Lalit Nyati (Student) (487 Points)
25 December 2014Please correct my understanding about applicability of Sec 44AB on business of dealing in share and securities.
difference between buy and sale would be consider as 'turnover'.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 25 December 2014
(A) Speculative transaction:
- The aggregate of both positive and negative differences is to be considered as the turnover.
.
(B) Derivatives, futures and options:
- The total of favourable and unfavourable differences shall be taken as turnover.
- Premium received on sale of options is also to be included in turnover.
- In respect of any reverse trades entered, the difference thereon, should also form part of the turnover.
.
(C) Delivery based transactions:
- The total value of the sales is to be considered as turnover (in case such transactions are in the course of business).
.
[To read in details, refer Para 5.14 of the Guidance Note on Tax Audit u/s 44AB (Revised 2014 Edition) issued by the ICAI.]
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