Fire your tax related queries and i would get it solved!!!

[arora]

Hi !!

I have received a tax notice under section 143(2). It says

This is for your kind information that the return of income for Assessment Year 2015-16 filed vide

ack. no. ***************** on 05/08/2015 has been selected for Scrutiny. Following issues have

been identified for examination:

i. Derivative (futures) transaction

ii. Securities Transaction

2.) In view of the above, we would like to give you an opportunity to produce, or cause to be

produced, any evidence which you feel is necessary in support of the said return of income on

22/08/2016 at 04:30 PM in the office of the undersigned.

But During Financial year 2014-2015. I have not made any profit from trading. Total Loss was -7000 for annual year.

I have filled ITR4 in 2014-2015 with gross income 309167 . I have not shown any loss made in trading.

Please tell me what i should do. I need to reply them by 22/08/2016.

What i am thinking to do is?

Just reply to email which i have received and explain them that there was no profit from trading during that financial year 2014-2015. and as a supporting document i will attach TAX P/L of 2014-2015 provided by zerodha in Q dot zerodha dot com .

Is this right way to approach ?

Waiting for advise

Thanks

 

[vjvijay88]

my dad is retired railway employee from 2010 he is getting pension around 8k pre month and he deposited around 5L in canara bank for 3 years, after 3 years maturity, 7% interest he recently that deposited year going to end , so he asked to renew but that bank has hold tax of rs.30K from my dad account ,my dad age is 75 he is senior citizen he asked details about tax form that manager, but he is asking bribe for that tax amount to be not shown, kindly tell me if any deposited amt by senior citizen should pay tax and if so how much and other details too

 

[nac]

my dad is retired railway employee from 2010 he is getting pension around 8k pre month and he deposited around 5L in canara bank for 3 years, after 3 years maturity, 7% interest he recently that deposited year going to end , so he asked to renew but that bank has hold tax of rs.30K from my dad account ,my dad age is 75 he is senior citizen he asked details about tax form that manager, but he is asking bribe for that tax amount to be not shown, kindly tell me if any deposited amt by senior citizen should pay tax and if so how much and other details too

7% of 5L is 35k a year. Anything above 10k interest bank deducts 10% tax. In your case, your income is below the limit. So you can give declaration that your income is below 2.5L and ask them not to deduct tax on interest. If they have already deducted, ask them for Form 16 and file ITR to get your deducted tax back. Some banks may say they have deducted tax but when we check TRACE there may not be any tax credit. In this case, you should ask the bank to deposit the deducted amount in your bank account.

 

[nac]

In view of the above, we would like to give you an opportunity to produce, or cause to be produced, any evidence which you feel is necessary in support of the said return of income on 22/08/2016 at 04:30 PM in the office of the undersigned.

Is the office not near where you live? I mean not the same city?
If then, you can ask if it's okay to send the evidence through email.

This is just my assumption.
They expect us (the ones who file ITR4) to maintain books. If haven't maintained one, get it ready before the date.
You have loss for the said assessment year and you haven't disclosed that in your ITR, it's a discrepancy. But not gonna affect adversely, I guess.

 

[arora]

Is the office not near where you live? I mean not the same city?
If then, you can ask if it's okay to send the evidence through email.

This is just my assumption.
They expect us (the ones who file ITR4) to maintain books. If haven't maintained one, get it ready before the date.
You have loss for the said assessment year and you haven't disclosed that in your ITR, it's a discrepancy. But not gonna affect adversely, I guess.

Office where they have advised me to visit is very far. If i take holidays it will cost me 3 holidays at least. Which not possible. Thats why i am preferring email. what can be affects of not disclosing loss????? Please advised

 

[arora]

I am going to send them following email
I have received notice under section 143(2) of income tax act , 1961 for Derivatives and Securities Transaction.
The Income From Derivatives and Securities transaction in Financial Year 2014-2015 was in Negative (Loss) . I have attached the supporting document provided by our SEBI registered broker. Turn over is calculated according to section 44AB by broker's back office software. Please have a look.
Is it correct. ? Guide ? or something to add more which i am missing

 

[nac]

Office where they have advised me to visit is very far. If i take holidays it will cost me 3 holidays at least. Which not possible. Thats why i am preferring email. what can be affects of not disclosing loss????? Please advised

Neither I have first hand experience nor I am a qualified person. So what I can advise?

It's not a profit you not disclosed. So I don't think there would be consequence in that front. If it was a profit, they may think that you were trying to evade paying tax and ask you to pay with interest or something like that.

In other thread one of our forum member discussed about the notice he received and he submitted the evidence in person.

I don't know if it's okay to send the evidence through email. Since you have time, why not send them an email asking if it's okay.

 

[oi trader boi]

Hi,trading equity cash market intraday also treated as business like f&o??
do we need audit here if income is above 2.5L??

 

[nac]

Hi,trading equity cash market intraday also treated as business like f&o??
do we need audit here if income is above 2.5L??

Yes, it's business.

Audit is required if your t/o is above 1cr or
If you opt for 4S and your profit is less than 8% of t/o

 

[arora]

Office where they have advised me to visit is very far. If i take holidays it will cost me 3 holidays at least. Which not possible. Thats why i am preferring email. what can be affects of not disclosing loss????? Please advised

Neither I have first hand experience nor I am a qualified person. So what I can advise?

It's not a profit you not disclosed. So I don't think there would be consequence in that front. If it was a profit, they may think that you were trying to evade paying tax and ask you to pay with interest or something like that.

In other thread one of our forum member discussed about the notice he received and he submitted the evidence in person.

I don't know if it's okay to send the evidence through email. Since you have time, why not send them an email asking if it's okay.

Yes, sent them email. let's see what reply i will get. Will update here