But from what I heard, if you buy stocks of certain value, you can possibly get a notice under some code/section or some such thing. Is that true?
As a general practice, taxman can do that. But you can submit a simple reply to the notice that your annual income is less than Rs.2.5 lakh from all sources including trading....so not required to file tax return.
Also, is there any reason why I would have to face so many compliance issues? I am going to be taking up a job again in another 2-3 months. Hope I don't face any problems down the line.
I clearly said that if your annual income is less than Rs.2.5 lakhs per annum, no issues whatsoever. When you take up a job again, i am sure you will cross that limit, and you will attract lot of compliance tax rules. Even after taking up job, if your annual income is still less than Rs.2.5 lakhs per annum from all sources, then there are no issues. If you want to escaple tax compliances, your only way is to have income less than Rs.2.5 lakhs per annum from all sources.
As a rule of thumb, any person who is drawing a monthly salary of Rs.21,000 (gross) per month if he indulges in trading or not, is required to file a tax return provided his gross yearly salary exceeds Rs.2.5 lakhs.
So,
if your income level crosses Rs.2.5 lakhs per annum from salary, you need to file tax return. or
if your income level crosses Rs.2.5 lakhs per annum from salary or interest from FDs, you need to file tax return, or
if your income level crosses Rs.2.5 lakhs per annum from trading alone, you need to file tax return, or
if your income level crosses Rs.2.5 lakhs per annum from salary, interest from FDs, you need to file tax return, or
if your income level crosses Rs.2.5 lakhs per annum from salary, interest from FDs, and trading you need to file tax return or
if your income level crosses Rs.2.5 lakhs per annum from salary, interest from FDs alone, but you made losses in trading, you need to file tax return.
Hope this helps.