Query regarding Share Trading (intraday).

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Guest

Guest (Querist)

08 December 2009 A is an individual doing Share Trading Business i.e. Intraday Trading.

A has purchased various companies' equity shares aggregating to say Rs.90 Lacs.

A has sold equity shares aggregating to say Rs.75 Lacs. (For Rs.15 Lacs, A is holding Equity Shares).

A has just made a profit of say Rs.11000/-only out of the Intraday business.

A is completely unaware of any statutory compliances.

Experts' may give views regarding any statutory compliances on the matter.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 December 2009 1. Intra day trading in shares is known as speculation activity. A has to show Rs.11,000/- as profit earned from speculation. Since no delivery was taken for these activities; hence these will not be included in the turnover.

However; it seems from the facts of the question that he is also holding certain shares for short term. Whatever is not intra-day transactions; the same will be included for purchase and sales. If sales exceeds Rs.40.00 Lacs; then Tax Audit is required.

Ca Rakhecha
Surat

CA krishna Kamthe

CA krishna Kamthe (Expert)
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09 December 2009 For intraday as it is not on delivery base turover as per tax audit guidline note is
1)the total of favourable and unfavourable differences shall be taken as turnover

from your note it seem that you need to pay short term capital gain tax.

Guest

Guest (Querist)

09 December 2009 Dear Experts,

I am able to have some clarity.

However, I still request you to clarify on the following :

Is it that all the INTRADAY transactions shall not be covered under Tax Audit i.e. Rs.40 Lacs ?

Is it that all the delivery base transactions (i.e. sales), which exceeds Rs.40 Lacs shall be covered under Tax Audit ?

Experts - if my question requires any correction, please do the necessary and give your views.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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19 July 2025 If you only do intraday trading and profits + losses < Rs. 40 Lacs, no tax audit required.
For delivery trading, since you are holding shares and sale is Rs. 75 Lacs, no tax audit unless you have other business income exceeding threshold.
Maintain detailed records of transactions.
Consider consulting a CA for preparing ITR and bookkeeping to avoid future issues.

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