Notice for non-filling of return fy 12-13, no sec is written
This query is : Resolved
07 January 2016
My friend has received a notice for non-filling of return FY 12-13, but section is not mentioned on notice. It has asked for below points under notice:-
Code Information
STT-01 Purchase of equity share in a recognised stock exchange.
STT-02 Sale of equity share (settled by the actual delivery or transfer) in a recognised stock exchange.
STT-03 Sale of equity share (settled otherwise than by the actual delivery or transfer) in a recognised stock exchange.
I don't know how to calculate tax on above issue. In 26AS TDS deducted Rs 39 u/s 194H against amount credited 387. My friend only says that he used to purchase & sale shares in FY 12-13
Kindly let me know the exemption limit on above shares & how to find out profit in purchase & selling of shares?
Code Information
STT-01 Purchase of equity share in a recognised stock exchange.
STT-02 Sale of equity share (settled by the actual delivery or transfer) in a recognised stock exchange.
STT-03 Sale of equity share (settled otherwise than by the actual delivery or transfer) in a recognised stock exchange.
I don't know how to calculate tax on above issue. In 26AS TDS deducted Rs 39 u/s 194H against amount credited 387. My friend only says that he used to purchase & sale shares in FY 12-13
Kindly let me know the exemption limit on above shares & how to find out profit in purchase & selling of shares?
07 January 2016
Get contract notes and party ledger from your friend/ his broker. Also ask to get Scrip wise Profit and loss statement for the period. You need not to fear as- your friend would not have earned taxable income from shares ( 90% people makes losses and thereafter stops). If you do not know, then contact any of your knowledgeable friends/ relatives/consultants.
13 January 2016
Sir,
After your reply: I asked for statement of "Angel Broking Pvt Ltd" from my friend. Which I can't understand properly. In short I can say that during Fy 12-13, there are more than 150 effective dates (may be called transaction) & some columns there like (Particular-Debit-Credit-balance). Some of the dates (transaction) are recorded in Debit side with their amount & some of the dates (transaction) are recorded in credit side with their respective amount. During FY 12-13 of 150 transactions, In the balance column amount increased & decreased as per debit & credit effective amount. Finally on 31.03.2013 balance amount of 23031.98 is found. I want to know, it is income, if yes, How much tax to be calculated? kindly revert.....
Note:- Balance column increased with amount, when amount is recorded in Debit side. balance decreased when amount is recorded in credit column. Statement is opposite in comparison of bank statement.
After your reply: I asked for statement of "Angel Broking Pvt Ltd" from my friend. Which I can't understand properly. In short I can say that during Fy 12-13, there are more than 150 effective dates (may be called transaction) & some columns there like (Particular-Debit-Credit-balance). Some of the dates (transaction) are recorded in Debit side with their amount & some of the dates (transaction) are recorded in credit side with their respective amount. During FY 12-13 of 150 transactions, In the balance column amount increased & decreased as per debit & credit effective amount. Finally on 31.03.2013 balance amount of 23031.98 is found. I want to know, it is income, if yes, How much tax to be calculated? kindly revert.....
Note:- Balance column increased with amount, when amount is recorded in Debit side. balance decreased when amount is recorded in credit column. Statement is opposite in comparison of bank statement.
13 January 2016
The statement can briefly be told as Party Ledger.
.
Obtain from the broker " Sauda Summary" for the period during he transacted.
.
This is a datewise statement in which description of scrip, rate, quantity etc, in which your friend has transacted, are recorded. Corresponding to each date there is an entry in the party ledger with you.
.
You can also ask for the P&L statement- a scrip wise profit loss statement.
.
On the basis of sauda summary you have to decide profit & loss.
.
.
Obtain from the broker " Sauda Summary" for the period during he transacted.
.
This is a datewise statement in which description of scrip, rate, quantity etc, in which your friend has transacted, are recorded. Corresponding to each date there is an entry in the party ledger with you.
.
You can also ask for the P&L statement- a scrip wise profit loss statement.
.
On the basis of sauda summary you have to decide profit & loss.
.
15 January 2016
Good evening,
If she doesn't have Profit & Loss statement, Can't tax be calculated on the basis of these statement?
If she doesn't have Profit & Loss statement, Can't tax be calculated on the basis of these statement?
04 August 2024
To address the notice for non-filing of income tax return for FY 2012-13 and calculate the tax liability based on the transactions mentioned, follow these steps:
### **1. Understanding the Notice**
The notice is related to the sale and purchase of equity shares, and it highlights the following:
- **STT-01**: Purchase of equity shares in a recognized stock exchange.
- **STT-02**: Sale of equity shares settled by actual delivery or transfer.
- **STT-03**: Sale of equity shares settled otherwise than by actual delivery or transfer.
### **2. Calculate the Profit or Loss**
To determine the taxable profit or loss, you need to follow these steps:
#### **a. **Collect Transaction Details**
- Obtain the detailed statement from the broker (Angel Broking Pvt Ltd) that shows all the transactions of buying and selling shares, including purchase and sale dates, amounts, and STT.
#### **b. **Determine Purchase Price and Sale Price**
- Identify the purchase price and sale price for each transaction. The profit or loss for each transaction is calculated as:
\[
\text{Profit or Loss} = \text{Sale Price} - \text{Purchase Price}
\]
#### **c. **Summarize Transactions**
- Sum up all the profits and losses from individual transactions to get the total profit or loss for the financial year.
### **3. Calculate Taxable Income**
#### **a. **STT and Tax Implications**
- **Equity Shares**: Gains from the sale of equity shares where STT is paid are classified as long-term or short-term capital gains depending on the holding period:
- **Short-Term Capital Gains (STCG)**: If the shares are held for less than 1 year. Taxed at 15% (plus applicable surcharge and cess).
- **Long-Term Capital Gains (LTCG)**: If held for more than 1 year. Taxed at 10% without indexation benefit or 20% with indexation benefit.
#### **b. **Exemption Limit**
- **STCG**: There is no exemption limit; STCG is taxed directly.
- **LTCG**: For FY 2012-13, there was no exemption limit for LTCG if STT was paid. However, from FY 2018-19 onwards, the exemption limit of ₹1 lakh per year for LTCG applies.
### **4. Steps to Follow for Tax Filing**
#### **a. **Prepare the Capital Gains Statement**
- Use the transaction details to prepare a statement of capital gains. Include all purchases and sales, calculate the gains, and categorize them as STCG or LTCG.
#### **b. **File Income Tax Return**
- Based on the capital gains calculated, file the Income Tax Return (ITR). Use **ITR-2** if there are capital gains.
#### **c. **Include TDS Details**
- Include the TDS of ₹39 under section 194H in the return. It will be considered against your total tax liability.
### **5. If Profit & Loss Statement is Missing**
If a Profit & Loss statement is not available, you can still calculate tax based on the transaction statement provided. Here’s how:
- **Track Individual Transactions**: Calculate profit or loss for each transaction using purchase and sale details.
- **Summarize**: Aggregate the results to find total profit or loss for the year.
### **6. Actions to Take**
- **Respond to the Notice**: Provide the necessary details and calculations to the tax department.
- **File the Return**: If the return for FY 2012-13 has not been filed, file it as soon as possible with the accurate details of capital gains.
- **Consult a Tax Professional**: If you face difficulties, consult a tax professional to ensure compliance and correct tax calculations.
### **Summary**
- **Calculate**: Determine profit or loss from share transactions.
- **File**: Submit the ITR for FY 2012-13 with details of capital gains.
- **Include TDS**: Reflect TDS on the return and ensure all details match.
By following these steps, you should be able to resolve the notice issue and correctly calculate and report your capital gains.
### **1. Understanding the Notice**
The notice is related to the sale and purchase of equity shares, and it highlights the following:
- **STT-01**: Purchase of equity shares in a recognized stock exchange.
- **STT-02**: Sale of equity shares settled by actual delivery or transfer.
- **STT-03**: Sale of equity shares settled otherwise than by actual delivery or transfer.
### **2. Calculate the Profit or Loss**
To determine the taxable profit or loss, you need to follow these steps:
#### **a. **Collect Transaction Details**
- Obtain the detailed statement from the broker (Angel Broking Pvt Ltd) that shows all the transactions of buying and selling shares, including purchase and sale dates, amounts, and STT.
#### **b. **Determine Purchase Price and Sale Price**
- Identify the purchase price and sale price for each transaction. The profit or loss for each transaction is calculated as:
\[
\text{Profit or Loss} = \text{Sale Price} - \text{Purchase Price}
\]
#### **c. **Summarize Transactions**
- Sum up all the profits and losses from individual transactions to get the total profit or loss for the financial year.
### **3. Calculate Taxable Income**
#### **a. **STT and Tax Implications**
- **Equity Shares**: Gains from the sale of equity shares where STT is paid are classified as long-term or short-term capital gains depending on the holding period:
- **Short-Term Capital Gains (STCG)**: If the shares are held for less than 1 year. Taxed at 15% (plus applicable surcharge and cess).
- **Long-Term Capital Gains (LTCG)**: If held for more than 1 year. Taxed at 10% without indexation benefit or 20% with indexation benefit.
#### **b. **Exemption Limit**
- **STCG**: There is no exemption limit; STCG is taxed directly.
- **LTCG**: For FY 2012-13, there was no exemption limit for LTCG if STT was paid. However, from FY 2018-19 onwards, the exemption limit of ₹1 lakh per year for LTCG applies.
### **4. Steps to Follow for Tax Filing**
#### **a. **Prepare the Capital Gains Statement**
- Use the transaction details to prepare a statement of capital gains. Include all purchases and sales, calculate the gains, and categorize them as STCG or LTCG.
#### **b. **File Income Tax Return**
- Based on the capital gains calculated, file the Income Tax Return (ITR). Use **ITR-2** if there are capital gains.
#### **c. **Include TDS Details**
- Include the TDS of ₹39 under section 194H in the return. It will be considered against your total tax liability.
### **5. If Profit & Loss Statement is Missing**
If a Profit & Loss statement is not available, you can still calculate tax based on the transaction statement provided. Here’s how:
- **Track Individual Transactions**: Calculate profit or loss for each transaction using purchase and sale details.
- **Summarize**: Aggregate the results to find total profit or loss for the year.
### **6. Actions to Take**
- **Respond to the Notice**: Provide the necessary details and calculations to the tax department.
- **File the Return**: If the return for FY 2012-13 has not been filed, file it as soon as possible with the accurate details of capital gains.
- **Consult a Tax Professional**: If you face difficulties, consult a tax professional to ensure compliance and correct tax calculations.
### **Summary**
- **Calculate**: Determine profit or loss from share transactions.
- **File**: Submit the ITR for FY 2012-13 with details of capital gains.
- **Include TDS**: Reflect TDS on the return and ensure all details match.
By following these steps, you should be able to resolve the notice issue and correctly calculate and report your capital gains.
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