I had applied for the IPO of Senco Gold in the BHNI category, but was not allocated any shares. Still it is being displayed in my Annual Information Statement and it is adding up to the buy column in the TIS (Tax Information Summary).
My question is, that even though I was not allocated any shares(had applied via ASBA), why is this being reported to the AIS and increasing compliance for us? Is this legitimate or should we mark any feedback for this? Gross amount received and Gross amount paid cancels out each other anyway.
ITD have started mapping all the transactions in the AIS to track the financial information of a taxpayer at one place.
Here, since in an IPO, funds were added to bank account and blocked for 3 days, it means you paid to the company and got refunded back.
But because there was no allotment of shares, no capital gain tax would come into picture. However, ITD may ask for the source of funds in case your Income tax return for the respective financial year does not have sufficient source of income to justify these funds.
