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praveen mishra (Querist)
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01 January 2014 My company is registered in jan,2013
is it compulsory to close books of accounts on 31.03.2013 for income tax purpose

Pranitha

Pranitha (Querist)
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01 January 2014 My client had done a turnover of Rs.125 lakhs on a purchases of Rs.145.00 lakhs and incurred a loss of Rs.20.00 lakhs . He did not taken delivery of shares. He has to file his income tax returns. In Form NO.ITR-4, whether I have to fill gross turnover of Rs.125.00 lakhs as sales and Rs.125 lakhs as purchases or loss of Rs.20.00 lakhs in the column under sales called " profit on sale of securities on which STT is paid", to avoid penalty under Sec.271B. He is not intending to get it audited under Sec.44AB of I.T. Act. More over the Guidance note issued by ICAI says that the aggregate of loss/ or profit shall be adopted as turnover in case of derivatives (futures & options in securities) sales where no delivery is taken.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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01 January 2014 @ praveen - yes it is compulsory to close books of accounts.

@ pranitha - as it is an intraday transaction it is sepculative in Nature therefore only the aggregate profit & loss amount will be considered for turnover
but has to maintain books of accounts

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 January 2014 for computation of turnover, you need to add the net amount of each transaction ie if the loss on one transaction was Rs 10 and gain on second transaction was Rs 15, then turnover shall be Rs 25 and no Rs 5.