Dear sir, I am a salaried person and doing intraday trading. I filed ITR-1 on 20 Aug 2015 for FY 2014-15. In which I shown salary income only and taken tax refund. Later I came to know that refund which I have taken is not valid. I have made huge loss in day trading. In the month of Jul 16 I received ITD notice under section 143(2) for issues related to “Securities Transaction”. Breakdown of my salary is as follows: (1) Total Income- 515229/- (As per Form-16) Shown in ITR- 417885/- (2) 80C- 150000 & 80G- 545 (3) Tax Paid- 9819 (at source) Refund taken - 9819/- I have not replied to the ITD notice. Please help me. What shall i do now?
This question has been answered in the comments by Darshandd. It would be advisable to put up the same comment as an answer so others may be benefited.
you have to mention, here, date of filling of return. { if you fillied return on or before due date than you may revised the return }
You mentioned that you take tax refund then you realize refund is not valid. Please clarrify because LOSS in day trading does not affect the refund. you can carried forward LOSSES.
you also not mention TURNOVER. It is important because you told that you are doing Intraday trading than you may liable for tax audit if Turnover goes above priscribe limit u/s 44ab.
Please clarrify more :- you have any other source of incmoe other than salary income and trading lossess. If you have no other income than dont worry !
What is your TAXABLE income ? why there is difference between total income and income shown in ITR ? i.e. clarrify ?!.
SIR,
(1) I filled ITR for FY-2014-15 within the due date on 20 Aug 16.
(2) I filled ITR-1 (not ITR-4). I have not claimed loss made in trading.
(3) As per Zerodha 'Tax P&L statement’
Intra-day / Speculative profit (-36260.45)
Intra-day / Speculative turnover 96463.85
Short-term profit (-22870.00)
Short-term turnover 13365.00
Brokerage 28179.57
Turnover charges 9353.94
STT 36019.60
Service tax 4637.89
Stamp duty 6434.11
SEBI charges 573.38
Total charges 85198.49
(4) Notice received u/s 143(2) for “SECURITY TRANSACTION”. No notice received u/s 143(1) yet.
(5) Salary and trading is only source of income. No other income source. In trading I made loss only.
(6) As per Form-16
Total income -515229
Deduction under CH VIA- 150545
Taxable income -364684
Tax on total income- 11469
Rebate u/s 87A- 2000
Tax paid- 9819
I shown income in ITR - 417885 and taken refund of Rs 9819/- by deducting income from allowances. Now I know that those allowances are not exempted from tax. Further I received a mail u/s 154 for transfer of ITR rectification rights to ITO.
A) Can I fill revised return (ITR-4) now by showing income without refund
B) Tax Audit?
C) Pls guide me
i don’t know why you want revise return with ITR-4. Keep in mind that Expenses related to trading is deducted only if you mention trading as a business. You can also carried forward your loss with ITR-2.
don’t forgot to see 26AS which is related to TDS, if any, and more.
Dear lots of information needed to solved the problem. All are not possible here. sorry for the same.
You may raise your quarry to CACLUBINDIA. >> http://www.caclubindia.com/
You are right Nikhil but the problem is final conclusion ! In quary there are some information needed and hence it is better to comment and collect all information rather than write in Answer.
Can you please elaborate this point more. OP must be trying a way out to avoid audit and hence using ITR 4. Can we use ITR2 even if losses are made on intraday trade? Or is it better to use presumptive scheme and use ITR4 and just show 6% as profit of turnover and avoid the audit?