hi
please if any one can provide information regarding the turnover which is laible to audit under income tax act for the commodities future transaction?
The One Says:
The following could provide an answer to your query:
Futures and options are normally classified as business transactions and the income from them should be assessed as business income. That being so, the provisions of Section 44AB will apply to such transactions. Section 44AB provides for a tax audit where the sales, turnover or gross receipts exceed Rs 40 lakh for persons carrying on business and Rs 10 lakh for professionals. Therefore, if the turnover from transactions in futures and options exceeds Rs 40 lakh, tax audit under Section 44AB would be applicable to such transactions.
You may, however, note that the Bombay Bench of the Tribunal, in ACIT vs Saumil J. Trivedi in ITA No. 3266/Bom/1995, has taken a view that it is only the net of the selling and buying transactions which should be taken as turnover where there is day trading without delivery. This view should apply to transactions in futures and options as well. It will make no difference whether the assessee has no other income.
Hope it helps.
CAclubindia
