F&O is a popular trading concept but usually the concept of Future and options is blurred in the minds of people and reporting the same for tax returns is a hassle concept even in the minds of many accounting expertise. The enlisted points will help you know all in detail about how to report Future and Options trading in tax returns. Go through the same and expand you knowledge depth.

• What is Future and Options (F&O) trading?

Future refers to a contract of buying or selling an entity or item in future at a price that is agreed upon today.

An option refers to the contract where one of the contracting parties has an option to execute or not to execute trade in future.

• Reporting F&O trading as business

When one opts for tax returns, F&O is reported as business. When you report the same as business you can always claim expenses that you have incurred. You must follow the under mentioned steps to report the same as business:

• Calculate your total income
• See if you lie on the profit side or on the loss side.
• Calculate all the expensed which means your rent, commissions and all your personal and business costs.
• Deduct the same from your income.
• The remaining income is regarded as the profit or the loss from F&O trading activity.

• Know what is ITR-4

Once you have earned business income, you must file Income Tax Return-4 which would demand your profit and loss sheet, balance sheet. If you have an issue over here you can always take the help of an expertise for the same.

• Do not run from reporting losses

Losses always carry tax benefits and reporting the same should be done mandatorily. Usually two types of business losses occur, namely speculative and non speculative losses. F&O loss falls under the category of non speculative loss. The loss can be adjusted from other sources of income except for the salary. In case your F&O loss remains unadjusted, it can carry forwarded for 8 years.

• Application of Tax Audit in F&O trading
  • In case of profit: The tax audit is applicable in case the turnover is greater than Rs. 1 crore or 8% more of the turnover, then only the income is taken into consideration and IOTR has to be filed. In this case maintaining book of accounts is not mandatory
  • In case of loss: The tax audit is applicable if loss is less than 8% or turnover exceeds Rs. 1 crore, than tax auditing can be done and in order to carry forward the process, maintain books of accounts as per norms is must.
• Maintaining books of accounts in F&O trading

Since F&O trading is considered as normal business income, the rules which are applicable to normal business are applicable here. The important rules for profit and loss are same as mentioned in the case of tax auditing. Keeping accounting records is otherwise mandatory for every business. You need to calculate the turnover and the positive and the negative sum you are carrying. Every business has a return filing ate and you must get your returns filed by the same and submit the tax audit report you have prepared.

Today the accountant is no longer confined to the traditional accounting activities like bookkeeping and preparing books of accounts. Today accounting services are beyond your imagination and extends its hands in all the domains be it payroll management or tax planning. Today every business sector sees the need of accounting services and you can be an effective an impressive accountant without really being an expert.

Usually when people hire an accountant what they look forward to is profit maximization and the queries related to the risks of investments. In simple terms they look forward to be on the safer side with profits and benefits weighting heavier. You can build lifelong relations with your clients by going beyond accounting without really being an expert in the under mentioned ways:

• Prepare the FAQs

If you have been in working in the domain for some time, you might be aware about the general set of questions clients always arise and you must be well prepared with at least the certain forms in an impressive format, be it text, audio or video. The time you save can be used to handle your clients better and moreover add quality to your work.

• Go Technical and make the best use of technical software products

In the virtual era you can just keep all your work in any cloud storage which will facilitate for you easy dealing with the client in multiple forms be it emailing your client, share documents and software etc. You can also make use of skype and other software to communicate with your clients. To quote in a nutshell, go virtual with your work.

• Do not leave your clients unanswered

What your client is going to ask you certainly has no boundaries however on the other hand it is true that you might not have answer to all the questions at once. But it is your duty to look into the matter and prepare the answer to the same within minimum time span as this would help your client to take valuable business decisions and moreover realize that you are really an asset he has found.

• Understand the market and other environmental factors

While you are working as an accountant and even beyond that you must not keep your knowledge and growth limited. Instead take time to study the market conditions, the growth being offered to the kind of industries you are working for and moreover what the customer demands from your client. In order to guide your client best you must also be aware about the working environment of the firm as the transition will happen only if the human resources are adaptable in nature. This is something which will help you stay ahead in game and turn the competition to your side.

• Be a trusted advisor for your client

You are not merely an accountant but also an advisor whom the client will seek at every point of time. You can take time but you should be ready with the piece of advice or the resource your client currently requires. The advices you render to your customer will be an outcome of experience, it might not be something happening today but will certainly happen over years. You are going to have a major extent of control of your client’s business, be ready for that.

Accounting and Bookkeeping are the two business aspects that helps to keep a measure of financial activities of business such that the performance of the business is always on the rise. In order to maintain the accounts and other legal works aptly, people usually prefer opting for an accountant or even outsourcing their accounting and bookkeeping. This helps to regulate the blood of business, money in an error free fashion.

The bookkeeping and accounting are the two sides of the coins that make the other smooth functionally. They are not limited concepts but have broader outlook, the most important facets in accounting and bookkeeping are:

Know Bookkeeping – Bookkeeping is like a sub section of accounting which actually implies collecting and organizing all your financial information so that it can be used for business growth. The art of bookkeeping is performed by the professionals who would help you to do much more in business than you can imagine. It helps one get tax returns, prepare legal statements, business auditing and moreover deciding that which way is actually the business going. Bookkeeping is the initial step of every accounting system.

Financial analysis and management – Finance is the most important aspect of any business and financial analysis and management is the accounting procedure that must be executed at regular intervals of time. Bookkeeping and accounting helps perform this easily. In case your finance is being delayed or it is not being managed as per the predefined credentials, accounting can help you realize the breakpoints and moreover work on it.

Plan your business – Business is one of the riskiest occupations that can never go unplanned. Bookkeeping and accounting performed by professionals help every businessman plan his activities in a timely fashion, which helps to achieve better results. The accountings statements include profit and loss statement, balance sheet which helps monitor overall profitability.

Bookkeeping and accounting should aim at profit enhancement – Accounting services are diverse in nature, but the center facet of every business activity has always been profit enhancement. The organized records and subsidiary book of accounts would certainly help you climb up the ladder of profit enhancement.

Save Taxes – Tax planning can save you money that you would not have thought otherwise. Tax panning comes with the right bookkeeping as it involves recording your financial matters in a smart way that usually known only to the expert accounting service providers. Summarizing your accounts efficiently can help you save taxes considerably.

Saving taxes involves other accounting activities like minimizing the number of documented errors and investing more time in tax planning.

Accounting is the elder brother – Accounting is an expert based job which cannot be handled single handedly, unless and until one is experienced enough in the domain. Once the bookkeeping is done, the overall business aspects are taken into consideration in order to reach the final steps. Handling all your complex reports and money related issue becomes simpler with the right accounting choice. Bookkeeping forms a section of accounting, whereas accounting ranges all the way from arranging finance to profit enhancement.

To summarize, bookkeeping and accounting are the two activities that go hand in hand. Better bookkeeping always means better accounting services, if the base of any activity is laid strong the results will certainly be better. Same is the scenario for bookkeeping and accounting.

An accountant is an expertise who will provide you assistance to manage your business accounts and maximize profit to every bit. They can prove out to be gold gem for your business as they can help you get the maximum of tax returns which otherwise would not have been possible. All you have to do is choose the right accountant who would cater to your business needs and work to provide you the maximum business profit as if working for his own.

No matter if your business is small scale or large scale; you must choose an accountant to get the maximum tax returns. An accounting professional can help you for your tax return in the under mentioned ways:

• The accountants help you minimize the deductions in your tax returns

Accounting professionals are expertise who knows ways to minimize the deduction in tax returns and minimizing deductions implies that you can get maximum profits with you. The deductions can be minimized in form of MIDs which is also known as Missing Information and Documents. Accountants are return experts who would make every possible effort to cut the deductions in tax returns. MID can also help to maximize tax credits which means taking returns to a new level.

• Eliminate the errors in tax returns

Many times in registering the documents or bookkeeping there is a scope that there are errors in tax returns. Accountants take time to check these documents in depth so that each of your tax return documents is prepared error free. Eliminating of errors and mistakes would help you maximize tax returns and ultimately profit.

• Prevent audits from occurring

An accountant reduced the chances of audit triggering which otherwise is difficult to perform. An accountant expert in his domain would make an effort to increment your tax return every year and not try to keep it same. An expert accountant would create timely audit trails in order to maintain your records in an ordered fashion.

• Accountants are experts who would help you plan and strategize tax returns

If you hire an accountant at the beginning of the session it would certainly help you be with maximum profits throughout the year. He would be the one who would take all the important tax decisions and would even provide you beneficial advices at every step. You can take your business to new heights with expertise accountant’s help.

• The key areas that can fetch you Tax returns

The tax returns are not confined one single factor rather a number of areas can be summed to get maximum returns. An accountant has knowledge about these areas and would help you get returns from these areas. Some of the major tax return areas on which an accountant works is Charity annual returns, corporate tax returns, IT professional’s tax returns, investment income returns, commission earners tax returns etc. An accountant would cater to all these areas and get all the benefits for you.

Tax returns should not be an ignored section instead should be taken with proper care and maximizing tax saving plan can help you perform a lot better in your business and maximize your profit to every bit. An expert accountant is aware of all the tax saving plans and choosing an accountant would be a wise decision.

Managing accounts and tax is a business aspect that helps determine overall profitability of any firm. There would be high and low times out there when it would not be easy to go for you with all the accounting issues. The accounting professionals based on Milton, Oakville will help you find a complete solution to all the tax and accounting issues you are going through at every step of your business activity. If you seek the expertise help, it would certainly prove out to be fruitful at your part as your accounts will be managed well and solutions to all your problems will be provided at its best and earliest.

You need not worry anymore about your accounting and tax problems as H&T Accounting services cater to the following problematic areas:

• Arrange for business finances

If you look forward to launch your startup and have an innovative approach but are yet not done with the financial arrangement then H&T Accounting services can help you arrange business finances. Even if you want to expand your business we can help you provide a solution with the same. We follow a two step approach in the same. We would prepare a business plan and would also help you present this business plan to the lenders who can help you arrange finances.

• Plan taxes at its best

Tax Evasion is never considered as tax planning. All the tax related issues you face can be solved by our accounting experts who have been providing assistance in the same for years. We would help you minimize or cut down the errors in tax planning you have been committing for years and maximize the plans that would help you save considerably. There are different tax saving plans for all the places and we will help you achieve the same.

• Find the solution to all your tax return problems

There are numerous areas in business which generally people do not know about tax returns. We would help you identify those areas which include charity tax returns, estate planning and trust returns, investment income returns, IT professionals’ tax returns etc. Planning tax returns is never considered as tax evasion and we would make the best efforts to grant you with best benefits.

• Manage your accounts in an error free fashion

Bookkeeping is an important task that is done by every agency be it small or large. Managing different accounts of books is a tedious task and requires work of accuracy. We allow bookkeeping to our customers as per their convenience based upon the location and type of service they want. Our accounting professionals perform bookkeeping in such a way that tax saving becomes easier at later stages.

• Maximize the profit

Profit enhancement or earning maximum profit is what every organization aims at. Profit can be maximized only if the basis of accounting is strong in any organization. We are also glad to help you in developing a proper business plan as well as proper marketing strategies such that you can conveniently cut off the extra costs you have been investing and maximize your profits to every bit.

Any accounting problem that has been bothering you for a while can now be solved with our accounting experts.

Every country has tax as a source of revenue, which should be paid by every citizen so that the respective government can fulfill its duties and work accordingly. Every citizen pays tax according to his or her income source and amount. There are provisions out there issued by every government which leads to reduction of taxes in case of exceptional circumstances. But, still people all over the world have found out ways for tax avoidance, which is an unacceptable thing. Tax helps the true rights and benefits to reach the common mass; however avoiding tax payment is like making yourself devoid of all these benefits.

Avoiding paying the rightful tax is something that can cause you penalties. You would be more willing to pay the right amount of tax you owe to the government, if you go through following notable points:

• Paying tax is not a burden

Tax is not an external burden on you, but instead it is an obligation rather a duty that you must follow willingly. There have been cases out there when many richer and the bigger firms have avoided tax payment and all of this have come out in an adverse unexpected fashion. Ultimately, this not only led to heavy payment of penalties but also led to closing down of such firms, which led the owners to go into heavy losses. If you would take paying tax is a burden, you will always look for refuge which can take you into the darker zone.

• A duty to pay back

No matter if you run any organization at your town or a large scale business, you have some duty towards the country you reside in. You have a part devoted of your income to this country because you use the resources government provides you. In order to keep the healthy flow of your business going, you should not avoid paying taxes as it can turn your income into a total negative aspect. As you have duty towards your family, similarly paying tax is a duty towards your country.

• You drown yourself into bigger problems

Avoiding paying taxes can take you into a bigger penalty section which can even turn out that you have to pay additional costs in case the government finds out. This would not only cause a monetary difficult but can also defame you. If any certain issues arise in the courts you are also liable to pay for the lawyer as well as the overhead caused in all such cases. In spite of paying all these penalties, every citizen must consider this as his rightful duty to pay the entire valid tax amount within time.

Keeping in mind all the penalties or the adverse effects you can go through, one must never adopt for tax avoidance illegally as it would only worsen the situation and instead of saving your valuable resources, chances persist that you will drown all these resources forever. Paying taxes on time would also make your firm a recognized one in the area.

No matter which business type or what scale of business, you head you need essential support of people throughout who would help in the evolution and development of your business. In order to make your business grow every day, you have to deal with numerous financial matters and vendors and to make all these tiny matters work accordingly, you unquestionably need an accountant for your business at every step. An accountant is someone who would handle way more than your accounts and taxes. An accountant is one of the pillars, who would determine the overall strength of your business.
The under mentioned points would certainly prove that you need an accountant for your business. You must go through following points in case you are confused whether you should hire an accountant or not:

• Dealing with the finances
  Financial management is an important aspect of consideration, in case you have a growing business, management of finances with time can become difficult and discrepancies in such matters should not be allowed. In order to keep track of all the associated investors, shareholders, debtors, creditors and other financially associated entities you must hire an accountant.
• Legal matters and formalities
  An accountant has a major role to play in legal matters. He is the one who is going to guide you about the company’s legal structure and would help you choose most appropriate one. He is the one who has gained professional training in the one and his expertise can help deal with legal matters in a better and safer fashion.
• The governmental matters
  While heading a business, giving thought to the rules and regulations of any company should be done in a proper fashion. The governmental matters include the tax payment, calculating the tax returns etc. All the related paperwork is done by an accountant in an orderly fashion, which allows healthy flow of work in your office. Apart from this the paperwork serves as a proof in the court of law for future.
• Timely Business auditing
  Everyone dreams of a growing and a flourishing business, but coordinating the different modules of business in the growing stage is something that demands attention. The time ley business auditing is an important function performed by an accountant as he helps to conclude which business areas are providing more profit, which specific areas demand attention what is the current investment budget of the firm and moreover what is the net profitability state. The timely business auditing helps to make a business healthy.
• Overall development
  Hiring an accountant would provide an all-round development to your firm. The financial matters of your firm will lie in the hands of expertise and you can make yourself free of the tedious task of dealing with all the financial transactions yourself. If you own a small scale business, an accountant would help you understand the true financial position of your business and can help you climb the steps of growth.

Hiring an accountant is not what you should think over, instead you should invest time to think over how you can hire the appropriate accountant for your business. An accountant would also help to lower the main stream business stress and lay focus on other important business matters that solely demands your attention and perspective.

Even if you are an entrepreneur leading a small or a medium scale industry and are not very well with the accounting services, the technological era has made it possible for you to manage and maintain your business really well with online accounting services. Accounting services are the blood life of any business enterprise and are required to keep it going in a timely and developing fashion.

We provide you all the good reasons which will persuade you that online accounting services are perfect for small as well as medium sized business:

• Home to al accounting services

Accounting services are not merely limited to record keeping, in this ever growing era of business, accounting services involve book keeping, creating ledgers, final book of accounts, calculating tax and every other minute detail. Online accounting services simply means handing your all accounting details at one central place.

• Reduce the extra employee wages you have to pay

A small and medium scale business is the one which is currently developing and every step of investment must be taken with utmost care in the same. Online accounting services helps you to cut off the costs that you would use to pay the employees you have hired for maintaining accounting services. Saving money is a great aspect in business and using online accounting services is a major step in doing so.

• Let the experts do it

People who work for online accounting services are the ones who are solely expertise in the same domain and have been doing the same work for other companies too. They handle your work really well and moreover the chances of discrepancies you have in same are possibly very less than compared to the ones you have hired for your small or medium scale business who are still growing.

• Cut off the additional costs

‘Save!’ is something that is required to let a healthy business going, especially if a business is a small scale or a medium scale. By online accounting services you will be able to cut off the installation costs of the software and moreover the servers that you will have to maintain with loads of information. Also protecting the same from theft and data failure involves a great deal of costs. It is the time to get rid of all those extra costs you have been paying.

• Get timely work done

When you are grooming your small or medium scaled business, you need to save an additional thin and that is your time. Choosing online accounting services means you will be client for someone and they would make every possible effort to deliver your work on time so that they can reap the benefit of serving you in future too

• A good start leads to a good tour

Even if you have started with your new business or are in the developing stage of your small or medium scale business, you must take steps that prove out to be beneficial for you in the later stages of development. Online accounting services would help you manage your accounting services efficiently such that your clients trust you with the matter and you provide them satisfactory results at the front end and letting and online accountings service work for you at the back end.

The business industries today has increased manifold and technology has played its part well in bridging the gap between all the odds and the evens. No matter, what a business deals in, every firm has an important job to do, maintaining its accounts. However, the trend today favors ‘Outsourcing the Accounting Services’. The advent of digital market has brought the world closer. Outsourcing the Accounting services has taken the industries to the next stage of development.

The expert Accountants can work on your Accounts, adding a backbone to your business, to compete in the day-to-day evolving industries. Outsourcing bring accounting services at your doorstep.

You will agree that Outsourcing Accounting Services is the need of the hour once you go through Top 7 benefits:

• Outsourcing keeps you safe in the hands of experts: The outsourcing team is formed by statisticians, chartered accountants and other business experts. The experience of dealing with customers and their requirements, leave your accounts safe in the hand of accountants. Once you outsource your Accounting services, it is like a burden off your head.

• Cut off the cost: Money is the lifeblood of any business. Using it wisely to enhance the productivity, determines the strength of business. Outsourcing helps you cut off the cost to a great extent as you do not have to hire employees at your organization. This involves eliminating their wage and other allowances being paid to them.

• Lighten the burden of risk: Once you outsource your accounting services, you shed load off your shoulders. The risk involved in dealing with accounts turn out to be negligible as the outsourcing firm has both experience and expertise at their pool. The risk situations are pre determined and they are responsible for the work.

• Focus on one core process: A business environment is composed of numerous departments; laying focus on every team becomes difficult as the business grows. Outsourcing team involves a focused staff, whose one central job is to focus on the core function. The team is generally arranged at levels, which re-check and deal with your Accounting services.

• Versatility: Accounting services is not a one process job. It involves inventory management, payroll management, tax details and the list goes on. Outsourcing the Accounting services provides you all these jobs done under one roof. This saves the time and money of any organization. In growing areas like Milton and Oakville, outsourcing by the smaller organizations at initial stage has led to increase in productivity at next stages.

• Invest your valuable time: Outsourcing helps you save your time. The time which was initially being invested in dealing with accounts is now shifted to accountant experts. You have now the vacant slot which can be invested to enhance other weak points of your business. No matter if the business is a sapling or a tree, time management is must.

• Ensure security, privacy and confidentiality:  The organization dealing with outsourced accounting services, keeps in mind that business data is not shared with any outside agency, regular backups are maintained in case any failure occurs. The growing digital world has proved out to be a boon to add to the accounting services.

Well, if dealing with you accounts has given you some form of anxiety in the recent days, the best way to deal with it is to ‘Outsource your accounting services.’

There are two terms that a tax payer in Canada comes across every time, the first one is tax credits and the second one is tax deductions. For a normal person the two terms may mean similar, but there essentially mean different.

Tax deductions work on the overall taxable income and reduce it, whereas tax credits reduces the amount of tax that you have to pay. To enable tax payers to understand these terms clearly these two terms have been put in Federal Credit, Deductions and Province specific credit.

Most of the tax returns in Mississauga that are related to children are available only for those who are less than 18 years of age. For other dependents, the income tax credits have been put under dependent tax credits. These credits should be used in a proper manner so you can get maximum tax returns in Oakville. It is best to contact a tax consultant in order to get the maximum tax returns.

Different Options available in Tax Credits

Tax deductions can be used by any person who is a permanent resident or a citizen of Canada. They can claim for tax returns in Oakville provided they fulfill the eligibility requirement. In case a person does not have enough tax to use these deductions, than they can be carried forward and can be utilized in the coming years.

One of the most common types of deductions available to people who pay tax and are below 71 years of age is RRSP. Depending on the limit that is given on the notice of assessment, a tax payer can use the maximum deduction through RRSP. This deduction can be carried forward and used in later years. Many taxpayers contribute to these tax returns every year and use it when maximum benefit is provided by them.

Annual union, professional or similar taxes are related to the employment of a person. They can be used according to the amount that is given on T4 slip. This deduction is not beneficial to a person who does not have any professional or union income.

Tax Credit for Taking Care of Your Child

In case you have kept a caregiver to look after your child when you are away at work then you are eligible for child care expense deductions. However, there is a restriction on the amount of deduction that can be earned on this clause which is a maximum of two-third of the total income.

This deduction is calculated automatically when a tax payers enters the numbers. 100% tax return in Oakville is not available in this clause. You need get in touch with your tax consultant on how you can categorize each of these deductions.

There are various other tax returns in Mississauga that are available. Your personal circumstances and your overall payable tax determine the amount of tax credit that can be had. A complete detail can be had from a local tax consultant in your area.