Accounting procedure

Others 436 views 2 replies

veephani

Director

34 Points Joined May 2010

Dear Sir/Madam,

I have a querry. I am dealing in F&O in NSE and Commedities in MCX. I have invested 2 lakhs in a financial year and i have the source (borrowed it from a friendwho has proper IT and source) for the investment. i dont have any other businees nor any other income.

With the investment of 2 lakhs, i have done turnover both in F&O and in commodities to the tune of 300 crores. In the end of the day i didnt get any loss nor profit. now i decided to file IT Return for the same. my broking company has not given me any physical contract notes. all have been sent thorugh email. They gave me account statement and other details only in Physical statement.

My account statement shows 2 lakhs investment at the begining and 2 lakhs closing balance. I have deposited nor withdrawn any amount in between.

Now can you suggenst me what should i do to account all the business i have done.

Plz help me out in this matter. i can further provide any other details if u think are required.

Replies (2)

SUDIP RAJA

M.D.

42 Points Joined March 2010

Hello ,

As per your information that you provide here with my knowledge first you have to audit it all your transaction. Because Rs. 1 cr. and above there is Income tax law that audit is must be. When you will go for audit then Auditor ask all necessary document as like all original bill , contaract bill , bank statement , ledger copy of broker. Also when you doing turnover of rs. 300 crore then broker must give you all physical bill or either you printout that you get in soft copy by mail.

After auditor give you audit report you file your income tax return. Also you said that you not gain or loss if this will check auditor and there is no profit or loss then you have no problem. But your all turnover transaction must be audit as per my thinking and knowledge.

Sudip Raja

Financial Consultant

M. 9427721997

veephani

Director

34 Points Joined May 2010

Tanks for your reply Mr.Sudip Raja. But actually i have heard, when we do business in F&O, its not the Turnover taken into consideration, but the net of Profit and loss is added and if exceeds the audit limit then it has to be audited it seems. Please clarify sir