Whether tax audit applicable??

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Trupti K. Gangar (Querist)
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17 December 2018 HUF is doing investment activity even short term basis or intra day basis on equities...
ITO said tax audit is applicable since crossing turnover limit.
Can anyone guide on same and refer case law r explanation or section ??
Thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 December 2018 for intraday activities - yes, if the turnover exceeded Rs 1 cr. Refer to the guidance note on Tax audits for computation of turnover for such transactions. As for as other investment activities are concerned ie short term trading, you can show it as capital gains. such transactions won't be included in the turnover.

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