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

[canikhil]

I have received "Notice u/s 139(9)of Income Tax Act, 1961." for the following defect:

"As seen from the Audit information mentioned under ‘General’ information in ‘Part A- Gen’ of the return filed, the flag has been ticked as “Yes” against – ‘Whether liable for Audit under section 44AB?’. However, the audit report, u/s.44AB has not been filed electronically, as required under Rule 12(3) of the Income Tax Rules, 1962. Hence, as per clause (bb) of the Explanation under section 139(9), the return filed is regarded as defective"

But my CA has submitted form 3CB and I have approved it from income tax website before filing my income tax return the same day. Both income tax return and audit report are shown as filed on income tax website for AY 2017-18. The notice says to file query using "Response to notice u/s 139(9)" on income tax website but there is no entry for that field in incometax website.

Please help me to understand the cause of this notice. Should I ignore this notice or raise grievance on incometaxwebsite about this notice.

1. check that the date mentioned in the ITR for submission of audit report is correct;

2. if it is not, then refile the return in response to the notice after making corrections for the date;

3. if yes, then simply disagree with the defects and submit your response

 

[lonstud]

Thank you canikil for the the response.

I have checked the details again. Date for filing ("Filing Date") of Form 3CB is shown as 26th October, 2017 (26/10/2017) on income tax website under e-Filed Returns->other forms. In my ITR 3 form uploaded on the website, the date of furnishing of audit report is also mentioned same as 2017-10-26. So it seems the date mentioned in ITR for submission of audit report is correct.

Under e-file -> Response to Notice u/s 139(9), it still shows "no records found".(There are no records for eProceedings or Worklist-> For your action/information as well). Does it take a couple of days before this notice shows up on income tax website(i received the email today itself) or is there some other way to submit response to this notice.

 

[Raju]

Nikhil Sir,
Had a query , If I trade options on Intraday basis is there specific disadvantage in tax .Something to do with turnover (More tax as compared to other instruments like futures / equity ).I am not sure how to put the query but would surely like to request you to direct me as to only trading options have some disadvantage in relation to taxes ?

 

[canikhil]

Nikhil Sir,
Had a query , If I trade options on Intraday basis is there specific disadvantage in tax .Something to do with turnover (More tax as compared to other instruments like futures / equity ).I am not sure how to put the query but would surely like to request you to direct me as to only trading options have some disadvantage in relation to taxes ?

I am not sure if you are filing your return under presumptive taxation. If yes, then intra-day trading in options will lead to a higher turnover and consequently higher presumptive tax.

In case you are filing without presumptive taxation, then it doesn't matter whether you trade in options or futures.

 

[canikhil]

Thank you canikil for the the response.

I have checked the details again. Date for filing ("Filing Date") of Form 3CB is shown as 26th October, 2017 (26/10/2017) on income tax website under e-Filed Returns->other forms. In my ITR 3 form uploaded on the website, the date of furnishing of audit report is also mentioned same as 2017-10-26. So it seems the date mentioned in ITR for submission of audit report is correct.

Under e-file -> Response to Notice u/s 139(9), it still shows "no records found".(There are no records for eProceedings or Worklist-> For your action/information as well). Does it take a couple of days before this notice shows up on income tax website(i received the email today itself) or is there some other way to submit response to this notice.

wait for a couple of days. This time income-tax department has gone crazy..

 

[traderniftybull]

Nikhil ji

Please cite the reason, if you know, behind inclusion of sell value of option, in total turnover. I am totally puzzled.
Thanks

 

[Raju]

Traderniftybull ,

Sell value of option, in total turnover ? This is something new for me to understand....thanks for pointing out....

 

[traderniftybull]

Traderniftybull ,

Sell value of option, in total turnover ? This is something new for me to understand....thanks for pointing out....

option turnover is calculated as
a + b
where
a is total of plus and/or minus of the trade (like that of futures calculation), and
b is the sell value of the option (option sell price x lot size)

 

[aja]

Nikhil ji

Please cite the reason, if you know, behind inclusion of sell value of option, in total turnover. I am totally puzzled.
Thanks

Yes @canikhil Ji, pls tell us,why this weird thing sell value of option has been considered as a part of TO.

 

[Raju]

Traderniftybullji,
Thanks for the calculations. If quantity increases then profit should also increase in that ratio. Else would end of earning for government only.
The breakeven point with Finvasia was very low when traded in options so wanted to focus on that. Will talk with CA also who manages my returns .

Nikhilji ,
Till date , My CA regularly prepared balance sheet ( submit ITR-3 ) etc. Will share the updates with him also. Thanks again for the help. Audit was not done till date. The income was from IT Consultancy and not from Trading in Market.