Applicability of 44AB

Save Share

This query is : Resolved

Dharmesh k. Dubey (Querist)
Follow

10 July 2010 Hi friends,

Mr. A is a NRI , he is indulged in Purchase & Sale of Shares & Stocks (Delivery Based) , Ofcourse more than Rs.40 Lakhs . So Do the provisions of 44AB apply to him ?

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
Follow

10 July 2010 if Mr. a shows it as investment and income will be considered as capital gain then no audit is required but if he wants to claim all exp and wants to show it as business income then audit is required

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

10 July 2010 If the NRI is regularly trading in shares and if the delivery based sales turnover exceeds the threshold limit prescribed in section 44AB of the Incometax Act,1961, tax audit is mandatory.

Message likes : 1 times

CA.Mini

CA.Mini (Expert)
Follow

10 July 2010 yes.it can be treated as capital gain in which case audit will not be required.in case it is shown as bus.income then audit is required.the assessee can take whichever is beneficial to him.since the tax liability will differ in both cases.

Message likes : 1 times

Dharmesh k. Dubey

Dharmesh k. Dubey (Querist)
Follow

12 July 2010 thank u all.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now