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Tax audit for intraday trading

09 September 2022

my client doing intra day trading and F&O TRADING. His gross turnover below 10 crores.
all transactions are through banking channel.
He has speculation income 12 lakhs.
whether brokerage and STT Paid will be allowed as deduction

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10 Replies

CA Aakarsh Jain (CA) (10346 Points)
Replied 09 September 2022

Only brokerage is allowed as deduction.

2 Like

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Vijay Mohan (637 Points)
Replied 09 September 2022

Whether tax audit applicable

1 Like

CA Aakarsh Jain (CA) (10346 Points)
Replied 09 September 2022

If 95 % of receipts and 95 % of payments are not in cash then audit limit is 10 crore and hence audit is not required.

2 Like

veerendar singh (tax consultant) (3301 Points)
Replied 09 September 2022

Both brokerage and stt will be allowed as deduction

3 Like

Vishal Manakshe (299 Points)
Replied 10 September 2022

All the expenses including STT and brokerage will be allowed as deduction.

2 Like

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 10 September 2022

Brokerage and STT both will be allowed as deduction against respective gains.

Even other charges like turnover tax , Stamp duty , GST can also be claimed as exp unless GST is registered

5 Like

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 11 September 2022

All transfer expenses are allowed

4 Like

Amit (CA Practice ) (107 Points)
Replied 12 September 2022

What is the appllicability of Tax Audit with reference to clause (e) of Section 44AB ?

ISMAIL G.A (a) (38 Points)
Replied 12 September 2022

I am already running a business which has turonver of Rs.1.5cr(cash receipts crossed 5%) and I am also trading in F& O with turnover of Rs.70Lakhs do I need to get the audit done or is it posssible for me to declare the income on presumptive basis in both businesses/

Share knowledge (Job) (47 Points)
Replied 13 September 2022

Yes if you don't want to declare 8% profit . However if you declare 8% on business turnover and 6% on F & O turnover , you need not required to get audit.