Notice under section 139 ( 9) of income tax act

ITR 1544 views 2 replies

Varughese P M

Foreman

24 Points Joined May 2012

Sir, I am an employee working in a Government department having Income from salary. I am an active trader in the equity market cash. I do have intraday profit as well as losses from delivery based trades. Net income from the share trading is negative .As I do online trading I do keep my contractniotes electronically. I filed my return in Form ITR No.4. I have received notice undwer section 139(9) with error codes 23, 14 and 32.

I have intraday profit of Rs.120,000 and delivery base loss of Rs. 780000/- Can you guide me in how to mention this in P&L aswell as in Schedule BP of the form.?

Is its mandatory to have balance sheets, book of accounmts for an sharetrading buissiness which I engage as and when time gets on my spare time. Moreover this ended in loss. Kindly help by giving guiding me to rectify the IT notice.

Replies (2)

jaimin

Finance Executive

465 Points Joined August 2008

You can have some idea from the given discussion

/forum/response-to-notice-u-s-139-9--251285.asp#.VM2pmSxGQy0

Ramit sharma

assistant

52 Points Joined February 2015

Dear friend, 1. Intraday profit is a profit in nature of speculation business as per section 29 of income tax act, 1961 and delivery base loss is not mentioned in the above section, hence it cannot be set-off against the profit. Therefore, the entire profit is taxable u/h income from other sources 2. Profit &loss account and balance sheet is mandatory only in case of companies, for individual like you, it is not mandatory.