Are You Covered Under Tax Audit

[Kabira 21]

Nikhil Bhai,this year I am in loss trading f&o and I dont want to carry forward it.(my choice)
My only income this year is few FD's running from few years.I dont fall under any tax liability or tax slab.So is it ok not to file return at all?

now assume I remain a looser for next 2-3year and earning only FD interest,will ITO trouble me for not filing a return?

 

[Kabira 21]

Income below Inr. 2.5L for current FY need not audit but if you intend to carry forward your losses to next FY and get relief you should consult CA.

audit or no audit is very grey area,I hate Indian Income Tax department where they dont have proper guideline :annoyed:

one of my friends got a notice from ITO.
His case was like this-
He filed ITR4 from CA,income showed just 3L,after deduction it was zero.
but he got a defective return notice saying upload P&L statement,Balance sheet.CA replied to the notice that no P&L,Balance sheet required as per 44AD of this pan holder.
after 5 months,ITR didnt get proceed,he got notice from AO to meet.
Ab bechara chakkar laga raha hai

Strange case naa?

 

[canikhil]

Nikhil Bhai,this year I am in loss trading f&o and I dont want to carry forward it.(my choice)
My only income this year is few FD's running from few years.I dont fall under any tax liability or tax slab.So is it ok not to file return at all?

now assume I remain a looser for next 2-3year and earning only FD interest,will ITO trouble me for not filing a return?

You are right in your position. But income tax will anyway send you notice later on asking you reasons why you have not filed the return. Why do they do so - because you PAN flags up in the STT report from stock exchanges.

 

[canikhil]

audit or no audit is very grey area,I hate Indian Income Tax department where they dont have proper guideline :annoyed:

one of my friends got a notice from ITO.
His case was like this-
He filed ITR4 from CA,income showed just 3L,after deduction it was zero.
but he got a defective return notice saying upload P&L statement,Balance sheet.CA replied to the notice that no P&L,Balance sheet required as per 44AD of this pan holder.
after 5 months,ITR didnt get proceed,he got notice from AO to meet.
Ab bechara chakkar laga raha hai

Strange case naa?

It must be a case of wrong filing. If it is a no-account case, then ITR-4 should be to reflect that. If you make an error, then it needs to be rectified.

 

[TraderRavi]

Nikhil Bhai,this year I am in loss trading f&o and I dont want to carry forward it.(my choice)
My only income this year is few FD's running from few years.I dont fall under any tax liability or tax slab.So is it ok not to file return at all?

now assume I remain a looser for next 2-3year and earning only FD interest,will ITO trouble me for not filing a return?

All guys who are into share trading getting notices from IT deptt
now there are two types
1) those who filed return for salary etc but did not show share trading (due to only losses)
2) those who did not file return due to income below taxable limit

in both cases one has to submit bank passbook statement of the financial year, profit & loss statement and ledger photocopies. and try to satisfy the ITO about your case

 

[Kabira 21]

It must be a case of wrong filing. If it is a no-account case, then ITR-4 should be to reflect that. If you make an error, then it needs to be rectified.

yes,it was filed under no-account case under 44AD section.

 

[Kabira 21]

in both cases one has to submit bank passbook statement of the financial year, profit & loss statement and ledger photocopies. and try to satisfy the ITO about your case

5000rs me satisfy ho rahe hai :lol:

 

[TraderRavi]

5000rs me satisfy ho rahe hai :lol:

sasta hi hai , samjho ek put bekar ho gaya :lol::lol:

 

[Kabira 21]

You are right in your position. But income tax will anyway send you notice later on asking you reasons why you have not filed the return. Why do they do so - because you PAN flags up in the STT report from stock exchanges.

so in my case,I will just file a return showing only FD interest under no account case,44AD section,is my understanding correct?

 

[elwavetrader]

What is a no account case. Please elaborate.
Thanks