KJS (NA) (102 Points)
07 December 2012In case an individual resident, exceeds 60L as turnover in buying/selling of equity in secondary markets ..... is he/she supposed to keep audited accounts of the same?
The first question on this page deals with the same issue but the answer is unclear ..... https://www.capitalmarket.com/capitalmarket/cmedit/story11-37.asp?SNo=521310
Can a CA please guide?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 07 December 2012
if you are doing share trading & the turnover exceeds 1crore mark then audit will be required.
KJS
(NA)
(102 Points)
Replied 07 December 2012
Any particular section of the Income Tax Act that bears this out?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 07 December 2012
Section 44AB of the I-T mandates for Tax Aduit if the turnover from business crosses the 60lacs (1crore From Apr13) thershold and for profession the gross receipts cros teh 15lacs threshold. Please refer teh below link for your information:
KJS
(NA)
(102 Points)
Replied 06 March 2013
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Can investment turnover be equated to a business turnover?
Originally posted by : Giridhar S Karandikar |
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Section 44AB of the I-T mandates for Tax Aduit if the turnover from business crosses the 60lacs (1crore From Apr13) thershold and for profession the gross receipts cros teh 15lacs threshold. Please refer teh below link for your information: https://law.incometaxindia.gov.in/DIT/Income-tax-acts.aspx |
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Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 06 March 2013
No It cannot. because you are holding the money in the form of money to earn interst and not in teh ordinary course of business.
Moreover the 60lacs threshold now s1cr is in regard to the turnover as shown in the P&L account. Invesements are shown in the B/S and hence cannot be subjected to tax audit.
CA.D.RAGAVAN
(CHARTERED ACCOUNTANTS)
(219 Points)
Replied 06 March 2013
First of All, there is Trading Activity in the Secondary Market. Buying & Selling with the Primary Intention as Investment Not Covered.
If it is purely Trading Activity, the transactions invoving taking delivery of Scrips considered for Turnover. The Intra Day Transactions, only the Profit or Loss shall be considered. The Sale Value of Shares Covered without taking Delivery of the Scrips not taken for Turnover.
If the Turnover Calculated above Exceeds Rs.60.00 Lakhs For Assessment Year 2012-2013 and Rs.100.00 Lakhs For Assessment Year 2013-2014, the You have to maintain Books of Accounts and Subject them to Audit U/s.44AB of the IT Act
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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