Share trading

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2016 Business person is running cab service business and filing ITR 4 return . now he got notice from IT department for share trading transactions those were not shown in income tax return.

As in F&O business we take total of profit & loss amount to check applicability of sec 44AB.

please guide me what amount (how to show) we should show in return if turnover is below 1 croes and above 1 croes.

if person is doing trading in scrip also, we should show as a short term capital gain???

Amol S Joglekar

Amol S Joglekar (Expert)

07 September 2016 You need to show the PROFIT, if any, in FNO transactions. If there is no income from FNO, then no need to show anything.....you can explain the notice accordingly

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2016 But sir, if total of profit and loss is exceeding 1 cr. then tax audit is applicable, then???
he is doing trading in future and option and scrip as well .

i m planning to show scrip income/loss under capital gain.

Amol S Joglekar

Amol S Joglekar (Expert)

07 September 2016 then do the tax audit and submit the same to income tax department....

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2016 Sir, if turnover is below 1 cr. and person incurred loss in F&O as well in scrip . should we revised the return or should submit reply letter with attachment.
f
if we revise return , can take benefit of set off losses

what we should do??

Amol S Joglekar

Amol S Joglekar (Expert)

07 September 2016 if the turnover (MOD value of difference between sale and purchase) is above 1 crore : do tax audit & submit
if the turnover as above is below 1 crore, just answer the letter; explaining why the share transactions were not shown in return
(The set off of losses is now not possible)

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2016 Thanks a lot but what reason we can mention for this. person has not informed us regarding share trading .

If you have idea,please let me know.

Amol S Joglekar

Amol S Joglekar (Expert)

07 September 2016 you can always say, that since it is REVENUE neutral, the same were NOT included in the total income.

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