Very urgent

This query is : Resolved

amitoza (Querist)
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14 January 2014 one of my friend has received a notice from income tax..relation to share trading in 2008-9..she had opened an account with a leading broking firm.and she had incurred a loss of 18000. now she has received a notice where the IT has impose penalty of rs 20000..
as she was filing her own return as she was not comming under taxable income.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 January 2014 How did your friend respond to the earlier notice?? That is important, you need to respond to the earlier notice and the notice for penalty providing income computation and demonstrating that no taxable income earned and accordingly no return was filed.

Where she already has filed return, you need to check the reason for levy of penalty and accordingly respond to the same.

amitoza

amitoza (Querist)
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14 January 2014 thanks for ur quick reply..

they have ask the follwing things.
1) trancastion of value more than 20000 for 2008-9 with complete details
2 if your income is not taxable from where u got the money for trading ....

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 January 2014 1. given that there is loss in 2008-09, there is no harm in providing the details

2. you need to check what was the peak investment during the year and then ask your friend about her sources. absence of taxable income is not a problem. what you need to check is whether the accumulated money and gifts received from relatives, if any, cover for the the peak investment or not.