Limited Scrutiny Notice

#91
how you settle with the tax officer is also very important. Don't settle without correcting the issues involved. so first get the audit done and settle only to avoid penalties for late audit etc.
1. Sir, Audit karwane se tax refund claim karna padega coz actually it was loss. Will he allow that?
2. Sir, What are the normal audit charges u/s 44AB? (u can pm me.)
3. How much amount can he(Taxman) ask for not applying late audit penalty?(u can pm me.)
Other members who have such exposure, directly or indirectly, also please give advice on above question.
 

Square

Active Member
#92
Hi canihkil, 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

Well-Known Member
#93
1. Sir, Audit karwane se tax refund claim karna padega coz actually it was loss. Will he allow that?
2. Sir, What are the normal audit charges u/s 44AB? (u can pm me.)
3. How much amount can he(Taxman) ask for not applying late audit penalty?(u can pm me.)
Other members who have such exposure, directly or indirectly, also please give advice on above question.

1. you can easily forget about the refund at this moment. It is a delicate balance that you need to strike. What you need to establish is that you made a mistake in the original return and when you realised your mistake, you took measures to correct the anomaly. The best case scenario will be that the tax officer doesn't levy any penalty and leave the matter as it is. expecting refund will be a stretch here.

2. the audit costs vary from CA to CA. where are you located and where is your assessment going on?

3. don't bother about the third question right now.
 
Last edited:
#94
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: Received notice us sec 142 (1) last week asking for
Letter of Authority in the prescribed format with proper stamp fee as per Bombay Stamp Act, if the
case is represented by an Authorized Representative.
Antecedents of the assessee.
Details such as residential & office address; office, residential, mobile phone numbers; email ID etc.
Copy of the Income tax returns filed by you for AY 2016-17, 2015-16 & 2014-15 , Computation of
Income along with all its enclosures and copy of assessment orders for the preceding two years, as
applicable.
Copy of Balance sheet and profit and loss account along with all the schedules, current account and
capital account as on 31/03/2016, 31.03.2015 & 31.03.2014. Copy of audit report, as applicable.
Please also file the audit report for the previous three years.
Details of all bank accounts held by you in F.Y. 2015-16 along with closing balances as on 31.3.2016.
Please submit details along with relevant evidences in respect of following:
(i) Large value sale of futures (derivative) in a recognized stock exchange reported in Securities
Transaction Tax Return and no business income declared by assessee (STT code 5 and Sch.BP of
ITR)

Submitted my response on the e-proceeding site.
 
#96
Many shocking stories,, Seems like IT is behind F&O turnover,, So they have all our turnover details for sure I guess ?
Yes of-course, they get exchange wise volumes and stt paid details. If your return comes under scrutiny they will ask you and and your broker for Global report (Over all P/L report).
 

GENIETRADE

Well-Known Member
#97
The brokers are to be instructed by authorities to allow F & O trading only for such clients who have annual income of more than Rs.2.5 lakhs and have filed their tax returns for the last 3 years.
The clients who have annual income of less than Rs.2.5 lakhs and have not filed tax returns for the last 3 years are to be allowed to trade by the brokers in cash segment that too in delivery mode only (CNS).
Make it mandatory for the clients to file tax returns for the last 3 years, before allowing them to trade in Intraday or F&O trading.
If these steps are implemented, then most of the newbies who are just starting baby steps in trading, can be saved from the hassles of audit, books of accounts, apart from ruthless leverage.

In the line of issuing learners driving license, brokers also should have a trading account for learners also. There can be limit of capital to be funded, TDS or onetime Tax payment method. Take a learners trading account with say Rs.50000 max and pay TDS upfront of Rs.10000. Also keep a cap on profits to be made in this account say Rs.50000. If the account reaches maximum profit target of Rs.50000 in any financial year, no more trading to be allowed in that account until financial year closes. Only one learners trading account to be opened across all brokers combindly in any financial year. The purpose of this account is to facilitate new comers for learning purpose with ease of tax laws. Even the tax dept's work load is also reduced without sacrificing the tax.
 
#98
Hi,
I started trading in FY16-17. 95% of my trades were from options. My FnO turnover was 2.25 crores and net loss was 25000. As it was my first year of trading i was not aware of the audit requirements. By the time i came to know that i have to file audit report, the last date for submission had passed. So to avoid penalties for late submission of audit report under 271b, i didn't file any return for FY16-17. What are the chances of getting a scrutiny notice?
I cannot afford to pay the huge penalty of 1.5 lakhs. My total trading capital itself is 1 lakh only!!
I also had FD interest income. But applicable taxes are already paid as TDS.
 

OneThatGotAway

Well-Known Member
#99
@Daytrader99 there is no need to worry in your case.... my case was similar to yours expect my figure was greater then yours .
i did not had to pay penalty of 1.5 lakhs ...
Find a Good CA in your city visit him All be ok .no worry

And IT (Idiots Taklas income tax ) dept gets all trades above 10 Lakhs ... now u know reason why algo is always displaying min qty lol
in nifty case when u enter sell order immediately to harass u 75 qty trade less then your price always comes instantly haha ALGO
 

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Name:Phone:
Email:City:
State:
Are you a day trader?