Are You Covered Under Tax Audit

[jain.er]

@Nikhil

I have a turnover of just 10,000 in last year and I am in 20% tax bracket. What should I do as I am making loss in those F&O trades of 10K.

Should I file return in Form 4 ans risk furrther scrutiny of just avoid and fill regular Form 2 rerturn.

 

[canikhil]

@Nikhil

I have a turnover of just 10,000 in last year and I am in 20% tax bracket. What should I do as I am making loss in those F&O trades of 10K.

Should I file return in Form 4 ans risk furrther scrutiny of just avoid and fill regular Form 2 rerturn.

If you have just 10000 as turnover, then I would rather advise that you file ITR4s under presumptive taxation. 8% profit stands at Rs 800 in your case and tax thereon at Rs 160! so why do false reporting. File ITR4S.

 

[newuser_RK]

If you have just 10000 as turnover, then I would rather advise that you file ITR4s under presumptive taxation. 8% profit stands at Rs 800 in your case and tax thereon at Rs 160! so why do false reporting. File ITR4S.

Nikhil sir I am not worried about 160 but someone told me probability of getting a scrutiny notice becomes higher if you file under 4s and that too for just 160 tax.

 

[narayanaal]

Hi canikhil
Please help me in filing my tax returns
Salary income 700000 TDS 56235;
Trading Profit + 16436 Turnover 171260 Charges 867 in Equities;
Trading loss - 41880 Turnover 96770 Charges 32841 in Commodities
I don't want to carry forward my losses.can i skip Auditing by paying tax of 8% on turnover...what are all the forms to be submitted along with ITR4...Thank you

 

[canikhil]

Nikhil sir I am not worried about 160 but someone told me probability of getting a scrutiny notice becomes higher if you file under 4s and that too for just 160 tax.

you dont have to worry about someone. Income-tax department doesn't have the time and resources to go after Rs 10000 turnover...I would reiterate that ITR4s should be filed in your case.

 

[canikhil]

Hi canikhil
Please help me in filing my tax returns
Salary income 700000 TDS 56235;
Trading Profit + 16436 Turnover 171260 Charges 867 in Equities;
Trading loss - 41880 Turnover 96770 Charges 32841 in Commodities
I don't want to carry forward my losses.can i skip Auditing by paying tax of 8% on turnover...what are all the forms to be submitted along with ITR4...Thank you

If you wanna pay tax on 8% of turnover, the file ITR4s. no forms to be submitted along the ITR.

 

[Smart_trade]

We have to file the IT return in Form ITR 4 and I understand from my CA that Govt has still not notified ITR 4 form. So the last date for filing the return may be extended from 31 st Aug to 30 Sept most likely.

Smart_trade

 

[canikhil]

We have to file the IT return in Form ITR 4 and I understand from my CA that Govt has still not notified ITR 4 form. So the last date for filing the return may be extended from 31 st Aug to 30 Sept most likely.

Smart_trade

the way it happened last year, it may be extended much further...last year they extended due date for audits to 30th November

 

[fish]

Sir,I fall under Case 1-

1)I traded F&O in year FY 2013-14 and my turnover as per Zerodha report is-

FY 2013-2014 (AY 2014-15)
My F&O gross profit was -2200rs
Future turnover was -11900rs

Bank FD=7lacs So, Interest I received is Rs 59500rs.
=Income Below 2 Lacs


2)Same Turnover was for FY 2014-15,
FY 2014-2015(AY 2015-16)
My F&O gross profit was -8500rs
Future turnover was -12300rs

Bank FD=8lacs So, Interest I received is Rs 72000rs.
=Income Below 2 Lacs

Nikhil Sir,Few Queries here, please do reply in your free time-
1) For Bank FD I provided 15G form. Is it a good practice of providing 15G as I am doing F&O trading(not regular though)?

2) I don’t have any other income source,Do I need to file a return as the income is below 2 Lacs?

3) Will IT dept trouble me in future if I make a very good money from trading next year and they will ask for AY 2013-2014 return,AY 2014-15 return, AY 2015-2016 return?

 

[canikhil]

Sir,I fall under Case 1-

1)I traded F&O in year FY 2013-14 and my turnover as per Zerodha report is-

FY 2013-2014 (AY 2014-15)
My F&O gross profit was -2200rs
Future turnover was -11900rs

Bank FD=7lacs So, Interest I received is Rs 59500rs.
=Income Below 2 Lacs


2)Same Turnover was for FY 2014-15,
FY 2014-2015(AY 2015-16)
My F&O gross profit was -8500rs
Future turnover was -12300rs

Bank FD=8lacs So, Interest I received is Rs 72000rs.
=Income Below 2 Lacs

Nikhil Sir,Few Queries here, please do reply in your free time-
1) For Bank FD I provided 15G form. Is it a good practice of providing 15G as I am doing F&O trading(not regular though)?

2) I don’t have any other income source,Do I need to file a return as the income is below 2 Lacs?

3) Will IT dept trouble me in future if I make a very good money from trading next year and they will ask for AY 2013-2014 return,AY 2014-15 return, AY 2015-2016 return?

1. If you are not making any taxable income, then issuing 15G should not be a problem.

2. there is no requirement for filing the return. However, it is a good practice to regularly file your return. Given that you do F&O trading, there is a good chance that income tax may issue you a non-statutory compliance notice to check on the reasons for non filing of the return

3. Third issue is something you should not worry about. There is no link between different tax years and in any case you can easily prove whether you earned a profit or loss in any given year

regards