjusted against the speculative profits within a period of four years and not against short or long term capital gains (Section 73(1) of Income Tax Act, 1961).

# Can STT be claimed as Business Expense?

If you an active trader (Trading F&O), then STT and other expenses (rent, electricity, software charges etc) & taxes can be claimed as a business expense. 

But if you are taking the net profit and loss from your contract note then same would be netted off so you can only claim other expenses. Suppose, You bought 100 stocks at Rs 1000 and all your costs (including brokerage, STT etc) adds upto Rs 300, then your actual buying price becomes 1003. If you sell this stock at 1020, the actual cost becomes 1017 (including all costs). Hence your net profit is Rs 1400 and not Rs 2000.

While in case of a capital gain (Short term or long term), STT cannot be claimed as a business expense.

#How much STT is charged on Equity trades?
If the trade is a equity delivery trade, than a tax of 0.1% on the turnover is levied on both the buy side and sell sides of each trade. However, if the trade is squared off (closed) within the same trading day, meaning it is a intra-day transaction, then the STT rate applicable is 0.025% on the sell-side trade(s) only.

# How the BTST – Buy Today Sell Tomorrow (selling equity before taking delivery) will be taxed?
Profits/loss from BTST will be a considered as speculative income or loss. It is still important to see the DP transaction statement, because if delivery is taken then it won’t be speculative anymore and will be considered as short term capital gain or loss.

# Is there any difference in taxation rules for intraday derivatives trading and derivatives trading with carryover position? Is F&O trading for intraday considered speculative?
Trading in derivatives has only single rule, that they will be counted as business income and will be added to salary and taxed accordingly. So, whether you carry your position or square it intraday, there is no difference. It is business income or loss and not speculative.

# Can income from rent be offset against trading losses or Can we set off trading losses against rental income?
Yes, rent income can be offset against the F&O and short term trading losses and not against the day trading losses (Speculative losses).

# Can trading losses be adjusted against the savings bank interest?
Yes, trading losses can be adjusted against the saving bank interest. For savings bank interest, any interest above 10,000 is taxable. (Deduction of up-to Rs 10,000 interest income under section 80 TTA is available). No such deductions is there for Fixed Deposits.

Assuming, you have a interest income of Rs 30000 and loss of 50,000, you will get a 10,000 deduction under section 80TTA and can offset 20000 loss against interest income and can carry forward the remaining Rs 20,000 of the loss to the next year.

# Is there any limit to the business expense that can be claimed?
No, there are no limits for the business expense that can be claimed but any amount that is claimed need to be justified and supporting proofs must be presented and justified that they are incurred for conducting the trading activity, if asked by the Income Tax department.

# Can laptop, computer or internet instrument cost be treated as business expense?
No, the purchase cost of assets cannot be treated as business expense as they are an asset and not an expense. But you can claim depreciation for assets (computer, laptop) during a course of time and offset it against the business income or profits to reduce your tax liability.

# Are dividends taxable?
Dividends are distributed to the investors after cutting down taxes by the distributing comapny. So they are tax free for the investors.

# Should we take the Net Profits (Gross Profits – Brokerages – Other Taxes) or Gross Profits while calculating the Profit / loss for income tax?
While calculating profit/loss for income, you can either do it based on gross or net profits. You can take the gross profits and show expenses like brokerage, turnover charges, other expenses and then deduct it from your gross profits or just take the net profit.

ASCI bans 110 ads

ASCI bans 110 ads, including Amazon, HUL, Dr Batra's, L'Oreal, Godrej Consumer, Marico, Wipro, Thomas Cook, Delhi Metro in June
MONEYLIFE DIGITAL TEAM | 23/09/2014 04:18 PM





Health and personal care category continue to lead with the highest number of complaints received by ASCI during June 2014



The Consumer Complaints Council (CCC) under the Advertising Standards Council of India (ASCI) has banned as many as 110 advertisements out of 127 complaints it received across segments during June 2014. The banned ads are from prominent companies like Hindustan Unilever (HUL)'s Ponds Dream Flower, Emami Damage Control Hair Oil, L'Oreal's Garnier Colour Naturals, Godrej Expert Rich Crème Hair Color, Dr Batra’s Homeopathy Clinic, Marico Ltd's Saffola Gold Oil, Wipro Ltd's Glucovita, ORG Water Purifier, Thomas Cook India, Delhi Metro Rail Corp and Amazon Seller Services Pvt Ltd, Lux Industries Ltd's ONN Premium Inner featuring Shah Rukh Khan; they range from FMCGs to autos, personal accessories to alcohol, and education to media.



“...the CCC upheld complaints against 110 out of 127 advertisements. Out of 110 advertisements against which complaints were upheld, 55 belonged to Personal and Healthcare category, followed by the Education category with 42 advertisements,” ASCI said in a release.



Here are the ads that were banned by ASCI during June 2014…

HEALTH AND PERSONAL CARE

The CCC found the following claims in health and personal care product or service ads of 55 advertisers, released in the print media / TVC to be either misleading or false or not adequately / scientifically substantiated and hence violating ASCI’s Code. Some of the health care products or services ads also contravened provisions of the Drug & Magic Remedies Act. Complaints against the following ads were UPHELD.


1. Hindustan Unilever Ltd (Ponds Dream Flower): The advertisement of Ponds Dream Flower shows a man riding pillion without a helmet. Riding or pillion riding a two wheeler without a helmet is a punishable offence and it promotes unsafe practices.

2. Delhi IVF and Fertility Research Centre: The advertisement claims to be a leading IVF Centre of North India. Successful treatment in case of infertility The tag line ‘Feel the joy of having your own child, age no bar’ read in conjunction with the claim of ‘dedicated Centre for infertility treatment’ implied cure from sterility in women, which is in breach of the law as it violates The Drugs and Magic Remedies Act.

3. Ban Labs Ltd (Dr Care Body Food): The advertisement of Dr Care Body Food claims, based on scientific research and found to be effective during clinical research, “increases immunity and life longevity”. “It provides more improvement than multi vitamins such as physical and mental power. Also improves skin and metabolism.” These claims were not substantiated with clinical evidence and proof of efficacy of the product. The advertiser suggests that consumers to stop using Chyawanprash for 4 months and start using Body Food for 12 months., This claim was not substantiated with comparative data with Chyawanprash for its all season efficacy.


4. Emami Ltd (Emami Damage Control Hair Oil): The advertisement claims that Emami Damage Control Hair Oil is world’s first hair oil that provides damage control was not substantiated and was misleading by omission. The claim “that only the 7 oils in this replenishes proteins and vitamins and repairs damage” was not substantiated with objective experimental data on hair strands.

5. Star Ayurveda (Star Homeopathy): The advertisement of Star Homeopathy claims that it is World's No. 1 Integrated Super Speciality Clinic. The clinic also claims of solving health problems such as Kidney, Infertility, Diabetes and Sex. These claims are violating the Drugs and Magic Remedies Act.

6. Ayurvedik Vikas Sansthan–(Anant Shakti Capsule): The advertisement of Anant Shakti Capsule claims that it gives complete passion, liveliness and helps in enhancing sexual pleasure. The Advertisement is in Breach of the law as it violated The Drugs & Magic Remedies Act and contravened Chapters I.1 and III.4 of the ASCI Code

7. Positive Life Sciences Pvt Ltd.: The advertisement of Positive Life Sciences Pvt Ltd claims that it is No.1 in the World Classical Homeopathy as they have successfully treated 96 patients. Treatment of infertility and diabetes at ‘Positive Infertility and Diabetic Cell’. 100% No side effect. These claims by Positive Life Sciences were not substantiated. Also, specific claims such as infertility or diabetes treatment violate The Drugs & Magic Remedies Act. The advertisement contravened Chapters I.1 and III.4 of the ASCI Code.

8. Nukind Healthcare – (Nukind Nuface Cream): The advertisement of Nukind Nuface Cream claims to remove the dark spots of acne, pimples and dark circles in seven days. The visual transition of the skin colour in the advertisement was considered to be misleading by exaggeration. The advertisement contravened Chapters I.1 and I.4 of the ASCI Code.

9. Cheers Pain Management Hospital: Their advertisement claims “Pain treatment with just one injection” without any operation and anesthesia, cures pain caused by cancer/ the pain of waist/ neck/ knee /sciatica and numbness of hands and leg/ frozen shoulder/ trigeminal neuralgia can be cured with just a needle, were not substantiated and were misleading by ambiguity as there were several other interventions.

10. Sanskruti Holistic Center: The internet advertisement of Past Life Regression therapy claims that it can cure problems related to obesity, allergies, headaches, arthritis, diabetes, hyperactivity, suicidal tendencies, fears, phobias, addictions, child abuse, recurrent fever, depression, back pain/ body pain, schizophrenia. The above claims in advertisement by Sanskruti Holistic Center were not substantiated with clinical evidence.

11. L'Oreal India P Ltd. (Garnier Colour Naturals): The advertisement of Garnier Colour Naturals claims that it can provide hair nourishment for 8 weeks. Garnier Colour Naturals has olive oil cream based formula which nourishes hair for 8 weeks. The claim was inadequately substantiated. The advertisement contravened Chapter I.1 of the Code.

12. Vibes Healthcare Ltd: The advertisement of Vibes Healthcare Ltd claims that it can help you lose 2 - 3 inches from tummy, hips and thighs and up to 5kg weight, Lipo Laser in 14 days. The claim by Vibes Healthcare Ltd was not substantiated with clinical evidence. The advertisement contravened Chapter I.1 of the Code.

13. Positive Homeopathy: The website advertisement claims that Positive Homeopathy can cure chronic diseases that are not curable. The claims appear to be misleading.

14. Dr Patel's Anti-Aging Clinic– (Dr Patel’s Diabetes Kit): The advertisement of Dr Patel’s Diabetes Kit claims that it is the only medicine which completely relieves one from diabetes without any side effects. It has been used by thousands of people in America after 15 years of research. The advertisement is in breach of the law as it violated The Drugs & Magic Remedies Act. The advertisement contravened Chapters I.1 and III.4 of the Code.

15. Jammu Hospital: The advertisement claims to give freedom from obesity and sugar with 100% success rate. The advertisement is in Breach of the law as it violated The Drugs & Magic Remedies Act and contravened Chapters I.1 and III.4 of the Code.

16. KDK Vardaan–(TulsiVardaan): The advertisement of TulsiVardaan claims that the product is very beneficial for resistance power, heart diseases, skin diseases and cancer. It contravened Chapter I.1 of the ASCI Code.

17. Pooja Health Centre: The advertisement of the centre claims to reduce 5 to 7 kilos of weight in 28 days and 7 to 10 inches from hips and stomach.

18. Taneja Hospital: The advertisement claims that the hospital is successful in treating more than one lakh deaf people is in Breach of the law as it violated The Drugs & Magic Remedies Act.

19. Raj Hospital Test Tube Baby Centre: The advertisement of the centre claims of successfully treating the problem of infertility among couples is in Breach of the law as it violated The Drugs & Magic Remedies Act and contravened Chapters I.1 and III.4 of the ASCI Code.

20. KundanAyurvedicCentre–(KundanKidney Care Centre): The advertisement of the centre claims to be “No.1 Kidney Centre in alternative treatment. Say goodbye to dialysis.” were not substantiated.

21. Sunshine Pharmaceuticals – (SobarGynofe Syrup): The advertisement of SobarGynofe Syrup claims to provide complete solution for all women related problems such as irregularity of periods, leucorrhoea, waist pain, imbalance of hormones and problems during pregnancy and boosts energy and enthusiasm. These claims were not substantiated.

22. Mata Tirathdevi Ayurvedic Hospital: The advertisement of Mata Tirathdevi Ayurvedic Hospital claims to provide effective Ayurvedic treatment for Cancer, Aids, Hepatitis and anal diseases.

The effect of these medicines can be seen within one month and they also have medicines for the diseases like heart diseases, high and low blood pressure, bones, nerves, joints, arthritis - baay, sciatica, palsy - paralysis, chronic headache, migraine, eye diseases, all skin diseases, STDs of males - females, premature ejaculation, impotency, childlessness, bone fever, malaria, asthma, snofilia and obesity. The hospital also claims to give complete cure of piles without an injection and operation. The Advertisement is in Breach of the law as it violated The Drugs & Magic Remedies Act and contravened Chapters I.1 and III.4 of the ASCI Code.

23. Saint Life Care Private Ltd – (24 Carat Tulsi): The advertisement of 24 Carat Tulsi claims to reduce harmful effects of urea in fruits and vegetables. It is an anti-oxidant which is beneficial in chemotherapy. It is also beneficial for diabetic patients as tulsi increases insulin level, these claims were not substantiated.

24. Dr Paul's Multispecialty Clinic Private Ltd - The advertisement of Dr. Paul's Multispecialty Clinic claims to be No.1 clinic for hair, skin and cosmetic surgery of Eastern India. Dr. Paul claims to be ‘The Pioneer in Meso treatment’ was not substantiated by comparative data versus other clinics.

25. Sumaya Herbs (Madhumeha Vijay Capsules): The advertisement of Madhumeha Vijay Vati claims in producing sugar in complete quantity and helps in getting rid of diabetes. The advertisement is in Breach of the law as it violated The Drugs & Magic Remedies Act. The advertisement contravened Chapters I.1 and III.4 of the ASCI Code.

26. Dr Rekha's Skin and Slim Centre: The advertisement claims that the centre provides treatments that help you reduce 5 to 7 kgs in one month thereby giving a 100% success. The visual showing “the before and after effect” of treatment was considered to be misleading.

27. Herbal Life Nectar: The advertisement of Herbal Life Nectar claims that the product makes body energetic and fit. It further helps in improving physical and mental strength. The advertisement also states that Herbal life Nectar is a multi-beneficial product which provides nutrition to each part of body, improves digestion, increases sexual vigour, develops brain of a child, helps to overcome depression and irritation, detoxifies body naturally, improves immune system and gives extra glow to skin. Doctors are also shown to endorse the product and advise viewers to take the supplement in place of medicine. The product also helps in coping with depression and in endowing an attractive body. The Ad contravened Chapter I.1 of the ASCI Code as well as Advertising Code – 7 [5] under the Cable Television Network Rules, 1994.

28. Kerala Ayurvedic Healthcare: The advertisement of the centre claims to have developed special herbal oil for treatment of psoriasis. It even says that treatment is a better option than cure for the disease. Claims made in the advertisement were not substantiated with clinical data and proof of efficacy of the product.

29. Gulati Physiotherapy and Pain Relief Centre: The advertisement of the centre claims get rid of pain and disease within 5 minutes was not substantiated and was considered to be misleading by exaggeration.

30. Nigam Clinic: The advertisement of the clinic claims to dissolve and remove all kinds of stones from the body. Completely ayurvedic and safe medicine, no need for operation. The claims made in the Ad were not substantiated.

31. Hair Protection Hair Oil: The advertisement claims that the oil stops hair fall and early greying were not substantiated.

32. Piles Vijay Amrit: The advertisement of the product claims to provide a 100% permanent solution for piles. It also claims that the product helps in controlling bleeding and pain thereby giving permanent relief from piles. 100% ayurvedic medicine that gives guaranteed results the advertisement is in Breach of the law as it violated The Drugs & Cosmetics Rule 106.

33. Teleone Consumer Products P Ltd. (No Piles): The advertisement of the product claims that their product gives a permanent solution/cure for piles. The product is a 100 percent herbal medicine that gives guaranteed results. “No Piles means No Piles” was not substantiated.

34. Teleone Consumer Products P. Ltd. (Diaba Amrit): The advertisement claims that Diaba Amrit effectively treats diabetes without giving any side effects. The product says that it is completely capable in maintaining the sugar level and prevents diabetes in minimum time period. The claim “Diaba Amrit controls diabetes” was not substantiated.

35. Sky Brand India (Slim X Pro): The advertisement of the product claims that it can effectively reduce weight with their herbal product. The product does not only reduce body plumpness but also adds extra glow to the face and provides better digestion. It says that the product is 100 percent ayurvedic product, which not only only reduces fat, but also helps in maintaining the fitness of body without any diet and exercise. The Ad contravened Chapters I.1 and I.5 of the ASCI Code as well as Advertising Code – 7 [5] under the Cable Television Network Rules, 1994.

36. Godrej Consumer Products Ltd (Godrej Expert Rich Crème Hair Color): The advertisement of the product claims to be a ‘Best Ever Hair Color’ as it does not have ammonia. This claim is misleading by implication and omission that it is the best product and other products in the market have ammonia. Also, the TVC claim incorrectly imply that other products have ammonia and thus it disparages competitive products. The TVC contravened Chapters I.4 and IV.1 (e) of the Code.

37. Shree Dhanwantri Herbals (D- Fit Capsule): The advertisement of D-Fit capsule claims that it consists of Swarna, Basantkusumakarras, Shilajit, Gudmaar and Vijaysar. Out of which Gurmar and Vijaysar, helps in reducing the sugar level in the body. Claims in the Ad were not substantiated.

38. Zenvista Meditech Private Ltd – (V-Secret Gel): The advertisement of the gel claims that it revives the shape and tightness of the vagina which is often affected after motherhood and ageing. One can see results within 2 weeks of using the gel. The advertiser also claims that it is a Certified Ayurvedic Medicinal Cream. The visual showing the after effect of the treatment was misleading.

39. Jindal Healthcare - Thrill Power: The advertisement of Thrill Power claims to be an effective medicine for enhancing sexual powers, especially in men. The advertisement claims that the product is capable of maintaining healthy sexual arousal in men. The advertorial describes Thrill Power as an ‘ultimate supplement’, which is beneficial for men suffering from erectile dysfunction. It says the product is an ‘ayurvedic formula’ for natural sexual enhancement. The advertisement is in Breach of the law as it violated The Drugs & Magic Remedies Act.

40. Anti Addiction: The advertisement Anti Addiction claims that it is an effective medicine for treating addictions such as drugs, cigarette, and alcohol and tobacco. The advertiser further claims that Anti Addiction is a 100 percent ayurvedic medicine with no side effects and various health benefits. The product not only helps its user in becoming free from any type of addiction, but also helps in removing all toxins from the body thereby bringing positive changes in one’s life. The Ad contravened Chapter I.1 of the ASCI Code as well as Advertising Code – 7 [5] under the Cable Television Network Rules, 1994.

41. Tele 24 Hour (Figaslim): The advertisement of Figaslim claims to be an effective method of reducing weight. This product is 100 percent ayurvedic, which not only reduces fat, but also helps in maintaining body weight. The advertisement also claims that Figaslim is 100 percent more effective than the cardio weight machine, belts and 2000 percent safer than the weight of reduction surgeries. It further claims that the product helps in losing weight by improving the body’s metabolic rate, were not substantiated.

42. Japani Oil: The advertisement of the oil claims that it enhances sexual performance among men. The oil is 100 per cent herbal which is exclusively meant for sexual pleasure for men violated The Drugs & Magic Remedies Act.


43. Dr. Batra’s Homeopathy Clinic: The advertisement of the clinic claims of treating 45000 allergy patients with a success rate of 94 percent. Advanced scientific tools to detect the cause of allergy in 30 minutes and the diagnostic technology helps in giving accurate and reliable results, without the assistance of a laboratory. Authenticated by American Quality Assessors they give holistic 360 degree approach for treating allergic patients. Claims made in the Ad were not substantiated.

44. Shree Maruti Herbal – (Marutis D-Diabetes Powder): The advertisement of Marutis D-Diabetes Powder claims that it improves the process of utilizing glucose (Blood Sugar Management) and helps in increasing the flow of hormones. Patients consuming D-Diabetes Smart Powder are living a tension free healthy life. Claims in the Ad were not substantiated with adequate scientific and clinical data.


45. NirmalAyur Life Private Ltd (NirmalObamin Plus): The advertisement claims that it helps one lose weight up to 15kg without any side effects. It neither requires strict diet nor exercise, were not substantiated.


46. Dr Gupta Stone and Uterine Fibroid Clinic: The advertisement of the clinic claims they have been successful in treating stone and uterus problems without any operation and without any pain. They also claim to have successfully treated kidney stones, bladder stones, gall stones, hair loss, ovary tumour, baldness, dandruff and premature greying of hair.

47. RupamUbtan: The advertisement of the product claims that it provides permanent fairness was not substantiated.

48. Unani Medicine–(Mughal-E-Azam Cream): The advertisement of the cream claims to provide a new treatment for smallness, impotency, and premature ejaculation. It also claims that within 10 days the penis will become thick and longer by 1 to 2 inches. The Ad was in Breach of the law as it violated The Drugs & Magic Remedies Act.

49. Shree Dhanvantari Pharmacy – (SundariSudha): The advertisement of SundariSudha claims that the syrup comprises highly condensed mixture of herbs which are not present in any other syrup available in the market. The medicine also helps in getting rid of frequent miscarriages and avoids the problem of infertility. So, those girls who have attained the age of 14 will not have to face the problems due to hormonal changes. The advertisement violated The Drugs & Magic Remedies Act.

50. Enhance Aesthetic and Cosmetic Studio: The advertisement of the studio claims to cure Alopecia. They claim to provide hair related services by using stem cell therapy but visuals imply curing of baldness. The advertisement contravened Chapters I.1, I.4 and III.4 of the Code.

51. Jagat Pharma – (Isotine Eye Drops): The advertisement of the drops claim that they successfully treat cataract, near vision, kala pani, diabetic retinopathy, macular degeneration, retinitis piramentosa, colour blindness etc.

52. Minerals For All (Anderson’s Concentrated Mineral Drops): The advertisement claims to cure major diseases like arthritis, cancer and diabetes by using Concentrated Mineral Drops. It also claims to be a single remedy for all health related issues thereby giving a complete solution for ‘Healthy Glowing Skin’. (Read: Minerals For All, another MLM, offering single remedy for all diseases!


53. Yogi Herboclub (Slim Trim): The website advertisement of Slim Trim claims that it helps reduce excess fat and weight. It is a 100 percent natural herbal diet. The key ingredients in the product interact with the body's natural process of metabolism; prevent fat formation, cut fat in human body and keep the body slim-trim.

54. Direct Hair Implantation: The advertisement claims to give guaranteed results in hair implantation with no strips, scars or stitches, pain or discomfort. Giving superior hairline design and maximum density in one session, were not substantiated.

55. Shathayu Ayurveda: The advertisement of the product claims that it removes used hormones from the body by giving ayurveda treatment of ancient detoxification process that enables the growth of new hormones by the liver was not substantiated.

EDUCATION:

The CCC found following claims in print advertisements by 42 different advertisers were not substantiated and thus, violated ASCI Guidelines for Advertising of Educational Institutions and hence the complaints against these ads were UPHELD –

Accurate Academy: The advertisement of the academy claims that it gives 100 percent guarantees of passing otherwise they would refund the fees.

Mangalayatan University: The advertisement of the university claims to be ranked No.7 in northern India according to Chronicle B-School Survey 2014.

Popular Academy: The advertisement’s claims of 100 percent success assurance in IBPS/SBI /Co-Operative Bank, Bank Exams and PSC Coaching.

The Sagar School: The advertisement claims to receive International School Award in 2010 – 2013.

Krupanidhi College: The advertisement claims to be Asia's fastest growing private education institute by WCRC - Leaders - Asia Education as evaluated by KPMG.

Varun Study Centre: The advertisement of the centre claims that it is India's No.1 GK faculty under guidance of Appalanaidu Sir.

IMS Educational Society – (IMS-Noida): The advertisement claims to be ranked Top 22 B-school in North Region by The Week Magazine. Mail Today has ranked it as Top 11th Best B-School of Delhi NCR. It is also ranked as one of the Top 10 Best B-School for placement pan India by Business and Management Chronicle Magazine. It also claims to give 100% job placement.

Sharda Group of Institutions – Sharda University: The advertisement of the university makes claims of being awarded the rating of the best private university for four consecutive years.

Backspace Communications: The advertisement of the institute claims that it is a superior institute when compared with other institutes. This appears to be detrimental and defames other educational institutions of repute.

CL Educate Ltd.: The advertisement claims selection of 1003 out of 1637 in CLAT 2013 which was not substantiated.

Triveni Academy: The advertisement of Triveni Academy claims of 97.0% residential result in the CHSE Result 2014.

Vikash Group of Institutions: The advertisement of Vikash Group Of Institutions claims a 100% success with exceptional percentile in CBSE and CHSE +2.

ODM School of Human Excellence: The advertisement of ODM School of Human Excellence claims to give ‘100% Residential Result’.

Vedbyash Residential College: The advertisement of Vedbyash Residential College claims to give 100% success with real education.

Resonance Eduventures Pvt. Ltd.: The advertisement claims to have highest number of students qualified when compared with any Institute in India.

C V Raman School for IIT-JEE: The advertisement claims “Assured Success In +2 Board Exam & Engg/ Medi Entrance Exam”.

Footwear Design and Development Institute (FDDI): The advertisement claims that FDDI is ranked A+++ category. It claims that the institute is amongst the Top 10 Colleges in terms of infrastructure and placement. Further it says that it has 100% placement with leading corporates in India and abroad.

Indo Global Colleges: The advertisement claims the college is ranked No.3 in placements amongst all colleges in Punjab (PTU 2011) Official Ranking of PTU – Jalandhar.

KristuJayanti College: The advertisement claims that KristuJayanti College is one of the top colleges of India when surveyed by India Today in 2010, 11, 12 and 13. It further claims that it is ranked No.1 Best Emerging Commerce College in India, ranked No.32 among Best Arts College in India and ranked No.1 as Best Emerging Science College in India. In addition, the advertisement also claims to be ranked No.4 and No.9 College for Arts and Commerce streams respectively in Bangalore.

Complaints against advertisements of all educational institutes listed below were UPHELD because of unsubstantiated claims that they ‘provide 100% placement/AND/OR they claim to be the no.1 in their respective fields’:

KishorTripathis Classes, NIBMS Career Coaching Centre, PSNA College of Engineering and Technology, Adesh Institute of Technology’s Job Mania, Heritage Institute Hotel and Tourism, ARC Computer Education, American Institute of English Language, Mohandas College of Engineering and Technology, Ratnashila Institute of Paramedical Science, Meenakshi Group of Institute, Vikas Academy, Kollywood Academy, SRM University from the SRM Group of Institutes, National Academy of Event Management and Development, Gandhi Engineering College, Alpha College of Engineering and Technology, Aptech Ltd’s Arena Animation Academy, College of Fire Engineering and Safety Management, Jagannath Gupta Institute of Engineering and Technology, Jain University, Malabar College of Engineering and Technology, RIG Institute of Hospitality and Management, Gyan Ganga Group of Institutions’s Gyan Ganga Institute of Technology and Management, Shree KarniSewaSamiti Trust’s Shree Karni College.

FOOD and BEVERAGES:

The CCC concluded that the claims mentioned in these three advertisements were not substantiated. The advertisements contravened ASCI’s Code. The complaints were UPHELD.

1. Marico Ltd (Saffola Gold Oil): The advertisement of Saffola Gold Oil claims that it is not just an oil but has a scientific solution for every heart. Saffola Gold Oil sets a benchmark not with other oils but with the best advancements in heart care. Comparative data were misleading by implication.

2. Wipro Ltd. - Glucovita: The advertisement shows a small boy in his school uniform sitting on a park bench and teasing a dog who is tied to another bench. The dog unleashes itself from the bench and runs after the boy who flips a tablet of Glucovita into the air and catches it with his mouth and runs faster and leaves the dog far behind. This suggests a dangerous act. The CCC concluded that the visual of “a boy flipping the Glucovita Bolts in the air and catching it in his mouth”, shows a dangerous act which is likely to encourage minors to emulate such act in a manner which could cause harm or injury. The advertisement contravened Chapter III.2 (b) of the Code.


3. Mahashian Di Hatti Ltd (MDH Masale): The advertisement of MDH Masale shows two males riding motorbikes without helmet. The CCC viewed the TVC and concluded that the visual of “two males riding motorbikes without helmet” promotes unsafe practices. The advertisement contravened Chapter III.3 of the ASCI Code. The complaint was UPHELD.


CONSUMER DURABLES:

1. ORG Engitech Pvt Ltd (ORG Water Purifier): The advertisement of ORG Water Purifier claims that the presence of RO + UV + AAA + pH + ORP and healthy minerals helps in cleaning the acid waste of the body. The mineral content in water gives 3 times more hydration and provides resistance against acidosis diseases. The ORG purifier also helps in improving digestion and the taste of water. The CCC viewed the print advertisement and considered the advertiser’s response. The CCC concluded that the claims in the advertisement were not substantiated with proof of efficacy. The advertisement contravened Chapter I.1 of the Code. The complaint was UPHELD.


TELESHOPPING:

1. Tele Trade Shopping Sky Shop (SidhMaha Lakshmi Yantra): The advertisement claims of getting better finances and assets. YOU MEAN BETTER RETURNS ON INVESTMENTS? According to the Advertising Code – 7 [5], no advertising shall contain references which are likely to lead the public to infer that the product advertised or any of its ingredients has some special or miraculous or super-natural property or quality, which is difficult of being proved.. The CCC reviewed the relevant parts of the TVC. In the absence of comments from the advertiser, the CCC concluded that the claim, ‘SidhMaha Lakshmi Yantra is for attaining better finances and assets’, was not substantiated. The advertisement contravened Chapter I.1 of the ASCI Code as well as Advertising Code – 7 [5] under the Cable Television Network Rules, 1994. The complaint was UPHELD


FINANCE:

1. Investor Clinic: In the full page advertisement Investors Clinic offered SupertechRomano 2/3/4/ BHK premium flat located at Sector 118, Noida at Rs35 Lacs under 40%-60% payment plan whereas earlier price was Rs44 Lacs which was struck out by the advertiser. The complainant called at the mentioned number to find out that Rs35 Lacs price is for down payment plan and not 40-60% payment plan which is not in line with the advertisement. Second, Investors clinic informed the complainant about other charges of Rs7.5 Lacs which are not mentioned in the advertisement. In the absence of comments from the advertiser, the CCC concluded that the advertisement distorts facts and the claim, ‘Our price Rs. 35 Lacs, Pay 40% now and 60% on/near possession’, is misleading. The advertisement contravened Chapter I.4 of the Code. The complaint was UPHELD.


REAL ESTATE:

1. TVH Quadrant: The text of the advertisement reads as follows, ‘Pay 15% and watch your investment zoom up 130% ** in under 2 years’, ‘reliable industry estimates forecast that an investment of Rs65 lakh in a prime site in Adyar, will appreciate to Rs1.55 Cr in just 18 months. The complainant stated that by suggesting a 130% return, they wanted to sell flats at higher prices. The CCC viewed the print advertisement and considered the advertiser’s response. The CCC concluded that the claim, ‘Just pay 15% and watch your investment zoom up 130% ** in under 2 years’, was misleading, as one cannot assume or assure any future appreciation of real estate with certainty even if in the past the claimed appreciation rate has occurred. The advertisement contravened Chapter I.4 of the Code. The complaint was UPHELD.


TRAVEL:

1. Thomas Cook India Ltd: The advertisement of the travel company claimed to give special package to Philadelphia starting at Rs44,000 only. But when contacted for availing the offer, customers are given services for Dubai instead of Philadelphia on the advertised price. The CCC viewed the print advertisement and considered the advertiser’s response. The CCC concluded that the claim offer is misleading by ambiguity and omission of the fact that the airfare is not included. The advertisement contravened Chapter I.4 of the Code. The complaint was UPHELD.

FASHION AND LIFESTYLE:


1. Khazana Jewellers: The advertisement claims that Khazana Jewellers is the largest jewellery showroom of Vizianagaram. The CCC viewed the print advertisement and considered the advertiser’s response. The CCC concluded that there was no conclusive data provided by the advertiser to prove the claim, ‘Vizianagaram's largest jewellery showroom’. The advertisement contravened Chapter I.1 of the Code. The complaint was UPHELD.



2. Lux Industries Ltd (ONN Premium Inner): The advertisement shows Shah Rukh Khan riding a motorcycle without a helmet. Riding a two wheeler without a helmet is a punishable offense as per the central motor Vehicle Act section 129. Such commercials showing a celebrity like Shah Rukh Khan gives the wrong message to the masses. The CCC viewed the TVC and concluded that the visual of ‘Shah Rukh Khan riding a motorcycle without a helmet’, promotes an unsafe practice. The advertisement contravened Chapter III.3 of the ASCI Code. The complaint was UPHELD.

OTHERS:

1. ERD Infotech Pvt Ltd (ERD LED): The advertisement shows too many people on two wheelers without wearing helmets. As per Central Motor Vehicle Act, riding a two-wheeler without a helmet is a punishable offence. Such commercials promote unsafe practices. The CCC viewed the TVC and concluded that the visual of ‘people on two wheelers shown without helmets’ promotes unsafe practices.


The advertisement contravened Chapter III.3 of the ASCI Code. The complaint was UPHELD.


2. Delhi Metro Rail Corp Ltd: The advertisement claims that 95% of DMRC customers show courtesy to their fellow passengers, 95% of customers allow passengers to deboard first before entering into the train, 95% of our customers offer seats to senior citizens, women and other needy ones, more than 25,000 commuters purchase Smart Cards on a daily basis. It further claims that most of the tourists use Tourist Card of DMRC to visit tourist places in Delhi. In the absence of comments from the advertiser, the CCC concluded that the claims were not substantiated. The advertisement hoardings contravened Chapter I.1 of the Code. The complaint was UPHELD.


3. Amazon Seller Services Private Ltd: The advertisement claims to guarantees one day delivery.


The CCC viewed the TVC referred to by the complainant and considered the advertiser’s response. The CCC concluded that in the absence of a super/disclaimer, the TVC is misleading by omission. The advertisement contravened Chapter I.4 of the ASCI Code. The complaint was UPHELD.