A person is having share transactions which involve day trading in shares, futures and options. The stocks are held for 2 or 3 days at the maximum. The transactions are to the tune of crores during 2007-08.
1. How we will determine whether tax audit is required?
2. Further he is having a properitory business whose turnover is around 5 lacs for the year. If he is covered under tax audit as per point 1 then whether this business will also require tax audit.
3. What is his liability to deduct TDS if he is covered under tax audit as per point 1.
4. How his account books including share income will be written? shall the books be maintained separately for both the business of shall they be clubbed. And especially what will be the entries related to share income.
If Anybody is having knowledge of taxation related to share income then please suggest.
Regards
CAclubindia
