02 December 2013
an individual who trade in share & derivative for self & others.his turnover is 3 crore ,whether he comes in tax audit or not & also give reason with section ?
02 December 2013
There is no harm if he gets his accounts audited in the absence of full knowledge as regards what constitutes turnover or gross receipt in his case. . A person trading in shares in his own account name- ------------------------------------ If turnover exceeds Rs. 1 Crore he is required to get his accounts audited. . A person trading in F&O in his own account name- ------------------------------------ If turnover exceeds Rs. 1 Crore he is required to get his accounts audited. Turnover in such a case means a total of Option premium paid, option premium received, profit in derivatives & Loss in derivatives. . A person Trading for others: ----------------------------- It is not allowed unless he is a registered sub-broker of a Main Broker and duly registered by SEBI for the purpose. Turnover in this case means commission or other incentives if any earned by him. . If he is doing all these- --------------------------- Make a total of relevant heads and decide accordingly.
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