26 July 2008
A Share broker owning Bolt also doing Intra day Trading. can he is eligibal to show it as STCG where its turnover exceeds limit prescribed u/s 44 for Tax Audit.
Whether he comes under the ambit of tax Audit u/ 44 AB and to treat as business income.
26 July 2008
A share broker is executing trades on behalf of its clients. It is the amount of brokerage which in case is 40lac or more that he is required to get his account audited u/s 44AB. On the other hand, if he is doing proprietory trades in that case the limit of 40 lacs for turnover is also to be considered. In case of trades in F&O segment again the Net profit or loss from contracts may be summed up to calculate the turnover. Also, the broker may treat some of its purchases as investments which will not be taken in the figure of turnover. In case of INTRA DAY trades it is always a business activity and can not be treated as ST Capital Gain.
CAclubindia
