I received my first ITR order u/s 143(1) recently, and I noticed that it has 2 columns- returns calculated by CPC and returns filed by me.
I read on Zerodha taxation module that income tax department doesn’t know how much profit/loss we make, they only know the turnover.
So my question is, is tax calculated by CPC under 143(1)? Do they know the exact profit/loss we make in stocks?
On a side note, I was thinking, is such a system possible where IT department calculates our net tax payable by themselves, and we can pay it directly or raise an objection if required?
No, they cannot.
No.
They have only trade data gathered linked to STT. So they won’t have idea whether it’s gain or loss
In case of scrunity can they find exact details of p/l .Is broker or exchange liable to provide it.
Income Tax demand information under 131 of of Income tax Act. A broker would provide the information he has maintained. The Broker need to provide the financial transactions reports , ledger , trade reports etc… The PL reports , Capital gain reports are additional reports for ease of traders/ Investors to compile while Tax filing are not obligatory.
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You trade in what instruments ?and what form did you use?
FNO and Cash and mostly Intraday. I started trading only this year so for AY2017-18, I used Form 1 only. This year, I plan to use Form 4 though
If you don’t mind what’s your scrip/trade wise turnover & contract wise turnover?for a reason I’m asking
If they say ITR2 is enough then that’s all all problems solved see if you’re going for ITR 4 you cannot claim business expenses & Depriciations
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