Sir,
Day trading is done in share market.how to account the same in the books of accounts.whether to record as purchase and sale transactions or is it enough to refelect the net transactions
sukumar
sukumar (Accountant) (59 Points)
28 August 2016Sir,
Day trading is done in share market.how to account the same in the books of accounts.whether to record as purchase and sale transactions or is it enough to refelect the net transactions
sukumar
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160327 Points)
Replied 28 August 2016
If day trading without delivery is your regular business, in such transactions, the aggregate of the difference amount, i.e., positive difference (profit) and negative (loss) difference should be considered as turnover for the purpose of determining the audit under Section 44AB of the IT Act. Hence, net transactions taking loss as positive should be recorded in the books of accounts.
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