Regarding speculative transactions and taxability
This query is : Open
13 July 2019
Assessee is having Salary income and also has engaged in Intra day trading in shares (Speculative transaction). The details are as follows:-
1. Salary Income - Rs.6,50,000
2. Speculative transaction details:-
Sale value - Rs.3,98,995, Purchase value - Rs.3,99,374. Speculative Loss - Rs.379.
Turnover - Aggregate of the Positive and Negative difference - 2462.
Turnover has not exceeded 1 crore. Turnover less than 1 crore and profit less than 6%.
1. Whether this transaction will be liable to Tax Audit on account of profit less than 6%?
2. Suppose the assessee is willing to declare 6% profit, then on which amount this 6% is to be calculated? Whether on Rs.3,98,995 or Rs.2462 (i.e aggregate of the Positive and Negative difference)
1. Salary Income - Rs.6,50,000
2. Speculative transaction details:-
Sale value - Rs.3,98,995, Purchase value - Rs.3,99,374. Speculative Loss - Rs.379.
Turnover - Aggregate of the Positive and Negative difference - 2462.
Turnover has not exceeded 1 crore. Turnover less than 1 crore and profit less than 6%.
1. Whether this transaction will be liable to Tax Audit on account of profit less than 6%?
2. Suppose the assessee is willing to declare 6% profit, then on which amount this 6% is to be calculated? Whether on Rs.3,98,995 or Rs.2462 (i.e aggregate of the Positive and Negative difference)
13 July 2019
1. No, since income from business is less than the maximum amount which is not
chargeable to tax (loss), assessee being an individual,
2. Infructuous, in view of the above.
chargeable to tax (loss), assessee being an individual,
2. Infructuous, in view of the above.
14 July 2019
Is it not "total income which exceeds the maximum amount not chargeable to tax"?
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