Profit u/s. 44AD in case of share trading activity
Querist : Anonymous
The new provision of section 44AD, how it will impact on share trading activity .
(F & O and Trading in Shares not speculative trading)
My client is engaged in Share Trading Activity,his turnover for F.Y. 2010-11 Rs. 42 Lacs,and has incurred a loss of Rs.1.50 lacs. (As u know share trading activity u can not predict the profit. He has a other income of Rs. 450000 i.e. interest and Rent income from HP.
My question is whether he is liable to get his books of account audit u/s. 44AB ?
As per the provision of section, both condition has to satisfy.
if his income is above 8% of gross turnover then 44AD will save the situation but in case of loss he is required to get audited u/s 44AB
The decision in GROWMORE EXPORTS LTD. & ORS. vs. ACIT (2001) 78 ITD 95 (Mumbai)can be referred to.
Querist : Anonymous
That's true.
Turnover in F & O considering the net of pur and sell is Rs. 350000/-
and incurred loss of Rs. 150000 and Interest income of Rs. 450000/-, still i have to get audit u/s 44AB.
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