[DigitalOne]

Originally Posted by vivek_lo

Last week we received a SMS from IT department stating that high value transaction have been noticed in AIS, but not reported in the return. They asked to respond in the compliance portal or revise the return.

I got a similar SMS. Please log into the IT portal --> AIS portal and follow the instructions to give feedback on the transactions. For me the feedback required was for the "Income from other sources" like bank interest. I selected "The Information is correct" as I had accounted for all this in my IT return. It took 10 minutes. It is very likely the same for you. Highly unlikely it is for the real estate purchase transaction that you did; that would reflect in the sellers' IT return.

[vivek_lo]

Originally Posted by DigitalOne

I got a similar SMS. Please log into the IT portal --> AIS portal and follow the instructions to give feedback on the transactions. For me the feedback required was for the "Income from other sources" like bank interest. I selected "The Information is correct" as I had accounted for all this in my IT return. It took 10 minutes. It is very likely the same for you. Highly unlikely it is for the real estate purchase transaction that you did; that would reflect in the sellers' IT return.

When I checked with an auditor he also told me that many people are getting the SMS to confirm if the transaction is by them, since there were cases of incorrect reporting in AIS. But in this case, the question was: There was high value transaction and the same is not reported in ITR. As you rightly said, the tax is paid by the seller, but there is a TDS by buyer and paid to the IT. This is being reflected in AIS.

[binand]

Originally Posted by DigitalOne

I selected "The Information is correct" as I had accounted for all this in my IT return.

I also got this SMS/Email, and I also did what you did (selected "Option A: Information is correct"). But I still have some questions.

1. If you have already accounted for this elsewhere in your IT return, it seems to me the correct response should be "Option D: Information is duplicate/included in other information", is it not?

2. Even after selecting Option A, the colour coding of the cell is different for different rows (example below). Not sure what to make of it.



3. Even after providing Option A for all, I still get in my Compliance Portal, "Partially Submitted" only - and I can't make out what I'm missing.

4. In one case (related to the ill-fated FT India Short Term Income Plan) I accounted the CG in long-term but was reported to AIS as short-term. The amount is very small (CG = 12K-ish), should I bother filing a revised return?

[anandtheleo]

Originally Posted by binand

3. Even after providing Option A for all, I still get in my Compliance Portal, "Partially Submitted" only - and I can't make out what I'm missing.

Please check if you have submitted the feedback for the query raised, till I submitted for the feedback question it was showing as "Partially Submitted" for me.

[vivek_lo]

Originally Posted by vivek_lo

When I checked with an auditor he also told me that many people are getting the SMS to confirm if the transaction is by them, since there were cases of incorrect reporting in AIS. But in this case, the question was: There was high value transaction and the same is not reported in ITR. As you rightly said, the tax is paid by the seller, but there is a TDS by buyer and paid to the IT. This is being reflected in AIS.

I tried to respond and it took to AIS view, where, amongst the pull down options, I could select that "Information is correct" and submitted. The status shows as submitted, but essentially I could not explain why this was not reflected in ITR. There is no provision to provide any textual answer. I guess there is going to be a follow up query- If the high value transaction information is correct why this was not reported in the ITR?
If any of you know if there is a provision to provide/update text answer, please enlight.

[praveen789]

Originally Posted by binand

3. Even after providing Option A for all, I still get in my Compliance Portal, "Partially Submitted" only - and I can't make out what I'm missing.

I also had the same issue. The portal does not show a list longer than 100 items. What you need to do is download the AIS utility from the Resources section and the json file of the AIS. Once you use the offline AIS utility, you will see the remaining items that were tagged as 'Expected'. Once this step is completed, export the json and upload it back to the portal and you should see everything submitted.

[PearlJam]

An income tax question for the experts here:

What is the tax to be paid on short term stock trading by an "investor"?

One of my colleagues, in his personal capacity, has written some kind of an app that does trading in stocks. That app does a lot of trades with relatively high value every day. Not day trading, but very short term trades across few days - so most of it falls under STCG that is taxed at 15%.

It's a different story that he's losing money overall, since he's trying to apply logic to stock prices that are obviously chaotic in the short term. Also, this small time app is trying to compete with algorithmic trading software from the biggies, which makes it an even bigger losing proposition. But anyway, these are off topic.

Now apparently, as an "investor", if you do a large number of trades (how large, is the big question here), you comes under the head of "trader" and not an "investor". Which means you don't come under STCG/STCL of 15%. Is that true? If so, how do they decide who is an investor, and who is a trader?

[mtripathi13]

Originally Posted by PearlJam

An income tax question for the experts here:

What is the tax to be paid on short term stock trading by an "investor"?

Now apparently, as an "investor", if you do a large number of trades (how large, is the big question here), you comes under the head of "trader" and not an "investor". Which means you don't come under STCG/STCL of 15%. Is that true? If so, how do they decide who is an investor, and who is a trader?

Dear Sir,

This question is not very simple to answer. However, let us hear from the horse's mouth. I enclose herewith the income tax department circular no 6/2016 on the said subject.

I hope you get the answer to your query.

Regards
Manish

[rajesh1868]

I have sold a few RSU's of my US listed company. How much tax do I need to pay for this in India?

[mtripathi13]

Originally Posted by rajesh1868

I have sold a few RSU's of my US listed company. How much tax do I need to pay for this in India?

Hello Sir.
Stocks of US listed company shall be treated as unlisted shares for Indian income Tax purposes. Accordingly if held under 24 months, they will be short term. Other wise long term. Long term rate is 20 percent with indexation. Short term at slab rates.

Regards
Manish

[Mahesh Babu]

Requesting a help from our forum members. I am expecting to receive payment from a 'chitty' with Kerala State Financial Enterprises next month. I contacted the branch manager to enquire about the income tax implications if any but the only response I could get was "No sir, it is not taxable, only 18% GST on foreman's commission needs to be paid", but no mention of exemption under any income tax rule, section etc. Since the amount about to be deposited in my SB account is above 10 lakhs it will be reported in my AIS by my bank, but it is not my income since I have been paying instalments to KSFE for this over several years. How should I report this amount in my IT return? Can anyone please provide any further information or link to official rules regarding the Income tax liability on receiving the proceedings from a chit fund. Thanks in advance

[volkman10]

The Income Tax department has informed taxpayers that its services on the e-filing portal will be temporarily unavailable from 2 pm on Saturday, February 3, 2024, to 6 am on Monday, February 5, 2024, due to scheduled maintenance activities.

Expect changes (and related glitches) as improvements are being carried out.

During the reading of the Interim Budget statement, emphasized the government's efforts to improve taxpayer services.
Highlighted the transformation of the age-old jurisdiction-based assessment system with the introduction of faceless assessment and appeal, aiming to bring greater efficiency, transparency, and accountability to the process.
Further mentioned the positive impact of recent initiatives such as the introduction of the updated income tax returns, a new Form 26AS, and prefilling of tax returns.
These measures have significantly simplified the process of filing tax returns, leading to reduction in the average processing time from 93 days in the year 2013-14 to just 10 days in the current year.
Assured that these improvements contribute to faster processing of refunds, ultimately benefiting taxpayers.

Link:

[Habanero City]

Originally Posted by Habanero City

Similar case for my wife too, but it was for the AY 2007-08 and we have several documents explaining the wrong demand.
But there is no response for all these years.
The last response was re-submitted about 2 years ago in the new web site of the department and it was acknowledged by an E-mail.
After that there is no response.
I am not ready to pay for something that is not due.

Also in my mom's case, we accepted the demand as it was a small number (3 digits) thinking just like you.
But the mistake we made was while making the payment you have to acknowledge that the demand is CORRECT which makes the department to wake them from deep slumber.
So in the next IT filing this old demand was adjusted against the refund due (disregarding the payment that we had made).
Finally we ended up paying twice and we gave up to take any further action.

My suggestion is to leave it as it is if you have sufficient evidence to defend in case of any action in future.
Otherwise see if you can just accept the demand without making the payment so that it can get adjusted in the next IT processing with the refund.

With regard to interest calculation, they are purposely being vague and in our case too the interest was not calculated which means that even they are not sure and just fishing for something.

I am not an expert but just wanted to share my harrowing experience with adversarial process adopted by the department.

Quoting myself:
Finally some relief in the budget speech "Government to withdraw petty, non-verified, non-reconciled or disputed direct tax demands to reduce frivolous tax litigation and reduce burden from the tax department as some of the demands are 40 to 50 years old."

Hoewever this is limited to tax demands up to INR 25,000 for the period before FY 2010 and up to INR 10,000 for the periods between FY 2011 and 2014.
Finally some sense prevailed and have to wait and see how this pans out.

Incredible to see tax demands for 50 years !!

[SilentEngine]

A query related to capital gain related to residential house property sale.

Scenario is this - House constructed in 1992 was sold recently. Capital gain calculation requires Fair Market Value (FMV) on April 1, 2001 to be taken as acquisition cost and then apply indexation based on CII table. Now the question is, how to arrive at FMV on 2001?

There's also some renovation carried out on the above property twice after 2001 (but there isn't any evidence like documents etc that can be produced).

What is the way to go about this?

[mtripathi13]

Originally Posted by SilentEngine

A query related to capital gain related to residential house property sale.

Scenario is this - House constructed in 1992 was sold recently. Capital gain calculation requires Fair Market Value (FMV) on April 1, 2001 to be taken as acquisition cost and then apply indexation based on CII table. Now the question is, how to arrive at FMV on 2001?

There's also some renovation carried out on the above property twice after 2001 (but there isn't any evidence like documents etc that can be produced).

What is the way to go about this?

For getting FMV as on 1/4/2001, you need to take the services of a IBBI approved registered valuer and get the report from him.

Regards
Manish