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Share Trading turnover considered for Tax Audit

Pravin Mahadik (Practicing Cost Accountant) (78 Points)

06 June 2011

If Share trading is done on F & O then which turnover is applicable for audit.

Which turnover figure applicable for tax audit.

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6 Replies

KIYOSH (TAX CONSULTANT) (332 Points)
Replied 06 June 2011

difference between purchase & sale of particular contract. If it is loss than also add it in the gain. figure arrived so will be calcuated as turnover.

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M. N. JHA (CA) (8316 Points)
Replied 06 June 2011

Yes as kiyosh says. . . . Agreegate of diff. between purchase and sales amount weather profit or loss. . . . . Take an example:- you pur 1lot of reliance future @ rs. 3 lacs and sale it for rs. 3.25 lacs i.e. Your turnover was rs. 25000. . . . . Another example- you buy 1 lot of infosys at rs. 4Lac and sale it for Rs. 3.60 lacs i.e. Your turnover rs. 40000. . . . . . So your total turnover rs. 65000. . . . . . . . . , . . . . . . . . . . . . . . . . Tax audit become compulsory when total turnover(sum of gain and loss) exceeds rs. 60 Lacs. . . . . Thanks

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 06 June 2011

Originally posted by : KIYOSH
	difference between purchase & sale of particular contract. If it is loss than also add it in the gain. figure arrived so will be calcuated as turnover.

AGREED.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 06 June 2011

Originally posted by : KIYOSH
	difference between purchase & sale of particular contract. If it is loss than also add it in the gain. figure arrived so will be calcuated as turnover.