gupta (Accountant) (305 Points)
23 September 2016Dear All
One of my friend doing share trading ( sometimes day to day basis -- sometime monthly 15-20 times ) alongwith his regular full time job and his purchase & sales is nearabout 1 Cr . Now my question is --- is he required to audit his accounts compulsory or not.He has filed his I- Tax return ITR-2.
Waiting your reply
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177961 Points)
Replied 23 September 2016
As per the guidance note from ICAI ( section 5.12, page 23).
Check the net transaction taking losses also as positive; if exceeds 1 cr. audit will be required.(sec. 44AB)
In case of net profits less than 8% of the TO, then accounts to be audited as per sec. 44AD.
CAclubindia
