Shares Trading (Delivery based) - Tax Audit u/s 44AB
This query is : Resolved
12 April 2008
1. A parson is engaged into frequent trading (buying and selling- not as invesment) of share with turnover exceeding Rs.40 lakh in a year, should he get his accounts audited u/s 44AB?
2. Pl also suggest what would be the liability u/s. 44AB in a seperate case - if a persons Gross Turnover has exceeded Rs.40 lakh in a year IN INTRA-DAY TRADES, but the net receipt (total of difference of each intra-day Sale & purhcase) is 5-6 lakh.
3. Should the above be clubbed with the normal business turnover.
2. Pl also suggest what would be the liability u/s. 44AB in a seperate case - if a persons Gross Turnover has exceeded Rs.40 lakh in a year IN INTRA-DAY TRADES, but the net receipt (total of difference of each intra-day Sale & purhcase) is 5-6 lakh.
3. Should the above be clubbed with the normal business turnover.
12 April 2008
1 yes
3 both the businesses can't be clubbed.because one is a normal business & other is speculation.
3 both the businesses can't be clubbed.because one is a normal business & other is speculation.
12 April 2008
Thanks. Income from trading in Shares, and wef Asst Yr 2006-07 income from F&O also, is no more in "Speculation" category.
Further, I want to ask that Trading in Shares - in which there is no broking, no consultancy, no customer - is really a "Business".
Please review the suggestion.
Further, I want to ask that Trading in Shares - in which there is no broking, no consultancy, no customer - is really a "Business".
Please review the suggestion.
12 April 2008
1. The turnover for the mentioned case is Net amount. ie. Purchase value - Sale Value. If that exceeds 40 Lakhs, 44AB applies.
2. No 44AB
3.No. That is speculative Business
2. No 44AB
3.No. That is speculative Business
12 April 2008
Thanks for replies.
PLEASE NOTE MY IDEA:
1.Trading in Shares - in which there is no broking, no consultancy, no customer - is really a "Business" for the purpose of 44AB.
2. Income from trading in Shares, and wef Asst Yr 2006-07 income from F&O also, is no more in "Speculation" category.
Please review the suggestion.
PLEASE NOTE MY IDEA:
1.Trading in Shares - in which there is no broking, no consultancy, no customer - is really a "Business" for the purpose of 44AB.
2. Income from trading in Shares, and wef Asst Yr 2006-07 income from F&O also, is no more in "Speculation" category.
Please review the suggestion.
13 April 2008
44 AB applies in both the cases and second point mentioned by you is not a speculative business.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- SEC 54 OF IT ACT
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Form 26QB for TDS on property
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- RCM - commercial rent paid to URP under GST
- Payable outstanding for years disallowance
- GST Annual Returns filing due date
- Partnership Business Can start India (two partners one is Indian and OCI both are wife and Husband)
- TDS NUMBER SURRENDER
- Appeals vs Writ court -certain doubt
- Withholding tax applicabikity for foreign paymenttowqards physio therapy treatment
- Input credit reversal for the FY2023-24
- Regarding Form 15CA & CB
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
