Applicability of 44AB

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Dharmesh k. Dubey (Querist)
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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)
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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

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

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CA.Mini

CA.Mini (Expert)
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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.

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Dharmesh k. Dubey

Dharmesh k. Dubey (Querist)
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12 July 2010 thank u all.

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