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

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)

Replies (12)
case 1 Cover in speculation and case-2 treates as investment. . . .

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...

Agreed wit views of lokesh .

agree with mr lokesh

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.

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

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

mr lokesh is right...

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.

1. It is the difference amount to be considered


2. whole price collected

i agree with lokesh jain

dear friends 


1 st situation - difference value shall be considered either positive of negative.

2 nd situation - only sale value shall be considered for tax audit us 44ab.


ca vaibha

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