05 August 2009
Respected Sir, I like to know, if the person is liable to tax audit U/s. 44AB in one business. During the year we made thetransaction in Future contract under approval exchange. The turnover of the same of the future contract in crores of rupees.
The person must be filed the tax audit for future conract (Derivative) business.
05 August 2009
The turnover in case of futures contract is considered on mark to market basis. Hence if the total of profits + losses on MTM basis is more than Rs. 40 lakhs the person will be liable for tax audit.
If the person has more than one business for computing the limit of 40 lakhs total receipts from all businesses will be considered to check whether the same will be liable to tax audit or not.
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