Hi All,
One of My client having only salary income has made loss in F&O segment of around 5 lacs with turnover not crossing permissible audit limits. Is he liable for audit u/s 44AD as his profit margin is less than 8%.
Nilesh (Assistant Manager - Finance) (27 Points)
26 June 2014Hi All,
One of My client having only salary income has made loss in F&O segment of around 5 lacs with turnover not crossing permissible audit limits. Is he liable for audit u/s 44AD as his profit margin is less than 8%.
Nikhil Kaushik
(Fellow CA)
(85761 Points)
Replied 31 July 2014
yes. tax audit shall be applicable in this case, if he has other incomes exceeding Rs 2 lakhs
DrSANGITA PHD MBA(usa)CACSCWA
(President Finance & Taxation)
(405 Points)
Replied 07 August 2014
Incase of F & O trading the T/o for Tax Audit will be calculated by taking togather the Total of Profit & Loss (both) made during the year where this Gross Total exceeds the Tax Audit Limit specified under 44AB