re: share trading

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2010 Dear sir,
I am Individial self employed
business man my personal name i file
return but my turn over is not above 40 lakhs so i donot Audit my personal Account.

My query is that If i do trading delivery
and futures abover 2 crore in my Account
am i liable to Audit my Account. i have heard if i donot Audit i could be liable
to pay find of 1,50,000/- or 0.5% of my trade value. pls inform me ..
thanks.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 August 2010 Your understanding is correct. Your accounts need to be audited under section 44 AB of the income Tax Act,1961 failing which penalty under section 271B of the said act attracts.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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21 August 2010 Turnover in case of F & O and intraday trading is sum of positive and negative differences i. e. profit + loss.

In case of delivery trading turnover is actual sale of shares.

If the total of all exceeds Rs. 40 lakhs (in F. Y. 2010 - 11 Rs. 60 lakhs) then u are liable for audit u/s 44AB and failing to get ur boks audited will be liable for penalty u/s 271B upto Rs. 1 lakhs (from F. Y. 2010 - 11 Rs. 1.5 lakhs).

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