banner_ad

44AB tax applicable or not?

Tax queries 221 views 1 replies

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.

Replies (1)
Tax Audit not applicable as turnover is less than 10 Crores ( 1.05 crores currently for verifying tax audit applicability. )however profit should be above 44AD requirements.

now coming to tds applicability on commission, the p/l credit side will look something like sale of goods 40L + net gain from futures options 10L. So the turnover wouldn't cross 1 crore ( currently 50 lakhs in my example), so tds not applicable. Still wait for comment from other experts.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details