Profilt from speculation business

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2011 whether active individual trader in fututes segement in stock market with daily turnover of Rs. 50 lakhs needs to maintain books of account and get it audited? For any payments against expenditure regarding techinical fees for tips etc. needs to effected TDS? Experts plz advice with relevant sections of Income Tax Act so that it could helpout

U S Sharma

U S Sharma (Expert)
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15 May 2011 turnover is not to be calculated on contract value, but on money flow,
if total money flow is more than 60 lacs per annum then its subject to audit,
post audit years, he is liable to maintain TDS formalities,
all such expenses related to such business is allowed as expenditure.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 May 2011 In fututes and options business, absolute value of profit or loss in considered as turnover and if it crosses Rs. 60/- lakhs per amnnum compulsoty maintenance of accounts and audit under section 44AB is a must.

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