3 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 05 January 2021
Tax Audit u/s 44AD is applicable in the following cases:
1. If the Turnover exceeds Rs.2 Cr
OR
2. If the taxpayer has incurred loss
For Tax Audit, the taxpayer should appoint a professional Chartered Accountant for:
Audit of books of accounts
Preparation of Financial Statements (P&L and Balance Sheet)
Preparation and Filing of Tax Audit Report (Form 3CD)
Preparation and Filing of Income Tax Return
Imp: If the taxpayer decides not to claim and carry forward the trading loss, he can avoid the hassle of tax auditIncome Head – PGBP (Profits & Gains from Business and Profession)
Income from Intraday Trading is classified as Business Income for preparation of Income Tax Return.
Equity Intraday Trading – Speculative Business Income
F&O Intraday Trading – Non-Speculative Business Income
ITR Form – ITR-3 (For individuals and HUFs having income from profits and gains of business or profession)
Due Date to file Income Tax Return for FY 18-19 (AY 19-20)
31st July, 2019 – If Tax Audit is not applicable
30th September, 2019 – If Tax Audit is applicable
Calculation of Income
1. If the Turnover exceeds Rs.2 Cr
OR
2. If the taxpayer has incurred loss
For Tax Audit, the taxpayer should appoint a professional Chartered Accountant for:
Audit of books of accounts
Preparation of Financial Statements (P&L and Balance Sheet)
Preparation and Filing of Tax Audit Report (Form 3CD)
Preparation and Filing of Income Tax Return
Imp: If the taxpayer decides not to claim and carry forward the trading loss, he can avoid the hassle of tax auditIncome Head – PGBP (Profits & Gains from Business and Profession)
Income from Intraday Trading is classified as Business Income for preparation of Income Tax Return.
Equity Intraday Trading – Speculative Business Income
F&O Intraday Trading – Non-Speculative Business Income
ITR Form – ITR-3 (For individuals and HUFs having income from profits and gains of business or profession)
Due Date to file Income Tax Return for FY 18-19 (AY 19-20)
31st July, 2019 – If Tax Audit is not applicable
30th September, 2019 – If Tax Audit is applicable
Calculation of Income
Smit Shah
(524 Points)
Replied 05 January 2021
Intraday turnover must be calculated by aggregating profit and loss in absolute term after than check whether it is beneficial to show income as per presumptive taxation us 44AD also check whether liable for audit us 44AB if turnover exceeds that limit mantioned in 44AB.
ayusmita
(Tax consultant)
(5885 Points)
Replied 05 January 2021
Intraday under pressumetive business
if trunover both profit and loss with limit upto 2cr then taxed at the rate 6% but you can't carry forward your losses
intraday under normal business if trunover both profit and losses with limit upto 1cr then taxability as per normal tax slabs by taking total turnover minus expenses
expense like sst, brokerage, any other expenses related to share, depreciation of computer system, internet charges etc etc
here you can take care forward losses
audit is applicable if it corsess 2cr u/s 44AD or crosses 1cr in normal business both in profit and losses trunover not on share portfolio trunover
if trunover both profit and loss with limit upto 2cr then taxed at the rate 6% but you can't carry forward your losses
intraday under normal business if trunover both profit and losses with limit upto 1cr then taxability as per normal tax slabs by taking total turnover minus expenses
expense like sst, brokerage, any other expenses related to share, depreciation of computer system, internet charges etc etc
here you can take care forward losses
audit is applicable if it corsess 2cr u/s 44AD or crosses 1cr in normal business both in profit and losses trunover not on share portfolio trunover
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