12 April 2008
1. A parson is engaged into frequent trading (buying and selling- not as invesment) of share with turnover exceeding Rs.40 lakh in a year, should he get his accounts audited u/s 44AB? 2. Pl also suggest what would be the liability u/s. 44AB in a seperate case - if a persons Gross Turnover has exceeded Rs.40 lakh in a year IN INTRA-DAY TRADES, but the net receipt (total of difference of each intra-day Sale & purhcase) is 5-6 lakh. 3. Should the above be clubbed with the normal business turnover.
12 April 2008
Thanks. Income from trading in Shares, and wef Asst Yr 2006-07 income from F&O also, is no more in "Speculation" category. Further, I want to ask that Trading in Shares - in which there is no broking, no consultancy, no customer - is really a "Business". Please review the suggestion.
12 April 2008
1. The turnover for the mentioned case is Net amount. ie. Purchase value - Sale Value. If that exceeds 40 Lakhs, 44AB applies. 2. No 44AB 3.No. That is speculative Business
12 April 2008
Thanks for replies. PLEASE NOTE MY IDEA: 1.Trading in Shares - in which there is no broking, no consultancy, no customer - is really a "Business" for the purpose of 44AB. 2. Income from trading in Shares, and wef Asst Yr 2006-07 income from F&O also, is no more in "Speculation" category. Please review the suggestion.
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