Comment on Taxation Simplified
commented on
05 Aug 2013, 03:37 AM
Chella,
Firstly the biggest mistake people do is to assume that no profits means no need of filing your income tax returns. It is mandatory to file your returns even if you are making losses year on year.
There are 2 things which can happen when you haven’t filed:
1. You get a notice tomorrow asking you for the returns based on the turnover you have done on the exchange. If you haven’t filed, the risk is that as per 44AD, the IT department may ask you to pay taxes with penalty considering 8% of your turnover as profits.
2. If tomorrow you make profits from trading or any other business, you will have to pay taxes on the entire gain and can’t use these losses to set it off.
Yes 44AD is applicable from AY2011-12
Last day for 13-14 is 31st Sept with audit.
You can file belated returns for AY 12-13 even now.
Hope this helps