What is the definition of Turnover for the purpose of Tax Audit u/s 44AB in following cases:
1) Shares traded intra-day (without delivery)
2) Shares traded delivery based (sold within a year)
3 Replies
Dhruv
(Chartered Accountant)
(308 Points)
Replied 21 May 2011
Members please correct me if I am wrong :
- Share trading without delivery is classified as speculative trading and hence comes under the head PGBP, this turnover is classified as turnover for the purposes of 44AB
-Share trading with delivery to be calculated as per 111A and 112 under the head Capital Gains, this is not to be counted for calculating turnover under 44AB.
Vivek Mehta (CA, DISA,CS, MBA)
(I am in Practice and also giving understanding and guidance to the Students of CA Final and IPCC for various subjects esp for Direct Tax.)
(1629 Points)
Replied 22 May 2011
| Originally posted by : Dhruv | ||
 |
Members please correct me if I am wrong : - Share trading without delivery is classified as speculative trading and hence comes under the head PGBP, this turnover is classified as turnover for the purposes of 44AB -Share trading with delivery to be calculated as per 111A and 112 under the head Capital Gains, this is not to be counted for calculating turnover under 44AB. |
 |
answer given by Dhruv is very correct...
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 22 May 2011
case 1:covered in 43(5)- only the difference b/w buy price & sell price taken for 44AB & in pgbp head
case2 : since its a delivery base transactions hence these r classifiable as stcg/ltcg under cg head..
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