Notice from it - error code 32 for losses in f&o

Efiling 3138 views 10 replies

VJ

senior engineer

65 Points Joined July 2012

For AY 2014-15 I received notice from IT - Notice u/s 139(9)of Income Tax Act, 1961.

I am a salaried person with losses in F & O Trading, I filed the same in ITR 4. But I received a notice from IT stating the below. I don't know how to proceed on this. Please guide.

Error Code 32 - Tax Payer has claimed loss under the head “Profits and gains of Business or Profession”; however, he has not filled Balance Sheet and Profit and Loss Account and has
not got the books of account audited.

Probable resolution - Taxpayer has claimed loss under the head profit and gains of business or profession, however he has to fill Balance sheet and Profit and Loss account. Incase assessee's falls under section 44AD assessee also has to get his books of account audited if his income is less than 8% of the gross receipts.

Replies (10)

Minesh Rawat

Article

199 Points Joined June 2012

How much was the turnover in F & O??Was it more than 1 crore??

Karthik.V.Kulkarni

Chartered Accountant

594 Points Joined December 2012

As probable soltion is there please follow. It is correctly stated. If you have business you need file tax audit report and fill balance sheet and profit and loss account. Kindly rectify the same and file.

TEENA NAGADA

72 Points Joined April 2011

same notice to my client. He had claimesd a Fo loss of 3 lacs NOw same error code 32 issued u/s 139 (9)

CAn i revise return U/s 139 - 5 ?

CA Amit kumar gupta

Practice

64 Points Joined January 2012

This case you received a notice u/s 139(9), it means your return is defective return.

So please correct ITR 4 in each manner like prepare profit & loss account, Balance sheet. you can file revised return if you had filed original return before the last date of filing of ITR.

Prepartion of P&L and B&S is not a easy task for you becoz u r non commerce background. Please take the help of CA.

VJ

senior engineer

65 Points Joined July 2012

Thanks all, but can I file revise return now..since it was mention in the notice to file it within few days..which is already up. What is the last date to refile the same.