IS TDS CLAUSE APPLICABLE ??

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2010 I am doing business of trading securities in stock mark et. Cash Sagment as well as Future and Option. I have done yearly volume of 2 Crore in both.

Now my case is under Scrutiny, According to ITO, I have to get my audited and TDS on Brokerage paid to Stock Broker is deductible. Kindly Advice. Thanks

chetan soni

chetan soni (Expert)
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27 August 2010 Yes, As you said that you are doing the business of trading in cash segment & futures. So that means income from trading is taxable as business income. you need to your accounts audited as per sec 44AB, as your total trunover exceeds 40L.

When the provisons of section 44AB is applicable then provisions of TDS are also application.

So accordingly you must deduct the tds on brokerage paid to stock broker.

CA krishna Kamthe

CA krishna Kamthe (Expert)
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27 August 2010 In derivative contract where delivery is not made turnover is Profit+loss on transaction should cross 60L now for last Year 40L.
For delivery It will Sale trunover.

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