15 July 2008
Yes, a salaried employee who is also induldged in any business has to get his accounts audited u/s 44AB in case the limits specified in the said section are exceeded.
15 July 2008
FOR EX. IF A INDIVIDUAL TADES IN SHARES ON DAILY BASIS I.E. INTRA DAY TRADES, THEN HOW WE CALCULATE TOTAL TURNOVER OF SUCH INDIVIDUAL. DOES IT MEAN SALE AND PURACHASE BOTH SRE COUNTED FOR TURNOVER FOR LIMIT U/S 44AB. Mr. Ramesh Ahuja please clarify.
15 July 2008
In case of derivative trading-Futures and Option- the difference on which the contract is purchased or sold is important. Although the value of contract is number of contract multiplied with the shares price , yet what is actually given or taken is differential amount in contract. For example if you purchase a future contract for Rs 105 for a share having a lot of 100,you pay nothing at the time of buying a contract, yet at the time of expiry if contract , you are either gainer or loser which is determined whether there is positive or negative difference. So , for the purpose of determining the turnover in case of future and options , for the purpose of 44AB , based on the guidance note of ICAI , following items should be considered to constitute turnover • The total of positive and negative differences , plus • Premium received on sale of options is also to be included in turnover ,plus • In respect of any reverse trades entered, the difference thereon
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