Mandatory tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 Sale of Shares and Securities beyond 1 crore in value invites mandatory tax audit. Do mutual funds fall under the definition of Shares and Securities? Also, is off market transfer under delisting buy back by the company fall under Sale of Shares and Securities?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2014 are doing these transactions as a trader or as an investor? answer to this question will decide whether audit is required or not.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 Thank you for responding. These transactions are as an investor only.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2014 then tax audit wont apply............

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 Thank you. In which case what documentation should an investor keep in place for an income tax query? Also, does some some sort of registration distinguish an investor from a trader? Pl advise. Thank you.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2014 its more a subjective test. what is looked at the intention of the assessee while making the trades.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 Thank you. Appreciate.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2014 you are welcome.................

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