Taxation of intraday share trading

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This query is : Resolved

Sudeep Kurrey (Querist)

13 May 2014
Dear Sir, I m Sudeep From Raipur an assessee doing share trading personally. In ay 2013-14. I hv a loss of 34107 from intraday share trading. Being speculation loss Whether it should be audited? And if yes under which section? Books of ac's is required to be maintained? I hv heard that capital income and speculation income doesn't attract tax audits. Only normal business income comes under it. Also I hv admit it on my itr for carry forward without audit. And after sone time I hv received a notice u/s 143(1). In which department has added that loss of 34107 as profit under business and profesion head. And claim a demand of tax. What I hv to do? Pls clarify me thank you.

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 May 2014 1. it is covered under business income

2. audit shall be applicable if the turnover exceeds Rs 1 cr or where the turnover is less than and income is less than 8% of turnover but overall income exceeds the basic exemption limit.

3. once the income is properly reported, loss will automatically be carry forwarded.

4. well without audit, you cannot claim loss 9as explained in Point 2.

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