An individual has invested a certain sum with a Portfolio Management Service. The profit from share transactions carried out by the portfolio management service (on behalf of the individual)is being offered under the head “business income” as the transactions are mainly in nature of trading in shares.
I would like to know whether tax audit u/s 44AB of the Income Tax Act would be applicable to the individual (assessee) as the turnover of share transactions (carried out by the PMS on behalf of the individual) exceeds Rs. 2 crores? Are there any case laws in this matter?
31 July 2012
yes if it is in the nature of Business income Tax audit will be applicable U/s 44ab but will exclude the Transaction of shares which are treated as capital assets
CAclubindia
