As we know the compliance portal has started working very effectively and is sending notice for any type of mismatch, high value transaction or non filing of return.
In many of our earlier post we have talked about compliance notice for non filing of return or FAQ as to how one should reply to such compliance notice.
Today, we are going to talk about another type of compliance notice which many people are getting which is for high value transaction in stock market by trading in shares.
As we know in last decade amount of people investing their income in stock market and amount of capital infused in stock market has increased many folds and during this lockdown also we could see many people investing their time in stock market and trying to earn some income.
Due to modern advancement and brokers people having income of Rs. 5-10 lakh are investing crores of rupees in stock market using the margin facility available either in intra day trading or even delivery based trading.
Because of such high value transactions Income tax department has started raising compliance notice for individuals who are either not filing return of income or are filing return of income with very less income. As the system suspects that how can a person having such low income invest such huge amount.
Also many people often incur losses by investing in stock market and they don’t include such amount in their return of income thinking that since no tax is payable there is nothing wrong in not including the amount in return of income.
However, here they are mistaken because if you are filing return of income and not including the loss made then Income Tax department thinks that you are hiding your income because the information available with them on compliance portal is just of sale made and hence by filing your return of income you firstly accept the sales and then declare the loss.
Thus, even in case of loss it is very important to file your return of income.
Do regularly check your email for such compliance notices and reply them properly to avoid any scrutiny notices.
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