Tax audit limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2014 What is the Limit for a individual share broker to attract tax audit provisions. Is it Rs.100 lacs reciept as broekrage or something else as he is not a professional ?

CA UMESH DULAL

CA UMESH DULAL (Expert)
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15 June 2014 for brokerage service, provision of 1.00 cr not applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2014 Then what is the limit for gross reciepts for getting tax audit done

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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15 June 2014 no limit

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2014 No limit ?? You mean every share broker has to get tax audit done whatever he earns. Or is it the Rs.25 lacks professional reciepts applicable ?

CA UMESH DULAL

CA UMESH DULAL (Expert)
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15 June 2014 If he is not professional, then 25 lacs do not come to picture.

plz clearly state his business module.

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2014 A normal stock broker B.com. running a proprietory firm earning brokerage on transactions done by his clients on his share terminal. Upto what brokerage in a year he is not required to get his accounts audited ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 June 2014 Dear Umesh,

not what basis are you suggesting that no limit is applicable?

dear querist,

the tax audit shall apply if the brokerage income plus any trading done on personal name exceeds Rs 1 cr.

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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15 June 2014 Most of stock broker are works sub broker under name of main broker. If this is a case then this business is franchise so no limit of 1 cr.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 June 2014 who told you this? any act or rule or CBDT circlar...whether you are sub-broker or not, your income is the relevant parameter..

CA UMESH DULAL

CA UMESH DULAL (Expert)
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15 June 2014 that's why i ask for his business model. Nikhil jee.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 June 2014 that is why i told you...broker or sub broker...or sub-sub broker...all what matters is the income booked by the person...thats it..

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