is tax audit prescribed u/s44AB is necessary in the case of an individual who earned a net profit of Rs.2 lacs (i.e loss of Rs.20 lacs and Rs.22 lacs profit resuleing in net profit of Rs.2 lacs) in F&O transaction in shares? i have heard that for the purpose of calcluating limit of 40 lacs, both, profit as well as loss made are considered. In my case profit of Rs.22 lacs + Rs.20 lacs loss= Rs.42 lacs gross receipt. Is it so?
6 Replies
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 25 July 2010
Asseming that u r talking about PY 2009-10.
If u'r gross sale, gross receipts or turnover exceeds Rs.40 Lakhs (till AY 2010-11) and Rs. 60 Lakhs (for Ay 2011-12), u have to first see whether your sale of scriptts in PY 2009-10 exceeds Rs.40 lakhs. if it is so, u required to get tthe books of accounts audited from CA as shown below.
u are required to get u'r accounts audited under sec 44AB on or before 30th september of the AY and should furnish the return thererbefore. Otherwise for not getting the accounts audited, AO may levied penalty under IT act upto max of Rs.1 lakh.
CMA. CS. Sanjay Gupta
("PROUD TO BE AN INDIAN")
(114225 Points)
Replied 25 July 2010
Yes you are correct tax audit is required as per logic mentioned by you.
Also check this link---
https://www.cnkindia.com/knowledge_centre/accounting_and_taxation_of_derivatives.asp
nirav
(Employee / Student)
(87 Points)
Replied 25 July 2010
If you say you earned profit of 22lac then there are chances that you have exceeded turnover of sales of Rs.40 Lakhs (till AY 2010-11) or Rs. 60 Lakhs (for A.Y. 2011-12). and you become eligible for tax audit..
pls check your turnover and compair it with limits of Rs.40 Lakhs (till AY 2010-11) or Rs. 60 Lakhs (for A.Y. 2011-12) if it exceeds limit then you are eligible for tax audit.
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 25 July 2010
| Originally posted by : Manoj B. Gavali | ||
 |
Asseming that u r talking about PY 2009-10. If u'r gross sale, gross receipts or turnover exceeds Rs.40 Lakhs (till AY 2010-11) and Rs. 60 Lakhs (for Ay 2011-12), u have to first see whether your sale of scripttts in PY 2009-10 exceeds Rs.40 lakhs. if it is so, u required to get tthe books of accounts audited from CA as shown below. u are required to get u'r accounts audited under sec 44AB on or before 30th september of the AY and should furnish the return thererbefore. Otherwise for not getting the accounts audited, AO may levied penalty under IT act upto max of Rs.1 lakh. |
 |
so SEE PROVISION FOR YOUR CASE AS ABOVE
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 26 July 2010
| Originally posted by : CMA. Sanjay Gupta | ||
|
|
Yes you are correct tax audit is required as per logic mentioned by you. Also check this link--- https://www.cnkindia.com/knowledge_centre/accounting_and_taxation_of_derivatives.asp |
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