AUDIT FOR INTRA DAY SHARE TRADING
This query is : Resolved
13 September 2023
Dear Sir,
My question is suppose I am salaried person and my income is above the exemption limit of Rs.2.5 Lakh and suppose during the full financial year If I have done only one intra day trading and suppose the profit is less than 6 % then do I come to Tax Audit although the turnover is very low. I ask with the following example.
Suppose I purchase the 500 share of Indian Oil @ Rs.100 and sold intraday @ Rs.100.10 so my profit will be Rs.50/- this income will be clubbed into my income @ applicable tax slab. Now during full financial year I have done this transaction only then do I have to undergo tax audit as my taxable income is above exemption limit say Rs. 14 Lakh from salary ??
as I have heard that If profit from Intraday Trading is declared less than 6% and Total Income exceeds Basic Exemption Limit When these 2 conditions are satisfied, Tax Audit will be applicable Is this true ? If this is true then I should avoid intra day as it attracts tax audit.
Please reply at the earliest.
My question is suppose I am salaried person and my income is above the exemption limit of Rs.2.5 Lakh and suppose during the full financial year If I have done only one intra day trading and suppose the profit is less than 6 % then do I come to Tax Audit although the turnover is very low. I ask with the following example.
Suppose I purchase the 500 share of Indian Oil @ Rs.100 and sold intraday @ Rs.100.10 so my profit will be Rs.50/- this income will be clubbed into my income @ applicable tax slab. Now during full financial year I have done this transaction only then do I have to undergo tax audit as my taxable income is above exemption limit say Rs. 14 Lakh from salary ??
as I have heard that If profit from Intraday Trading is declared less than 6% and Total Income exceeds Basic Exemption Limit When these 2 conditions are satisfied, Tax Audit will be applicable Is this true ? If this is true then I should avoid intra day as it attracts tax audit.
Please reply at the earliest.
13 September 2023
Ignore such a small transaction in filing ITR. File ITR 1. Tax audit not applicable for such small transaction.
Avoid intra day trading.
Avoid intra day trading.
Message likes :
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14 September 2023
Thank you sir for your reply. Is there any Tax Audit obligation for individual doing only delivery based share trading. I mean any limit for such audit is mandatory for service class individual doing job ? Pl reply sir.
15 September 2023
Tax audit not applicable for delivery based trading.
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