utsav (CA Final) (99 Points)
16 August 2019Hi All,
Please help explain if tax audit is applicable for below situation ? And what income tax return should be filed ?
1) Turnover from share trading (delivery+intraday) is less than 1 crore.
2) Profit from share trading (delivery+intraday) is 3% of turnover.
3) No books of accounts is being maintained.
4) Assessee has income from salary which is eligible to taxation.
Kapadia Pravin
(17259 Points)
Replied 16 August 2019
Jaydeep pedhadiya
(5 Points)
Replied 16 August 2019
Kapadia Pravin
(17259 Points)
Replied 16 August 2019
rama krishnan
(12239 Points)
Replied 17 August 2019
utsav
(CA Final)
(99 Points)
Replied 17 August 2019
Thanks for the responses. I have some further queries reading the responses:
1) If I show the delivery trades as STCG, then I'm getting a loss in my speculative income (intraday). Will tax audit be applicable for the speculation business since the turnover is under 1cr and the profit is also under 8% (actually it's a loss) ? I'm confused if this falls under tax audit requirement.
2) Also I don't maintain any books of accounts. I don't mind opting for presumptive scheme and showing income @ 8% of turnover, but it will only be a negative figure. Should I opt for presumptive scheme ? If yes, how to show profit with negative figure ?
3) Lastly, which ITR to be filed in my case ?
I basically want to avoid tax audit as it will only lead to more cost and time. But I also want to ensure my ITR and taxes are correct and as per statutory laws. Hence the confusion reading multiple IT sections. Thanks for the responses in advance.
utsav
(CA Final)
(99 Points)
Replied 17 August 2019
Thanks for the responses. I have some further queries reading the responses:
1) If I show the delivery trades as STCG, then I'm getting a loss in my speculative income (intraday). Will tax audit be applicable for the speculation business since the turnover is under 1cr and the profit is also under 8% (actually it's a loss) ? I'm confused if this falls under tax audit requirement.
2) Also I don't maintain any books of accounts. I don't mind opting for presumptive scheme and showing income @ 8% of turnover, but it will only be a negative figure. Should I opt for presumptive scheme ? If yes, how to show profit with negative figure ?
3) Lastly, which ITR to be filed in my case ?
I basically want to avoid tax audit as it will only lead to more cost and time. But I also want to ensure my ITR and taxes are correct and as per statutory laws. Hence the confusion reading multiple IT sections. Thanks for the responses in advance.
RAMAKRISHNAN R
(INCOME TAX OFFICER)
(1736 Points)
Replied 17 August 2019
CAclubindia
