I have Certain Queries in one of my Client’s Return which are as follows.
Quary: 1. My Client had Traded in Nifty (NSE- F&O) during the Financial Year 2009-10.
Total Sales of is Rs.2,83,95,393 & Total Purchase is Rs.2,84,23,361. Total Loss is Rs.27,969. My Query is,
1)Whether to treat these Transactions as Business income or Speculation income.
2)If it is Business income then whether to rely on Turnover basis or total profit basis for Tax Audit Purpose.
Quary: 2 My client has traded in Commodity through the party who is a member of National Multi Commodity Exchange. Total Turnover of the Business is Rs.1,20,74,963 & total purchase is Rs.1,16,74,913. Total Net Profit is Rs.3,99,423.
Whether to treat this transaction as Speculation Income or Business Income.
21 July 2010
For the purpose of determining the turn over of "futures and options" for tax audit purposes, the absolute value of profit and loss need alone be considered.
CAclubindia
