27 May 2008
sir, i have 1000 shares of satyam computers @rs 500 means total delivery in my account is rs 5 lacs. if i sold 1000 shares at higher rate say 520 and then recover at 500 then total sales in my account is 520000. if same entry repeated means sold at higher rate and recover at low prices then after repeating 8 times my total sales exceeds 40 lacs but my intial totol investments only 5lacs. i have only repeated the entry . whether i falls under sec 44AB for tax audit or not YES MEANS REPURCHASE. YES TAKING PHYSICAL DELIVERY
28 May 2008
The Nature of repetitive Transctions of Shares indicates intention of earning profit and as Turnover Exceeds Rs.40 lacs you are liable for Tax Audit u/s 44ab.