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Is tax audit applicabile

K. N M Gupta (articleship) (94 Points)

11 July 2017

case-i

if a salaried person bought value 1,00,00,000 & sold value is 1,00,05,000, (IN INTRA DAY TRADING) then he get profit of Rs 5000. in this case is tax audit applicabile to him?

case-ii

if a salaried person bought value 1,00,00,000 & sold value is 1,00,05,000, (short term investor( buy & sale with in a year) then he get profit of Rs 5000. in this case is tax audit applicabile to him?

also pls tell the ITR FORM WHICH SHOULD BE FILED.( HAVING INCOME OF SALARIES, SAVINGS BANK INTEREST , TRADING IN EQUITY(SPECUILATION& SHORTTERM)

please advice.

THANKS IN ADVANCE

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10 Replies

neeraj gupta (1138 Points)
Replied 11 July 2017

both cases no. You can use ITR3.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 11 July 2017

Originally posted by : neeraj gupta
	both cases no. You can use ITR3.

How is it Sir...?

Also he get salary.... Then How is no...?

neeraj gupta (1138 Points)
Replied 11 July 2017

day trading (speculative business) turnover is 5k. Shares trading is capital gains doesn't trigger audit. Salary doesn't trigger audit. I may be able to answer you better if you can tell me why do you think, audit is required?

K. N M Gupta (articleship) (94 Points)
Replied 13 July 2017

THANKS

K. N M Gupta (articleship) (94 Points)
Replied 13 July 2017

THANKS &

Hi,

i written below full story. can you please answer 4 Questions

1) MY FREIND IS DOING JOB, SOME TIMES DO INTRADAY TRADING, & SHORTTERM TRADING .

so what is my doubt is his SALE VALUE IS 2,00,15,000, & buy value 2crores, so he get profit 15,000.on which stt paid,

so sale value & purchase value is higher even though he get profit only Rs.15000.( & same as in short term also)

is it come under turnover as per s.44ab.

2) is STT IS ELIGIBILE TO CLAIM?(for intraday& shortterm-if yes under which head)

3) IF FILE ITR-3 , then can he fillup BALANCE SHEET AND p& l, (he not yet prepared any thing_is it mandatory to file balanceshhet)

4)he paid interst Rs25,000 on the positons held (namely delayed payment charges i,e nothing but interest paid to broker) -Is eligibile to claim if yes under which?

LENTGHY QUESTIONS PLEASE HELP

THANKS IN ADVANCE

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neeraj gupta (1138 Points)
Replied 13 July 2017

Dear Mr KNM Gupta, I regularly trade in Future and Options. So I will tell you from my personal experience of filing.

1) No need of audit. Becuase turnover in day trading is sum of all the gains and all the losses (after converting to positive value). In your case the turnover is 15,000Rs hence under the audit threshold limit.

2) STT is eligible for claim only in intraday. In shortterm i.e 111A, the STT expenses are not claimable. This is because govt is already charging you lesser tax at 15% for shortterm and 0% for long term.

3)Yes he can fill Balance Sheet and P&L statement, if he is filing ITR3. However I would suggest you to fill ITR4 using presumptive scheme.

4) Yes this would be claimable as expenses. This should in P&L schedule under interest expense.

Hope that helps.

K. N M Gupta (articleship) (94 Points)
Replied 14 July 2017

thanks., &
last year filed itr2. with carriforward loss of 45k.(stcl)
now income consists salary.., speculative,shotterm gain.

so can I file now with presumptive.&claim45k..

further investment in open ended mutual funds -is it consider under tax savings

K. N M Gupta (articleship) (94 Points)
Replied 14 July 2017

if I go for presumptive, then can I claim interest paid to broker.,&stt on speculation.

neeraj gupta (1138 Points)
Replied 14 July 2017

Please put your last question on forum and get an answer just for that. In my view you can't claim any expenses once you use presumptive. but pls double check.