i started share trading with investment of 20k only, but my daily sale and purchase is around 8-10 lacs. i want to know nature of my trading and is there tax audit is required in this case if my sale and purchase exceeds 1cr
23 November 2014
Compute the MOD value (difference between sale and purchase of each transaction without mathenatical sign) That will be regarded as your turnover.
24 November 2014
Beng into the field of COMMERCE, I would recomend that there is NO substitute for maintenance of books of accounts whether or not it is mandatory. You can keep the record in EXCEL, with contract notes saved electronically.
26 November 2014
sir plz dont mind.... i asked with various chartered as well many of them tell me that if your sales exceeds 1 crore than your accounts should be audited
27 November 2014
See, Vikas, either you are NOT disclosing ALL your details to these CAs or you have some preconceived notion about the whole transactions. Please understand that this is a judgemental call. The act has NOT given it in a neat and tidy manner. In fact there are LOT of controversies as to whether or NOT share trading should be considered as INVESTMENTs or BUSINESS. The next in the line is, if it is business, then is it SPECULATIVE. The answer given by me is based on the assumption that your share trading is SPECULATIVE in nature.
CAclubindia
