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Tax audit - Turnover u/s 44AB in shares trading

Suraj (735 Points)

21 May 2011

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)

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12 Replies

M. N. JHA (CA) (8316 Points)
Replied 22 May 2011

case 1 Cover in speculation and case-2 treates as investment. . . .

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

case2 : whole buy and sold amount conseider for 44 AB limits...

1 Like

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 22 May 2011

Agreed wit views of lokesh .

KIYOSH (TAX CONSULTANT) (332 Points)
Replied 22 May 2011

agree with mr lokesh

Vishal (a) (48 Points)
Replied 22 May 2011

Originally posted by : Lokesh Jain
	case 1:covered in 43(5)- only the difference b/w buy price & sell price taken for 44AB case2 : whole buy and sold amount conseider for 44 AB limits...

Absolutely right!!!!!!!

There is also one notifaction which ICAI had issued before 1 year.

Suraj (735 Points)
Replied 22 May 2011

Originally posted by : Vishal
	Originally posted by : Lokesh Jain case 1:covered in 43(5)- only the difference b/w buy price & sell price taken for 44AB case2 : whole buy and sold amount conseider for 44 AB limits... Absolutely right!!!!!!! There is also one notifaction which ICAI had issued before 1 year.

Thanks you All.....

Vishal...

Could you please provide a link to that notification or file..... so that I can go through....

Regads,

Suraj

Abhishek Gupta (Final) (1125 Points)
Replied 23 May 2011

In 2nd Condition it must be Eithe Buy or Sell not Both????

pallav (still a learner....) (938 Points)
Replied 23 May 2011

mr lokesh is right...

Majid (Practice) (39 Points)
Replied 26 May 2011

Case:1 Difference b/w buy price & sell price without considering sign to be taken eg. in one transaction speculative profit of Rs. 1,000/- and in another transaction speculative loss of Rs. 1000/- then in T/o is considered Rs. 2,000/-.

Case:2 In delivery based transactions Sale amount of Shares is considered for T/o, not purchase and sale both. e.g. purchase of Rs. 35 Lcs and Sale amt of Rs.42 lacs then Rs.42 lacs is considered for T/O not Rs. 77 Lacs.