Mayank Taparia (Ca final student) (108 Points)
31 July 2014
Akanksha Jain
(Article)
(690 Points)
Replied 31 July 2014
As per Guidance Note on tax audit u/s 44AB the turnover in F&O transactions is to be determined as follows:
(i) The total of favourable and unfavourable differences shall be
taken as turnover.
(ii) Premium received on sale of options is also to be included in
turnover.
(iii) In respect of any reverse trades entered, the difference thereon,
should also form part of the turnover.
In your case the tunover is Rs. 20 lakhs only.. No need for Tax audit
Mayank Taparia
(Ca final student)
(108 Points)
Replied 31 July 2014
Akanksha Jain
(Article)
(690 Points)
Replied 01 August 2014
| Originally posted by : Mayank Taparia | ||
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Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB. As per proviso 5 of Sec. 44AD, Audit is only required if income exceeds Max. Amount not chargeable to tax What are your views regarding my query while considering the aforesaid provisions.. Mayank taparia Ca final student |
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Mr. Mayank, I guess you are referring to sec 44AD. Sec 4AD is for presumptive income, it states income of the assessee is 8% of the gross receipts and assessee who wants to declare his income less than 8% should maintain books of account u/s 44AA and get them audited u/s 44AB, however assessee can claim highe income.
Income from F&O transactions are not presumptive in nature. Sec 44AD does not apply to F&O transactions.
refer this https://www.caalley.com/gn/30357dtc19988.pdf Page 23
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