Comment on Taxation Simplified
commented on
30 Sep 2013, 11:04 AM
Answer to your queries:
1. Tax audit required if there is a loss?
Intraday trading is considered as speculative business and comes under the head of business and profession only. If you are doing this as a regular activity, you need to get your books audited.
Audit is based on your turnover and not based on whether you have made a profit/loss.
2. Is there any penalty?
By not declaring loss, you have forego the benefit of carry forwarding the loss and netting it off against future profits. File the returns now and whether penalty or not will be dependent on the Income tax officer, but as long as you have not tried to hide anything in terms of profits, you should not have a penalty.
Don’t be worried about it, the notice you have received is a generic common notice sent to many people who have purchased securities for more than Rs 20,000.
File all the returns from previous years(from 2009) right now and since there is a loss you will not have any tax as such to pay.
Also for the previous years, if your profit is less than 8% of your turnover or if your turnover is more than 1 crore, you will have to get your books audited as per section 44AD.
hopefully clears your queries..