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

[lonstud]

I visited IT office today to submit 10DB and other documents as verbally requested by ITO on 18th August, 2017. Today, the behavior of ITO was much more cordial and he gave me assessment order (prepared beforehand), which accepted my Income tax as filed by me and no further income was assessed. With this, the assessment proceedings for AY 2015-2016 comes to end.

During discussion today, I figured out why the Income tax officer was so annoyed on 18th August. I had filed an RTI with CBDT with respect to notice issued on 8th August. In the notice issued on 8th August, ITO had mentioned a note that I had not complied with previous notices and hence I requested details as to how I have not complied with previous notices and submitted proof of my attendance, acknowledgment from previous ITO(ITO officer had changed between last year and this year) and email copies. He said this kind of online RTI query increases his workload and hence requested not to file them in future . Since current assessment proceeding are closed and further assessments will be completed through e-assessment, I figured its best not to argue or escalate this issue further.

 

[FnOtrader80]

I visited IT office today to submit 10DB and other documents as verbally requested by ITO on 18th August, 2017. Today, the behavior of ITO was much more cordial and he gave me assessment order (prepared beforehand), which accepted my Income tax as filed by me and no further income was assessed. With this, the assessment proceedings for AY 2015-2016 comes to end.

Congratulations Lonstud , everything is well that ends well.

 

[Square]

I have made some profit in this month ending today and hence my April till date P&L has turned green. This will be first time since last 3 years since I started trading in FO. I have carried forward my loss during the last two years in my IT returns and shown them as business loss in ITR4. I have not done audit since I think my TO was less than 1 Cr but I have not got any notice for scrutiny yet. No my question is that since I have made net profit of 33k in the present FY how do I set off this profit against my carried forward loss. Do I have to first pay advance tax in Dec 17 or Mar 18 on the profit I earned in the current FY and then some setoff in my ITR next year and then claim refund of the tax paid OR I do not have to pay any tax on the profit for this year and directly show set off in my ITR next year (against the loss carried forward) and do not claim any tax refund.

 

[canikhil]

I have made some profit in this month ending today and hence my April till date P&L has turned green. This will be first time since last 3 years since I started trading in FO. I have carried forward my loss during the last two years in my IT returns and shown them as business loss in ITR4. I have not done audit since I think my TO was less than 1 Cr but I have not got any notice for scrutiny yet. No my question is that since I have made net profit of 33k in the present FY how do I set off this profit against my carried forward loss. Do I have to first pay advance tax in Dec 17 or Mar 18 on the profit I earned in the current FY and then some setoff in my ITR next year and then claim refund of the tax paid OR I do not have to pay any tax on the profit for this year and directly show set off in my ITR next year (against the loss carried forward) and do not claim any tax refund.

as long as the losses were carried forward, you can adjust them against the current year gains. no need to pay tax as long as the gains are less than the overall carried forward loss.

 

[Square]

Ok. Tanks.
My loss is under 3L which is carried forward in ITR, so till I reach this figure this year or even in future years, I do not have to pay any Advance Tax. But I will have to show the set off in my ITR, which I will file next year or future years, right?

 

[Raj232]

With this, the assessment proceedings for AY 2015-2016 comes to end.
During discussion today, I figured out why the Income tax officer was so annoyed on 18th August. I had filed an RTI with CBDT with respect to notice issued on 8th August. He said this kind of online RTI query increases his workload and hence requested not to file them in future .

@lonstud : My gut feel is that the RTI made the difference, else the matter would not come to an end that easily. Keep up the good work of posting your experiences.

 

[canikhil]

Ok. Tanks.
My loss is under 3L which is carried forward in ITR, so till I reach this figure this year or even in future years, I do not have to pay any Advance Tax. But I will have to show the set off in my ITR, which I will file next year or future years, right?

yes. you will have to show the set off in the tax return and continue to carry forward the balance amount till it is available for set off under the provisions of the Income-tax Act.

 

[Square]

My TO may likely exceed the limit of 1 Cr this FY. Do you do audit and where are you based. What are your fees for audit?

 

[canikhil]

for this FY the audit limit is Rs 2 cr. So unless you have any other income under salary head, you don't need audit till your turnover exceed Rs 2 cr. we can discuss fees etc. you can PM me to discuss specifics.

 

[lonstud]

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.