Please correct my understanding about applicability of Sec 44AB on business of dealing in share and securities.
difference between buy and sale would be consider as 'turnover'.
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Applicability of 44ab for the business in dealing in shares
Replies (1)
(A) Speculative transaction:
- The aggregate of both positive and negative differences is to be considered as the turnover.
.
(B) Derivatives, futures and options:
- The total of favourable and unfavourable differences shall be taken as turnover.
- Premium received on sale of options is also to be included in turnover.
- In respect of any reverse trades entered, the difference thereon, should also form part of the turnover.
.
(C) Delivery based transactions:
- The total value of the sales is to be considered as turnover (in case such transactions are in the course of business).
.
[To read in details, refer Para 5.14 of the Guidance Note on Tax Audit u/s 44AB (Revised 2014 Edition) issued by the ICAI.]
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