CA Shirish Prakash Biman (Shirish Biman & Company) (129 Points)
20 August 2010Plz tell me the solution of the following Question:
"If intraday trading exceeds Rs.40 lacs, is it liable to Tax Audit u/s 44AB of Income Tax Act, 1961?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 20 August 2010
In case of intra day trading turnover for tax audit is considered as the sum of positive and negative differences i. e. sum of profit + loss.
For eg: if you have profit of Rs. 25 lacs and loss of Rs. 20 lacs in day trading then turnover will be considered as Rs. 45 lacs and liable for audit u/s 44AB.
Dheeraj
(Learner)
(1100 Points)
Replied 21 August 2010
AGREED WITH MR ADITYA
IN CASE OF JOBBING
TAKE THE DIFF ONLY NOT THE AMOUNT OF PURCHASE & SALE
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