18 September 2010
stock market future trading is no more speculative income if Mr.x whose gross profit n loss in FnO market is more then 10 lack/ 40 lakh is it mandatory for him to prepare books/have tax audit if Mr.x challenge that its his Income from "income from other source" plz guide with reasons
19 September 2010
By virtue of proviso (d) to section 43(5) inserted by the Finance Act,2005 w.e.f 01/04/2006,eligible transactions in derivatives shall not be deemed to be a speculative transaction. In view of that, if the absolute value of the profit and loss exceeds Rs.40/- lakhs (now increased to Rs.60/-lakhs) tax audit of the accounts are mandatory.