Tax on intraday turnover

This query is : Resolved

pardha saradhi (Querist)

22 March 2018 i am a bank official retd in 2016, i used to do intraday business and always on loss. now my auditor is saying there will be tax on intraday turnover. please guide me.because of allowing 5 day credit the ledger summation is 1crore above.
during the fin year 2016-17 the toal sales 44008675.50 and total purchases 44018349.31 and taxable income -9673 loss.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 March 2018 No need to pay any tax on the loss.

Nikhil Kaushik

Nikhil Kaushik (Expert)

22 March 2018 you might be required to do an audit (depending on the turnover) but definitely no tax payable as Seetharaman ji just stated above

pardha saradhi

pardha saradhi (Querist)

22 March 2018 thank you seetharaman whether i have to show in my return this loss and is there in tax audit for this

pardha saradhi

pardha saradhi (Querist)

22 March 2018 thank you seetharaman whether i have to show in my return this loss and is there in tax audit for this

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 March 2018 Yes you have to show the loss in return. Tax audit applicable if you're having taxable income.

Nikhil Kaushik

Nikhil Kaushik (Expert)

22 March 2018 actually tax audit could also be applicable if the turnover exceeds the 44AB limit. The above data doesn't provide sufficient information to rule that out.

pardha saradhi

pardha saradhi (Querist)

22 March 2018 WHAT IS THE CONSEQUENCES IF I WON'T SHOWN THE TRADING DETAILS IN MY RETURN , BECAUSE THERE IS NO INCOME

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 March 2018 Yes agreed with the above reply. Add loss and gains each day check whether it exceeds 1 crore, if it exceeds tax audit applicable.

Nikhil Kaushik

Nikhil Kaushik (Expert)

22 March 2018 income-tax department already knows about these transactions. So risk of improper filings, misrepresentation, penalty in case audit was applicable etc etc

pardha saradhi

pardha saradhi (Querist)

22 March 2018 WHAT IS TAX AUDIT WHO WILL DO IT. WILL IT COST ANY AMOUNT

Nikhil Kaushik

Nikhil Kaushik (Expert)

22 March 2018 a practicing chartered accountant has to do it. Costs around 10-15 thousand on the least.

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