tax on trading

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pankaj mangal (Querist)

14 February 2011 Gud Evening sir,

my name is pankaj mangal, i have demat a/c of reliance money.
sir i want to know that my income is not more than 1.5 lakh per annum but i trade approx 50000 rs per day.

so for this volume i have to pay any tax.

please reply.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)

15 February 2011 Taking 260 working days in a year(after excl Saturday and sunday)Your Turnover comes to Rs. 1.30 crore in year. In that case you have to get your account audited by a chartered accountants u/s 44AB of the Income Tax Act.

After auditing, you income is less than the taxable limit you need have to pay any tax but you have to file your return

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

15 February 2011 If you are squaring up the transaction on the same day, i.e. if you are engaged in intra -day trading of Rs 50000/- per day. in that case delivery transactions are not substantial and as such you may not require to get your accounts audited.

In that case you have to be careful about delivery transactions. In that case your sale should not exceed the limit of Rs. 60.00lacs.

Advocate Vivek Kumar Sancheti

Advocate Vivek Kumar Sancheti (Expert)

15 February 2011 If your income is below the taxable limit you need not pay tax.

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