Just an update to the below post.
I had received further notice from the IT dept, to provide some additional information (not related to trading) which was provided by my C.A. Now I have received intimation from IT Dept. that my scrutiny is completed with my returns being accepted as filed. Summarizing my understanding of my experience :
* All F&O and MCX turnover details are reported to the dept.
* As per reports published in the papers, ALL transactions now are under govt. knowledge. Last week, I.T dept. issued a notice to a woman who made online purchase of about 10 lacs. NRI Friends who had purchased property got IT notices. Even credit card transactions depending on value and place of usage (5 star hotel and luxury establishments), foreign travel, purchase of vehicles, transfer of large value funds to/from banks are reported to govt. and notices/scrutiny can be expected.
* For peace of mind, and to get a closure, it is better to file returns every year, even if it is a nominal income or a loss to avoid scrutiny of old records in future.
* Govt. is trying to widen its base of tax assesse's and will go after individuals who are not filing returns.
* Due to data mining, any account can come under scrutiny.
* Laws are only getting stricter so it is better to be on the right side of the law.
* I repeat my observation that IT Officers are really busy and have little time for traders who CANNOT hide their turnover, transactions or income. So if a trader gets a notice, he has nothing to fear if he has reported his income correctly.
So in my view, it is better to file returns regularly, have peace of mind, and a good night's sleep.
Just my views...
FnOTrader,
I did not ask anything further, and I think I answered the questions satisfactorily to the officer. If the IT dept. has questions in future, I do not have any problems answering, because all transactions can be verified with the broker's statements as well as records of the stock exchange and at MCX. The IT dept. knows the P&L of every individual trader, even if they trade thru multiple brokers. So only those who have not declared true figures need to worry, which I doubt any trader will need to resort to. So for me, the matter is closed as there are no pending questions to answer, and in future if the IT dept has any questions, will handle them as they arise....