Tax Audit For Speculation Trading
This query is : Resolved
Nikhil Kulthe
(Querist)
23 March 2009
Dear Experts ,
I have client who is in heavy intra day trading in Shares .
Past Financial Year his total inter day purchase sale has execeeded Rs.40 Lakhs
.. Is he liable for Tax Audit u/s44AB..
I Have kept his return pending for this reason ... Please Reply
I have client who is in heavy intra day trading in Shares .
Past Financial Year his total inter day purchase sale has execeeded Rs.40 Lakhs
.. Is he liable for Tax Audit u/s44AB..
I Have kept his return pending for this reason ... Please Reply
CA Tilak Raj Sharma
(Expert)
23 March 2009
For margin trading (share which are purchased during the day and sold same day) - only profit /loss will be treated as turnover.
For share purchased today and sold tomorrow - the sales price will be treated as turnover.
If you will apply above method, I don't think there is a need for Tax Audit.
On the same time, tax audit returns last date was 30.09.2008, now you will incur huge penalties.
For share purchased today and sold tomorrow - the sales price will be treated as turnover.
If you will apply above method, I don't think there is a need for Tax Audit.
On the same time, tax audit returns last date was 30.09.2008, now you will incur huge penalties.
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