Tax Audit

This query is : Resolved

Bhavin Kanabar (Querist)
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01 April 2009 One of y client (Properitor) doing business of Shares in delivery base.Annual turnober is exceed of Rs.40,00,000/-. There is any liablity for tax audit or create any other liablity for legal base.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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01 April 2009 i think ur client is required for tax audit

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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01 April 2009 Yes you have to go for Tax Audit u/s 44AB.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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01 April 2009 If you treat it as a business and delivery based, then it is liable to tax audit. If you are treating it as Investment then no tax audit required.

Sanjay Soni

Sanjay Soni (Expert)
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02 April 2009 Yes Tax Audit is required if dealings treated as Business

However in case it is treated as Investment no Audit is reauired

However you must read the case laws and othewr relevent clarification regd treatment of share dealing as Investment and Business

Taranjit Singh

Taranjit Singh (Expert)
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03 April 2009 Section 44AB, as inserted by the Finance Act, 1984, casts an obligation on every person carrying on business to get his accounts audited, if his total sales, turnover or gross receipts, as the case may be, exceed Rs. 40 lakhs in any previous year relevant to the assessment year commencing on 1-4-1985 or any subsequent assessment year.

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