An assesse is doing normal manufacturing business and he is also doing trading in Futures & Options through a mentor who does trading in assessee's account. The assessee also pays 40% of the net profit earned after stt, brokerages etc at the end of every week as commission .
. Is he liable to deduct TDS on the payment he makes them every week?
First , it tax audit applicable in this case, let's say his turnover in manufacturing business is Rs.40 lakhs, and the summation of absolute value of futures and options profit/loss comes to Rs. 65 lakhs to calculate tax audit applicability? In this case, if we take these two as separate businesses then tax audit is not applicable, but if we combine together, is tax audit appliacable?
In terms Futures & Options trading, there will be 100% online transaction only, even while paying commission to the mentor. Given, this 100% online transaction, can we take the limit of 5 crores as summation of absolute value of profit/loss in futures and options to calculate the tax audit applicability?
Experts, please throw light in this regard.
Thanks.
CAclubindia
