Turnover of a PVT Ltd Comp deals in Trading of Shares ?

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CA Manivel Manickam (Querist)
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23 September 2010 On the basis of turnover of company, firm, individual we decide weather it's fall under 44AB (Tax Audit cases) or not. One of my client's company deals with trading of shares. On what basis I consider weather its covered under 44AB or not. The only nature of business of the company is buying and selling of shares.

1.Can I consider the total seles value of shares as company turnover ?

2.Is there is any compulsion to me to show Short Term & Long Term capital gain in IT return ? (Business nature is Trading of shares)

If anybody have solution pls answer me...

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 September 2010 In case of delivery trading sales is considered as trading. In case of intraday & F & O it is profit + loss.

to decide between business income or capital gains u have to decide on a case to case basis looking into the quantum of transactions and period of holding.