21 August 2010
Dear sir, I am Individial self employed business man my personal name i file return but my turn over is not above 40 lakhs so i donot Audit my personal Account.
My query is that If i do trading delivery and futures abover 2 crore in my Account am i liable to Audit my Account. i have heard if i donot Audit i could be liable to pay find of 1,50,000/- or 0.5% of my trade value. pls inform me .. thanks.
21 August 2010
Your understanding is correct. Your accounts need to be audited under section 44 AB of the income Tax Act,1961 failing which penalty under section 271B of the said act attracts.
21 August 2010
Turnover in case of F & O and intraday trading is sum of positive and negative differences i. e. profit + loss.
In case of delivery trading turnover is actual sale of shares.
If the total of all exceeds Rs. 40 lakhs (in F. Y. 2010 - 11 Rs. 60 lakhs) then u are liable for audit u/s 44AB and failing to get ur boks audited will be liable for penalty u/s 271B upto Rs. 1 lakhs (from F. Y. 2010 - 11 Rs. 1.5 lakhs).