CIB-502 in compliance section of my efiling account
This query is : Resolved
15 December 2016
sir,I need a help regarding this issue of cib 502 code in my compliance section although I don't trade in commodities. I did trade in stocks but didn't file the return since I had no taxable income.can you people help me regarding how to respond to this compliance?
19 July 2024
The CIB-502 code appearing in the compliance section of your e-filing account typically relates to non-filing of returns in respect to transactions in commodities. Here’s how you can approach this issue:
### Understanding CIB-502 Compliance:
1. **Nature of CIB-502:**
- CIB stands for "Commodity Transaction Tax" Information Bulletin.
- The CIB-502 code specifically indicates that there is a compliance requirement related to transactions in commodities.
2. **Your Situation:**
- You mentioned that you trade in stocks but not in commodities. However, you have not filed a return due to no taxable income.
### Steps to Resolve CIB-502 Compliance Issue:
1. **Verification:**
- Double-check your trading history to ensure that you have not engaged in any transactions related to commodities. This includes commodities such as gold, silver, crude oil, agricultural products, etc.
2. **Non-Applicability Declaration:**
- If you confirm that you have not traded in commodities, you need to declare this non-applicability to the CIB-502 compliance requirement.
3. **Response to Compliance Notice:**
- Log in to your e-filing account on the income tax department's portal.
- Navigate to the compliance section where you see the CIB-502 notice.
- There should be an option to respond or provide a declaration.
- Declare that you have not traded in commodities and therefore the compliance does not apply to you.
4. **Documentation:**
- Keep records of your stock trading activities and any communication or response you submit regarding the CIB-502 notice for future reference.
5. **Consultation (if needed):**
- If you are unsure about the notice or need further clarification, consider consulting a tax advisor or reaching out to the income tax department helpline for guidance.
### Additional Considerations:
- **Timely Response:** It’s important to respond to compliance notices promptly to avoid any penalties or further inquiries.
- **Future Compliance:** Even if you currently do not have taxable income, ensure to fulfill any filing requirements if your income situation changes or if you engage in taxable transactions.
By accurately declaring your trading activities and non-engagement in commodities trading, you should be able to resolve the CIB-502 compliance issue effectively. Always ensure to maintain clear records and stay updated with your tax obligations to avoid any future issues.
### Understanding CIB-502 Compliance:
1. **Nature of CIB-502:**
- CIB stands for "Commodity Transaction Tax" Information Bulletin.
- The CIB-502 code specifically indicates that there is a compliance requirement related to transactions in commodities.
2. **Your Situation:**
- You mentioned that you trade in stocks but not in commodities. However, you have not filed a return due to no taxable income.
### Steps to Resolve CIB-502 Compliance Issue:
1. **Verification:**
- Double-check your trading history to ensure that you have not engaged in any transactions related to commodities. This includes commodities such as gold, silver, crude oil, agricultural products, etc.
2. **Non-Applicability Declaration:**
- If you confirm that you have not traded in commodities, you need to declare this non-applicability to the CIB-502 compliance requirement.
3. **Response to Compliance Notice:**
- Log in to your e-filing account on the income tax department's portal.
- Navigate to the compliance section where you see the CIB-502 notice.
- There should be an option to respond or provide a declaration.
- Declare that you have not traded in commodities and therefore the compliance does not apply to you.
4. **Documentation:**
- Keep records of your stock trading activities and any communication or response you submit regarding the CIB-502 notice for future reference.
5. **Consultation (if needed):**
- If you are unsure about the notice or need further clarification, consider consulting a tax advisor or reaching out to the income tax department helpline for guidance.
### Additional Considerations:
- **Timely Response:** It’s important to respond to compliance notices promptly to avoid any penalties or further inquiries.
- **Future Compliance:** Even if you currently do not have taxable income, ensure to fulfill any filing requirements if your income situation changes or if you engage in taxable transactions.
By accurately declaring your trading activities and non-engagement in commodities trading, you should be able to resolve the CIB-502 compliance issue effectively. Always ensure to maintain clear records and stay updated with your tax obligations to avoid any future issues.
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