Turnover in case of intraday share trading business

This query is : Resolved

PARIN SHAH (Querist)
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10 April 2010 If an assessee is doing intraday share trading then what constitute its turnover to decide liability u/s 44AB of the income tax act :
(1) Net Profit or loss
(2) Aggregate total of purchase plus sale on the particular day or
(3) Sales of shares only

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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10 April 2010 FOR intraday share trading constitute its turnover to decide liability u/s 44AB of the income tax act is as per net Profit or loss for the year

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 April 2010 I WANT TO ASK SAHU JI IF A FIRM'S PURCHASE AND SALE OF SHARES IS IN CRORES BUT PROFIT IS LESS THAN 40 LACS, THE 44AB APPLICABLE OR NOT??

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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10 April 2010 NOT REQUIRE TAX AUDIT U/S 44AB IF INTRADAY SALE PURCHASE CROSS 40LACS

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 April 2010 THANKS.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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10 April 2010 YOUR WELCOME SIR,

taxindiaconnect

taxindiaconnect (Expert)
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04 May 2010 I just want to understand, in this reply that for limits undersection 44AB we need to consider the net profit of the asessee not the turnover?, if yes then what happen to an assesee who has turnover of huge amounts and taxable losses

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 May 2010 BOTH PROFIT AND LOSS TO BE CONSIDERED FOR TAX AUDIT LIMIT. I.E. PROFIT + LOSS FROM SUCH TRANSACTIONS.
EVEN IF THERE IS ONLY LOSS WHICH EXCEEDS 40 LACS TAX AUDIT IS NECESSARY.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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04 May 2010 AGREE WITH SANJAYJI,
DAY TO DAY PROFIT OR LOSS COUNT FOR TURNOVER

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