Sai Prasadh (Investment advisor) (139 Points)
18 August 2015Dear Sir/mam
For the Year 14-15 i have any income of Rs 90,000 from speculation business.(Purchase 1,34,50,000 Sales 1,35,40,000)
When i typed it in the form, and made it ready to upload it is asking whether tax audit done or not, i selected the option no, since tax audit is not applicable to me since profit does not exceed one crore.
But it is not getting uploaded unless i select yes in the tax audit option.
kindly clarify
Deepak Gupta
(CA Student)
(15922 Points)
Replied 18 August 2015
1. In speculative transactions though the contract notes are issued for full value, the entries in the books of account are made only for the differences.
.
2. Accordingly, the aggregate of both positive and negative differences is to be considered as the turnover of such transactions.
.
3. Tax audit (sec. 44AB) applicability is based on turnover and not on profit.
Sai Prasadh
(Investment advisor)
(139 Points)
Replied 19 August 2015
Sir
all the puchase and sales are intraday trading and not delivery based. still i required tax audit?
Rahul Verma
(CA-Final)
(484 Points)
Replied 19 August 2015
Dear Sai
As per the section 44AB if income tax if u have turnover of Rs 1 Cr then u r required to have tax audit. Here section tell abut TURNOVER not PROFIT.
So as per my understanding u r required to have tax audit under section 44AB.
Rahul
Rashi Bajaj
(CA)
(752 Points)
Replied 19 August 2015
Tax audit is applicable only if the difference(profit or loss - absolute value) is > 1Cr.
There might be some cell unfilled due to which error is shown. The ITR utility cannot by itself decide whether tax audit is applicable or not. You might need help of a CA/Tax return preparer to correctly fill the form.
Sai Prasadh
(Investment advisor)
(139 Points)
Replied 19 August 2015
Dear Rashi bajaj
yes , i need to consult tax return preparer.
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