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share trading

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This query is : Resolved

jaigurudev (Querist)

18 April 2011 dear sir,i have bought share of 61 lac and sold 59.5 lac.most of trade are delivery basis.should my account be audited?can i direct show profit/loss as speuclation or shart term/long term.also i receive salary40000 and received int.50000 and paid int.70000.please advice me clear idea. 8% profit rules applicable to for trade in shares?

ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)

07 May 2011 WHETHER ACCOUNTS NEED TO BE AUDITED OR NOT TOTALLY DEPENDS ON WHETHER YOU TREAT THE SHARE TRADING ACTIVITY AS BUSINESS ACTIVITY OR INVESTMENT ACTIVITY. IF YOU TREAT IT AS A BUSINESS ACTIVITY THEN YOUR ACCOUNTS SHOULD BE AUDITED SINCE IF IT CROSSES THE LIMIT OF 60 LACS OF TURNOVER. OTHERWISE YOUR ACCOUNTS ARE NOT SUBJECTED TO AUDIT.
REGARDS

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