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

Hi
You have posted, what I want to post but didnt post.

One can add wife and adult/college going child(ren) or siblings, with no income, in this list.

One can divide income among family members by dividing trading period/months among them. And if one has 4-5 such members in his family, one can generate 15-20 lakhs (may be more) of tax free income, using 80C deductions and other legal means.

Only thing is to provide initial capital by means of gifts (but not to ones wife) or loans.

IMO, even a loss above certain limit will be subject to audit, so one should take care of this limit.

Please do consider impact of clubbing of income here.

Thanks
But among whom clubbing impact will be there.

still awaiting your reply
please reply
and please also reply why clubbing will apply in such cases

Thanks

Nikhil Sir

Still awaiting your reply
Thanks

Actually my mistake on this as I missed out replying.

1. good part that you have already covered excluding wife while gifting etc

2. You forgot to exclude son's wife (which may not apply to most of us as we are still young!). You need to exclude her also out of eligible persons for receiving gifts as income generated from gifts made to her will attract clubbing


Also, to add one more response to your original comment.

Before you go ahead and constitute such a system, please be sure that given the aggressive assessments from Income-tax department, you might end up having several family members of the family receiving notices and assessment proceedings!

Thanks Sir for quick replies.I'm facing this issue now-



My CA filed this return wrong.I told him to file plain ITR-4(without audit case) and he put the calculations under 44AD and so I got this defective return notice.

Now CA is not responding properly.The return was filed by his trainee staff.What if I didnt response to this 139(9) Notice??

ty

P.S.- error code 31

If not corrected, the return will be rejected within 15 days.

Hi, What will be the fine if ITR4 is not filed and only salary ITR is filed. FNO is in loss, so if it is not mentioned, what will be the consequence if on investigation they find out FNO is traded but in loss.

Do traders doing day trading in stocks also need to adhere to same audit requirements as FnO traders have to...considering day trading in stocks is speculative profit.

Sent from my AO5510 using Tapatalk

See what happens is that all the trading activities be it in F&O, commodities, equity market are reported to Income-tax department. So one way or the other, they know that you have traded. But they don't know whether there is any taxable income or not.

Now, lets assume that there is a loss but then the audit becomes applicable if conditions under 44AB were satisfied. In such a case you are still liable for penalties for non-compliance with 44AB.