16 July 2008
A person enters in to business on 1st June,2007 for trading in shares and futures in NSE. He incurred loss in shares Rs.3000 and in future Rs.12000. His total turnover is around Rs.60,00,000 Is he liable to audit his account? Other details are as follow: Individual Age 20 Male Shares turnover Rs.8,00,000 Future turnover Rs.52,00,000 (Future turnover includes Buy and sell of Nifty 10 times only)
16 July 2008
No, he is not required to get his accounts audited for the purpose of Tax Audit u/s 44AB of the IT Act.In case of future trades the total sum of net results of contracts , whether +ve or -ve, is taken into account to analyse the limit of Rs 40 lacs for Tax Audit. In the instant case, the delivery turnover is 8 lacs and the turnover for future contracts,as discussed above, if less than 32 lacs, the assessee will not be required to get his acs audited.
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