Audit of accounts for stock traders

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2012 Respected experts
My total turnover(intrady cash+delivery+FNO) in stock trading in AY 2011-12 was around 15 Lac rupees. On the whole I made a loss of around Rs.10,000(20000 profit on delivery trades, 30000 loss in intraday) in stock trading.
I was told that if your profits are less than 8% of the turnover or you made loss, than you have to get the audit done.
My toal income for the year(rental from house property+bank interest) was around 1 lac, 20 thousands, hence below taxable income.
Was I wrong in not getting the audit done ?
If so what could be the consequences ?
Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2012 Presumptive taxation is applicable for BUSINESS. It is always argued that the kind of activities you are doing in the share market do not fall under BUSINESS and hence section 44AD is not applicable.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2012 Thanks for reply sir,
Which ITR form is to be filed in the above case ?

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Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2012 itr2 may be used.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2012 Thanks for reply sir,
Sir if number of transactions or frequency is very high, will it be considered as business ?
If considered business, will maintaining of books of accounts and getting audit done will be necessary even if total income for the year is only Rs. 1 lac 20 thousands ?