FAQs

The Income Tax Act is the legislation that governs how much income tax people have to pay on their earnings. The Income Tax Act defines what income is taxable and what expenses are deductible. It also outlines the rules for deductions, exemptions, credits, and other tax-saving measures.

Any profit you make on the sale of a stock is generally taxable at 0%, 15%, or 20% if you held the stock for more than a year, or at your regular tax rate if you owned the stock for less than a year. Furthermore, any profits received from a stock are normally taxed.

According to the Chambers 20th Century Dictionary, "stock-in-trade" refers to all of the things that a shopkeeper has for sale... As a result, the definition of the term "stock-in-trade" should be interpreted as in common usage. Ahmedabad's Income Tax Appellate Tribunal. Hindustan Sewing and Weaving is a company that specialises in sewing and weaving.

The filing of federal taxes is not mandatory for everyone. The primary determinants of whether or not you must file are your tax filing status and your income. You may wish to file even if you don't have to since you may be entitled for a tax refund.

Use the mark-to-market method of accounting. At the end of each tax year, this is completed. The advantage is that net trading losses can be subtracted from other income indefinitely. Unlike taxpayers who are categorised as investors, you are not limited to $3,000 in excess of capital gains.

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