Business Income & Expense Worksheet: Fill & Download for Free

India’s Central Board of Direct Taxes (CBDT) divides trading taxes into four distinct categories as follows.Long term capital gains, Short term capital gains, Speculative business income, Non-speculative business income.1 long term capital gains- If you own a stock for more than a year (365 days), any gains you make from buying and selling it will be considered a long-term capital gain. Which is tax-free under section 10 (38) of the Income Tax Act of 1961. This means you'll be able to retain all of your profits. Having said that the transactions must be carried out through a recognized exchange where Security Transaction Tax (STT) is paid.2 Short term capital gains- You will be charged a 15% tax if you keep your stock for more than one day but less than 365 days. This is attributable to the fact that all trade between these time frames would be listed as short-term gains.3 Speculative business income- This is a concern around intraday trading. A day trade is any transaction in which you buy and sell a security on the same trading day. Gains from such transaction would be classified as speculative business income. Any such gains will be added to your other taxes, according to Section 43 (5) of the Income Tax Act. This means you will be charged according to the overall income slab. As a result, this is a progressive tax, and the cumulative amount of your obligations is determined by the total income at the end of the fiscal year.4 Non-speculative business income- The tax rate on futures and options trading in India is included in this category. In comparison to other instruments, both are treated differently. Any profit earned from trading on recognised exchanges would be classified as non-speculative business profit. This means that your earnings will be added to your total income, and you will be taxed based on your tax slab.

Get a job if you need money. Start a business if you want more money.If you’re broke and have bills to pay, you need an income right now. Starting a business is just about the worst thing you can do, because you have to live off of your proceeds from day one - which makes it difficult, if not impossible, to invest those proceeds into growing the business.Ideally I don’t recommend starting a business until you have 6–12 months worth of living expenses in your savings account. That way you can reinvest all of your business income into marketing and growth without having to draw from it to pay yourself.Get a job, get stable, start saving, and then start a business when you’re able to put 100% into it without having to live off of the business income.

If you’re talking about corporate income tax, yes.The most profitable corporations in the US typically pay no corporate income tax on their profit. Often, they pay negative tax; that is, the IRS gives them money.Some people say that’s no big deal because their employees pay tax and they pay property tax. This is also true of small businesses, and yet small businesses are still expected to pay Federal taxes on their profits; only gigantic companies pay no or negative tax.If you own a company that makes $100,000 in corporate profit, you will pay tax on that profit. If you make $11,000,000,000 in corporate profit, you will pay no tax on that profit.When I owned my consulting company in Florida, I paid more Federal tax on my business income than Microsoft or General Electric did. It surprises me how many people are totally okay with that.