I would like to know whether there is any specific criteria for tax Audit for the person who buy and sell shares on a large scale (say daily base of 20 lacs )
4 Replies
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 28 January 2008
Vinay buy and sell shares are covered in the speculation. One income/Loss is always covered under only one head
parthasarathy
(Practising, C.A)
(188 Points)
Replied 29 January 2008
Hi,
Income from Speculation business is an income under head :Profits and gains of Business or Profession",
As per Section 44AB, "Assessee carrying on any business where total sales/turnover/gross receipts exceeds Rs.40 lakhs" is liable for tax Audit.
Speculation business is covered in the phrase "any business". Hence if you deal in share trading, i.e buying and selling of shares, in intra day without taking delivery, and your gross turnover exceeds Rs. 40 lakhs, you are liable for Tax Audit U/s 44 AB.
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