Tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2018 During FY 2017-18 , in cash equity intraday trading, as an individual resident , my buying cost is more than 5 crore , however there is net loss of Rs. 1.2 lakh. I have other income from bank interest and tuition, LTG and STG and dividend. Total income excluding intraday loss is around 130000. In previous years, I have not done intraday trading and my income was below the chargeable income. And I have used ITR2. Shall I need tax audit? Advice from experts is urgently required please. Will any gentleman help me out?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 July 2018 Tax audit not required as you have no taxable income.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2018 Sir, my CA is saying that cost of sale of stocks is taken as turn over since it is more than 2 crore, tax audit is required. However, I have read that in case of speculative business i.e. intraday trading arithmetic sum of difference of sale and purchase is taken as turn over. For example if in one trade I have loss of Rs. 1000 and in second trade there is profit of RS. 500 then turn over is 1000+500=1500 Am I right Sir?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 July 2018 Yes you are right.........

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2018 Thn alot Sir. But sorry to see that not much experts are interested to help others because you are the only one who has addressed my query. Thanks again

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 July 2018 Welcome...............

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