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| This query is : Resolved
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Author : Anonymous
( Author )
01 August 2012
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I'm an Individual & I trade in shares.I don't have any other source of income.In F.Y. 11-12 I sufferred a loss of Rs. 20,000 & a profit of Rs. 12,000.Can I show the above as my business income ???? If yes, am I required to get my books audited u/s 44AB because I am showing my business income below 8 % ?????
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Amol S. Joglekar.
( Expert )
01 August 2012
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Are you in short term gain bracket OR speculative. Please ensure this.
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Author : Anonymous
( Author )
01 August 2012
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It is short term
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Amol S. Joglekar.
( Expert )
01 August 2012
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Then it is not business incme. so 44AD or tax audit is not applicable.
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Author : Anonymous
( Author )
01 August 2012
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By mistake I have already shown this as my Business Income, then what ????
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Amol S. Joglekar.
( Expert )
01 August 2012
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Either revise the return. 8% ceiling will not be applicable. Tax audit is also not applicable.
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Author : Anonymous
( Author )
01 August 2012
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Why can't I show it as my business income as I am fully engaged in this ????
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Amol S. Joglekar.
( Expert )
01 August 2012
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You can show. But lot of cases are pending in front of Assessing Officers on this account. Revenue earning nature of Income Tax is restricting the department from accepting the fact that it can be treated as business at the choice of ASSESSEE.
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Author : Anonymous
( Author )
01 August 2012
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so what will be the implications???
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Amol S. Joglekar.
( Expert )
01 August 2012
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Considering the amount involved in your example, nothing will happen. It will go un noticed.
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Author : Anonymous
( Author )
01 August 2012
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in case in the Succeeding year my income crosses Crores and i continue showing it as my business income. then what?????
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Amol S. Joglekar.
( Expert )
01 August 2012
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P Chidambaram would love to have this in crores... it will go for 30% slab. Best of luck.
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Author : Anonymous
( Author )
01 August 2012
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thanks for taking the trouble. but m still not satisfied with ur answer.
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Amol S. Joglekar.
( Expert )
01 August 2012
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The simple meaning is that Income TAX people will always love to show it as BUSINESS INCOME rather than going by 15% tax rate.
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Author : Anonymous
( Author )
01 August 2012
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ohk!!!! so give me a final answer whether to treat it as my business income or short term gain in my current state????
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Amol S. Joglekar.
( Expert )
01 August 2012
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15% would be advisable in your case if it is really going to go in crores (millions in terms of US people)
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