Query regarding statutory compliances

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Guest

Guest (Querist)

11 January 2010 A is an individual having the following situations :

Figures are roughly given :

Salary Income : Rs.3.35 Lacs
Intraday Profit : Rs.0.50 Lac
Profit on Delivery based Transactions (Turnover approx. Rs.30 Lacs) : Rs.0.75 Lac
Loss on Automobile Workshop : Rs.1.90 Lac.
(Collections on Service / Repairs approx. Rs.6 Lacs)

Experts' may give views on complying the statutory compliances.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 January 2010 Sir
If there is loss in intraday trading kindly give that figure also.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 January 2010 Sir
My answer may kindly be read as follows:-
1.Tax audit applies.
2.To be taxed at graded rates but
income of intra day (shares only ) may be offered under 'speculative business' and
income from delivery based may be offered under 'other than speculative business'
3.All expenses can be claimed.
in addition to that cost of stationery and cost of periodicals (to know about share market)
can also be claimed over and above depreciation and audit fee.

NB:-
(A) Turnover/gross receipts for the purpose of tax audit is
1. Pl exclude salary income.
2. Actual sales turn over of delivery based transactions may be considered.
3. Profit + loss of intraday transacions may be considered as turnover.
4. Actual turnover of Automobile division may be considered.
(B) If accounts are kept separately for shares and work shop, both are to be audited followed by one 3CB and two3CD's may be obtained from the auditor's.
(C) Loss of automobile business cannot be set off against salary income and from speculative income (intra day trading).
I will be grateful to hear divergent views,if any, of others.

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