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Intraday trading

himanshi (student) (80 Points)

21 November 2016

i have a query- whether provision of tax audit is applicable in case of intraday trading (non delivery based share trading) having loss and turnover doesn't exceed Rs. 1 Crore?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171372 Points)
Replied 22 November 2016

No, if that be only activity of the assessee and no other business.

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himanshi (student) (80 Points)
Replied 22 November 2016

thank you sir. Sir assessee is salaried employee liable to tax on his salary and this intraday trading business only. But i have a doubt whether provision of sec 44AD is applicable or not as there is a loss in his share trading.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171372 Points)
Replied 22 November 2016

Section 44AD is applicable to speculative business, but you have to declare at least 8% profit margin.

Otherwise maintain books and file ITR 4.

himanshi (student) (80 Points)
Replied 22 November 2016

sir whether his books of accounts are liable for audit if he doesn't declare atleast 8%profit margin

himanshi (student) (80 Points)
Replied 22 November 2016

sir whether his books of accounts are liable for audit if he doesn't declare atleast 8%profit margin

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171372 Points)
Replied 22 November 2016

Actually, audit is not mandatory by filling ITR 4, books maintained, P&L + BS declared; but practically its always advisable in such cases, as audit (is economical) will help to minimise assessment procedure.