Intra day share trading

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sidambaraselvan (Querist)
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29 November 2013 If my net annual turn over is less than 40 lakhs, then whether it is compulsory to maintain books of accounts and whether it should be compulsorily audited.

What is the journal entry for transaction in case of intraday share trading.

What is the maximum ceiling limit for audit purpose either 40 lakhs or 60 lakhs

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 November 2013 The query is headed as Intra day Share Trading.
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In case of Intra day Trading -the profit and loss is added for deciding the turnover for the purpose of Tax Audit.
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However, in case of delivery transactions turnover means sales on delivery basis.
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Journal entry for profit in intraday share trading is -
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Broker's A/c
To Intraday Profit Loss A/c
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In case of loss, the entry is reversed as

Intraday Profit &loss A/c
To Broker's A/c.
consider profit or loss only. No need to show Purchase and Sale amount.
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Turnover limit for FY 2012-13 and 2013-14 for the purpose of Tax audit is Rs. 1 Crore.
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