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Penalty for not disclosing loss in ITR

(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......

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4 Replies

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 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

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(Guest)

notice under which section ?

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 07 March 2020

They just send formal notice to provide audit report

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 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.