13 September 2023
Dear Sir, My question is suppose I am salaried person and my income is above the exemption limit of Rs.2.5 Lakh and suppose during the full financial year If I have done only one intra day trading and suppose the profit is less than 6 % then do I come to Tax Audit although the turnover is very low. I ask with the following example. Suppose I purchase the 500 share of Indian Oil @ Rs.100 and sold intraday @ Rs.100.10 so my profit will be Rs.50/- this income will be clubbed into my income @ applicable tax slab. Now during full financial year I have done this transaction only then do I have to undergo tax audit as my taxable income is above exemption limit say Rs. 14 Lakh from salary ??
as I have heard that If profit from Intraday Trading is declared less than 6% and Total Income exceeds Basic Exemption Limit When these 2 conditions are satisfied, Tax Audit will be applicable Is this true ? If this is true then I should avoid intra day as it attracts tax audit. Please reply at the earliest.
13 September 2023
Ignore such a small transaction in filing ITR. File ITR 1. Tax audit not applicable for such small transaction. Avoid intra day trading.
14 September 2023
Thank you sir for your reply. Is there any Tax Audit obligation for individual doing only delivery based share trading. I mean any limit for such audit is mandatory for service class individual doing job ? Pl reply sir.
CAclubindia
