For this you file revise return for A.Y. 2015-16 taking actual salary and loss form trading of securities.
Notice u/s 143(2) of income tax
Hello, I have received notice u/S 143 (2) , asking there in -"Whether the investment and income relating to securities transactions are duly disclosed." for AY 2015-16. I am working in a PSU Bank, while filling ITR for AY 2016-17, I have wrongly selected AY as 2015-16 instead of 2016-2017. For AY 2015-16 ,I have income under salary head of Rs 247000/- and for AY 2016-17 ,my income under salary head is 472000/-.Due to this I have earlier got intimation under section 143(1) ,and have to pay 17000/- as tax for AY 2015-16 and again have to pay interest on income tax while filling ITR for AY 2016-17. I have raised a grievevance online regarding this, they have told me to visit my Assessment officer for rectification. Since I am posted outside my home state I couldn't go to my home town I choose to pay demanded income tax. it is further submitted that I have done trading in stocks markets during AY 2015-16, but I have not gained any profit from that,instead I incurred losses. Now, I have been served notice u/s 143(2) ,regarding income related to income from securities for FY 2015-16. please help me in this regard on how to get out of this mess., What reply and evidence should be sent to IT department?
Asked 7 years ago in Income Tax
If the notice is served for FY 2015-16 (as mentioned by you) and you have filed return for FY 2015-16 on or before 5 Aug 2016, you can file revised return for FY 2015-16 and get out of this mess.
Please feel free to call/ revert in case you need further clarity on the above.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
If you have received a notice u/s 142(1) also for AY 2015-16 , then you can file a revised return stating the correct particulars of income. You will have to state the correct amount of salary income along with the short term / log term capital gains or loss that have arisen from the trading in shares.
If you have not received a 142(1) notice, you can file a rectification application with the Assessing Officer, stating the mistakes made in earlier return of income and the correct particulars of income.
In reply to the notice u/s 143(2), you will have to file written submissions with the Assessing Officer and appear before him at regular intervals. You will have to prove that the share transactions resulted in short term / log term capital gain / loss along with relevant documentary evidences. You will also have to state that the salary income was incorrectly stated in the return of income and inform the correct salary income along with the Form 16A issued by your employer.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
Hello,
The income tax department is not interested if you have made profits or not. But the point is have you disclosed it or not. In your case since you know that you have entered into such transactions and not disclosed to the department you can reply to them that it was a loss and prove the same with the help of your broker ledger and contract notes.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Thank you for the guidance. I am a salaried person and file ITR -1 , so where exactly should I show my income arising from share trading in the form. Is Showing profit as part of 'other Income's is sufficient? Or do I have to mention other details too.
Asked 7 years ago
Hello Sir,
You will have to fill ITR - 2 and fill the Capital Gain Tab.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
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