Limited Scrutiny Notice

comm4300

Well-Known Member
#21
My meetings with IT officer going from last year........ acc to them...my turnover is 7.5 crore and acc to me..it is 27 lakh.....i was in loss, so didnt get account audited........ now in last meeting they asked for a bribe to settle matter which i denied........ i told take penalty acc to law, if found me guilty... now they again called me on monday...... they threaten with desire consequences...all past transactions will be scrutinised etc etc... but i was firm that i will not pay bribe as i dont have anything to hide.... though bribe amount was small but my religion dont allow me........ lets see what they tell me on monday... anybody...can u please send me any IT dept guideline on turnover calculation or is it a grey area?
Surprising to see you being asked for bribe by IT people.
What place are you from?
 
#22
i told take penalty acc to law, if found me guilty... now they again called me on monday...... they threaten with desire consequences...all past transactions will be scrutinised etc etc... but i was firm that i will not pay bribe as i dont have anything to hide....
you can complain on pgportal.gov.in or after entering incometaxgovefiling.gov.in goto e nivaran and file your complaint there. Its better to pay if the amount is small...just my perspective.
 

suri112000

Well-Known Member
#23
you can complain on pgportal.gov.in or after entering incometaxgovefiling.gov.in goto e nivaran and file your complaint there. Its better to pay if the amount is small...just my perspective.
The powers are given to IT to collect the taxes. Such powers are not supposed to be misused by IT to collect bribe especially from people who are first timers in such situations. IT should educate and guide the people how it is to be done correctly. Traders are not doing a sin knowingly and it is crystal clear. If IT is honest, it should educate, guide and help the people to be Tax compliant by giving them sufficient number of chances to correct themselves instead of seeking bribes to settle the issues.

Just my views and the actual face of IT may have a different face altogether.
 

DSM

Well-Known Member
#24
Oops. That is sad to know.

Re. turnover, as per my CA, Total Profit+Total Loss = Turnover.



My meetings with IT officer going from last year........ acc to them...my turnover is 7.5 crore and acc to me..it is 27 lakh.....i was in loss, so didnt get account audited........ now in last meeting they asked for a bribe to settle matter which i denied........ i told take penalty acc to law, if found me guilty... now they again called me on monday...... they threaten with desire consequences...all past transactions will be scrutinised etc etc... but i was firm that i will not pay bribe as i dont have anything to hide.... though bribe amount was small but my religion dont allow me........ lets see what they tell me on monday... anybody...can u please send me any IT dept guideline on turnover calculation or is it a grey area?
 

DSM

Well-Known Member
#26
Thanks Princy,

According to my explanation all options transactions are closed at expiry, so if options are sold, and premium received, they are bought back at a nominal price, so this would make your definition and mine the same. However, I guess your example is more comprehensive considering that premium received on options sold but not bought back. Right?

No, it's only for future trading

Options trading turnover is total profit +loss + sell side premium amount of the option =turnover of options

Regards
 

princy01

Well-Known Member
#27
Thanks Princy,

According to my explanation all options transactions are closed at expiry, so if options are sold, and premium received, they are bought back at a nominal price, so this would make your definition and mine the same. However, I guess your example is more comprehensive considering that premium received on options sold but not bought back. Right?
I am not sure what you said but I give an explanation

Suppose we bought 10 K worth of options and sold for 15 k, so profit is 5 k, right?

Turnover will be = 15 k - 10k= 5k + 15 k = 20 k


Suppose we sold options first and received 20 k and it expired worthless

Profit is 20 k, sell side premium also 20 k

Turnover is 20 k +20 k = 40 k
 
#29
I am not sure what you said but I give an explanation

Suppose we bought 10 K worth of options and sold for 15 k, so profit is 5 k, right?

Turnover will be = 15 k - 10k= 5k + 15 k = 20 k


Suppose we sold options first and received 20 k and it expired worthless

Profit is 20 k, sell side premium also 20 k

Turnover is 20 k +20 k = 40 k
Right

Sell side premium + abs value of (Profit or Loss) is TO in options :)


Happy :)
 

oi trader boi

Well-Known Member
#30
Prince and DSM Ji,
due to this option turnover Kirkiri,I'm sure many small traders willl simply trade either cash market or only futures..a big big NO to Option trading.

:(