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Penalty for not disclosing loss in ITR

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Guest

I have gone through the past threads given about 271-c.. Any one is having clear idea about the penalty if loss from F&O trading is not disclosed . What the rule says?

a looser why again have to loose money by showing this as a presumptive income or tax audit..

expecting some comments ASAP......

Replies (4)

Quick Summary

This discussion clarifies the penalties associated with not disclosing losses from F&O trading in your Income Tax Return (ITR). It explains that F&O trading is treated as a normal business, requiring an audit by a practicing CA if your total trading turnover exceeds the threshold limit (currently ₹1 crore). Failure to disclose losses or comply with audit requirements can lead to notices from the IT department, potentially under sections like 142(1) or 143(2).

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 29 February 2020

Income/loss from F&O trading will considered as normal business.Hence business loss should be audited by practicing CA.

Else high chance of receiving notice from IT dept.

However for loss equity component is not liable for tax audit since it is to be considered in capital gain

Guest

Posted on 02 March 2020

notice under which section ?

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 07 March 2020

They just send formal notice to provide audit report

Income Tax Wala: (Fin. Expert)

Chartered Accountants

1412 Points Posted on 30 March 2020

Dear Guest,

First of all you are more concern about section of notice. so you can get notice u/s 142 (1) or 143 (2).

Earning profit or loss is not a decisive factor whether return or audit report should be file or not. if your total trading cross the threshold limit of audit i.e. 1Cr in a year. you must have to audited your books of accounts.