A person is engaged in Day Trading of shares. This is treated as Speculative Business. Is this person required to get his account audited if turnover exceeds Rs. 40,00,000.00? How will this amount of Rs. 40,00,000.00 be calculated?
Amit Kumar Agarwal (Practice) (132 Points)
03 September 2009A person is engaged in Day Trading of shares. This is treated as Speculative Business. Is this person required to get his account audited if turnover exceeds Rs. 40,00,000.00? How will this amount of Rs. 40,00,000.00 be calculated?
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 03 September 2009
Respected Amitji,
U/S - 44AB of Income Tax Act.1961 if any business gross sales, Turnover, receipts are above Rs.40 lacs then this accounts are to be Audited under Income Tax Act. ie Tax Audit.
Thanks
Debashis
Amit Kumar Agarwal
(Practice)
(132 Points)
Replied 04 September 2009
Actually I want to know what is included in this Forty Lacs in case of day trading- is it difference of purchase and sale price of shares or is it net sale price of shares?
Amit Kumar Agarwal
(Practice)
(132 Points)
Replied 04 September 2009
What is gross receipt of share trading business?
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 05 September 2009
Dear Amit,
Here r 2 things - Gross Receipts or sales
Sales means the Shares which u sold to square off the Transaction & Gross Receipts r the total amount u taken as margin or profit, so conflect is here, Law has not so clarified about the term of sales, so far i studied, so it can be taken from case laws or some assumptions may be possiable, as per law the word used is sales or turnover not amount realised, so from my point of view it is ur sales value & not the margin amount u recd.
Debashis
Dharmesh k. Dubey
(Student)
(188 Points)
Replied 15 September 2009
hi amitji ,
here the net difference between the purchase and sales price of shares wd been taken for calculation of turnover , nd this mit ur gros receipt also0.
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 15 September 2009
Sorry I was wrong, Now i am attaching some of my downloading for your reference
C A GROUP COACHING
(COACHING )
(2487 Points)
Replied 24 September 2009
For shares trading ( Delivery or F & O or Day Trading ) Tax audit becomes applicable only if the net Income exceed (Difference to Sales /Purchase ) exceeds 40Lkhs. & Not your trading T/O else every person dealing or trading in shares would have been in Audit.
BIJOY KUMAR UPADHAYA
(ACCOUNTANT)
(32 Points)
Replied 02 October 2009
Please provide me scrutiny norms for the AY 2009-2010
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
