tax audit

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hemlata (Querist)
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12 June 2010 assesee has one business of retail trade and he also deals in shares in future market.his shares turnover exceeds Rs. 40lacs but his retail busines is closed after running for three months.so whether we have to audit both business or only one which exceeds turnover

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 June 2010 The absolute value of gain or loss in future's trading of shares are to be considered as turnover of that business. Then the turnover aforesaid is more than the threshold limit of tax audit, that account has to be audited under section 44AB. If the assessee opts for presumptive taxation turnover of retail business will not be considered for tax audit. Otherwise turn over of both business added together if crosses the limit, both accounts are to be audited under section 44AB if the assessee is an individual.