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Applicability of tax audit in intraday trades

Tax queries 344 views 1 replies

Hello,

Last financial year, I have entered into following transactions in shares in intraday as well as normal shares trades.

                                                             Total turnover as per     Futures only       Equity/cash segment only

                                                             Contract notes

Total   1457260. 787128. 670132.

Loss                                                                                           92963                  131135. 

Further I had  STCG Loss of Rs.3709 and LTCG gains of Rs.187083/- from sale of unlisted shares.

I would like to know whether the aggregate of above transactions attracts tax audit of books of accounts, since, I have a doubt about the  insertion of of clause with regard to applicability of tax audit in case of   loss or profit earnings of 8% of total turnover..

In a nut shell , I would like to know, whether profit/loss of 8%, if incurred, attracts Tax audit,irrespective of turn over, as in my above case, the loss incurred is around 15% of total turnover of Rs.1457260/-

Thanking you,

Prahalad.

 

 

 

Replies (1)

Error ....Not 8%, but 6%...... in such trades...

Yes, tax audit applicable in case net profit below 6% along with total income above basic exemption limit.


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