Speculative business income?
This query is : Resolved
V.D.KRISHNA PRASAD
(Querist)
07 August 2013
One of my friend is actively involved in Intra day & F&O trading through a share broker and he incurred a loss of Approximately 4.00 lakhs in a financial year.
My questions with reference to above are as fallows
1. Applicability of sec 44AA
2. Applicability of sec 44AB
3. How to disclose in in ITR-4 (one of my colleague working in a CA firm advised to show the same under 44AD).
4. Is it mandatory to file IT return if involved in share trading.
correct me if I am wrong, Recently I viewed Tax Audit Guidance note issued by ICAI for knowing meaning of turnover for the purpose of maintaining books of accounts and applicability of Tax Audit, from that i concluded that turnover means cumulative of Profit/ loss from each individual transaction to considered.
Thanks in Advance.
My questions with reference to above are as fallows
1. Applicability of sec 44AA
2. Applicability of sec 44AB
3. How to disclose in in ITR-4 (one of my colleague working in a CA firm advised to show the same under 44AD).
4. Is it mandatory to file IT return if involved in share trading.
correct me if I am wrong, Recently I viewed Tax Audit Guidance note issued by ICAI for knowing meaning of turnover for the purpose of maintaining books of accounts and applicability of Tax Audit, from that i concluded that turnover means cumulative of Profit/ loss from each individual transaction to considered.
Thanks in Advance.
07 August 2013
Ans 1. Yes applicable.
Ans 2. Depends on your gross turnover or gross receipts if it exceeds rs.1 crore then yes applicable , else no.
Ans3.It is speculative business income so disclose in speculative business col. in ITR-4.
Ans4.the ans is yes.
Ans 2. Depends on your gross turnover or gross receipts if it exceeds rs.1 crore then yes applicable , else no.
Ans3.It is speculative business income so disclose in speculative business col. in ITR-4.
Ans4.the ans is yes.
V.D.KRISHNA PRASAD
(Querist)
08 August 2013
Do you agree with the meaning of turnover detailed in my query? correct me if I am wrong.
whether we need fulfill conditions specified in sec 44AA, or is there any circular or notification with respect to compulsory maintenance of books of accounts in case of speculative traders in shares?
whether we need fulfill conditions specified in sec 44AA, or is there any circular or notification with respect to compulsory maintenance of books of accounts in case of speculative traders in shares?
09 August 2013
yes i agree with wat u wrote for turnover.
if gross receipts exceeds 1,20,000 then sec 44AA is aaplicable for business.
if gross receipts exceeds 1,20,000 then sec 44AA is aaplicable for business.
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