Limited Scrutiny Notice

[FnOtrader80]

@FnOtrader80 ,what is your exact case with IT Dept?

Harassment for bribe despite being on the right side of the law. I was initially open to the idea but then changed my mind and didn't pay a single penny. Lets see what happens.

 

[Kumar .]

Harassment for bribe despite being on the right side of the law. I was initially open to the idea but then changed my mind and didn't pay a single penny. Lets see what happens.

Such replies create a fear about IT Dept.Your last reply was also very sad and terrifying so I asked-

@FnOtrader80 ,what is your exact case with IT Dept?

Where it went wrong exactly?
If you have paid all the dues,
If you have mentioned right turnover,
If you have disclosed all the sources of Income you are getting then how they are harassing you?

 

[Kumar .]

@FnOtrader80 , I read your all posts to know what was the case.Its really very strange.

1)Your TO was below 1Cr,but the profit was above 8% of your TO.So you declared 8% as a profit and paid a tax on it.

2)As per you your TO was 99Lakhs but as per IT Dept it was 47 Crs?? as they were not considering ICAI rules and considered your trading volume which was 280crs.

Did I understand it clearly or missed something?

Are you sure your TO was really below 1Cr?Because 99lakhs TO looks very suspicious.
Here,if you just add 1 lakh,you 100% need an audit.

 

[FnOtrader80]

@FnOtrader80 ,
Are you sure your TO was really below 1Cr?Because 99lakhs TO looks very suspicious.
Here,if you just add 1 lakh,you 100% need an audit.

Yes my turnover was 99,9x,xxx so not just a lakh add a few thousand and it easily crossess 1 cr but surprisingly officer accepted my turnover calculation as i had attached a copy of ICAI guidelines along with my turnover calculation.
My major grouse is when my IT return is selected for limited scrutiny - Derivatives transactions - scrutiny should be limited to derivatives transactions and source of funds used for derivatives transaction but when they found i had duly disclosed all my transactions and profits they went on a "fishing expedition" asking for all and sundry documents trying to find "something" which they couldn't.

 

[FnOtrader80]

Finally received assessment order for scrutiny assessment for AY 2015-16 with nil demand. Let's see what happens to scrutiny assessment of AY 2016-17.

Update:
Even after submitting all these documents i got a further notice under sec 142(1) ..pic attached

And even after submitting reply to this notice i got further queries:

1) Note on the activity carried out by you under futures and options
2)Evidence for deduction claimed under chapter VI

And after submitting the response to the above queries i received call from ITO to visit personally which i did to "settle" the matter which i eventually did. The Irony: I had paid more taxes than due ! I don't know if this aint tax terrorism what else is ?

 

[dr_zindgi]

Myself also received limited scrutiny for Derivatives for AY 2015-16.
I am a govt salaried employee. Filed returen on 31st march 2017 for AY 2015-16.
Right now opted for e assessment.
Mine was FNO loss around 1.5 lac. But , due to time constrain, could not audit. So did not show loss and instead filled wrong (less) turnover and showed profit slight more than 8% and paid tax according to it.
Now what are the ways for me , which are out. I have also paid more tax then it would be, if i have audited the accounts (coz actually i had loss, so would not have paid tax on business income).
Please send me the sheet you attached mentioning ICAI rules.
Also please mention the amount of bribe they asked. Coz, in my case, as i am wrong, I will have to settle the case.
Please reply me as soon as possible.

 

[mmca2006]

Do not scared about limited scrutiny.. It is " LIMITED " Keep your C.Note ready for each transactions.. take note of detailed bank transactions for each payment to broker and amt. deposited to bank by broker.At the very beginning should not think about bribe, more over you have chosen for e-assessment . Consult a CA who understands derivative market transaction . If you personally want to appear for e-assessment , no problem but please do not show your weakness and never declare before them that you had suppressed turnover or you had done any thing wrong, let them find.
By selecting e assessment you have done right thing. for FUTURE transaction , turnover = profit + loss from derivative transactions. Read the threads of CA Nikhil , a member of Traderji , you will get good understanding regarding Audit requirement and taxation relating to derivative transaction.

 

[canikhil]

Myself also received limited scrutiny for Derivatives for AY 2015-16.
I am a govt salaried employee. Filed returen on 31st march 2017 for AY 2015-16.
Right now opted for e assessment.
Mine was FNO loss around 1.5 lac. But , due to time constrain, could not audit. So did not show loss and instead filled wrong (less) turnover and showed profit slight more than 8% and paid tax according to it.
Now what are the ways for me , which are out. I have also paid more tax then it would be, if i have audited the accounts (coz actually i had loss, so would not have paid tax on business income).
Please send me the sheet you attached mentioning ICAI rules.
Also please mention the amount of bribe they asked. Coz, in my case, as i am wrong, I will have to settle the case.
Please reply me as soon as possible.

nothing much you can do. the only problem is that you have shown wrong turnover. in case that is established, it would lead to additional tax liability plus interest for late payment of taxes etc. plus penalty in case it is established that you deliberately reduced the turnover to evade taxes.

 

[dr_zindgi]

nothing much you can do. the only problem is that you have shown wrong turnover. in case that is established, it would lead to additional tax liability plus interest for late payment of taxes etc. plus penalty in case it is established that you deliberately reduced the turnover to evade taxes.

I had fno loss for the same period. But I have shown marginal profit (40000 on turnover of 4 lacs). The actual turnover was around 8 lac, But had loss. So actually paid more tax to refrain from any query.

 

[canikhil]

I had fno loss for the same period. But I have shown marginal profit (40000 on turnover of 4 lacs). The actual turnover was around 8 lac, But had loss. So actually paid more tax to refrain from any query.

unfortunately that is not how it works. because once you go under 44AD, the profit will be computed at 8% of the turnover. So if the turnover is Rs 8 lakhs, the profit should be minimum 64K. now as you may see the overall tax impact is not much. But the tax office can levy penalty for concealment of income etc.