Trading in shares and derivatives

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2012 A person, is a regular trader in equity market. He does intra day purchase and sale of equity shares and derivatives.
His turnover during the year is 75 crore in such trading. During the year he has made a loss of Rs. 15 lac
Now my question is, does the case come under provisions of 44AB or should the loss be shown under the head capital gains.
please suggest and also plz give reference to any case laws .

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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02 October 2012 In this case gross profit + gross loss will consider as turnover if this turnover exceeds the Rs.60 lacs then he required to make tax audit according the the ICAI guidelines. However this answer will change based on the nature of transaction. So for your clarification i will attach the 44AB guidance note by ICAI please say your mail ID.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2012 Sir My mail id is chssmohan@gmail.com

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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02 October 2012 I send the mail please check.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2012 Thank you very much for the information sir, it has helped me. now a new doubt arises sir, for suppose if we take the case as tax audit for this year show loss and file the returns. if for the next year, there is not much transaction in the account and if he gets a gain, even if on small turnover, will he be able to adjust the next year gain, which is under capital gains to the loss of current year under 44AB

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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02 October 2012 Yes, to set- off the losses with the gains not required to do audit only condition is required to file the loss return with in the due date as per section 139(1) and is it audited or not is irrespective. and the carry forwarded loss should be in eligible period to set-off.

OM SAI SRI SAI JAI JAI SAI

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