IF ASSESSE INCURRED SPECULATION LOSS AND SHORT TERM ON SHARE TRADING400000 ON TRADING OF SHARE OF 40 LAKH . AND HIS OTHER SOURCES INCOME IS 600000. IS HE LIABLE TO AUDIT AS PER SECTION 44 AD BECAUSE HIS SHARE BUSINESS IS LESS THEN 60 LAKHAND HE IS NOT DECLARING 8
% PROFIT OF TURNOVER.
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Audit as per section 44AD
Replies (6)
GOOD QUESTION SIR,
I THINK HE IS LIABLE FOR TAX AUDIT BECAUSE HE IS NOT DECLARING HIS PROFIT AT 8% ON TURNOVER... HE IS MAINTAINING BOOKS OF ACCOUNTS SO ACCORDING TO MY OPINION HE IS LIABLE FOR TAX AUDIT,,,,
For tax audit , two conditions has to be satisfied
1.declaring income lower than 8%
2.total income does nt exceed minimum exmption limit
if both conditions fulfilled than assessee will be liable to tax audit
mm... if the assessee is not ddeclaring income @ 8% <which he can under Section 44AD>, then why is he being brought under 44AD?
wont he be taxed under Sepeculation business??
I THINK HE IS LIABLE FOR TAX AUDIT BECAUSE HE IS NOT DECLARING HIS PROFIT AT 8% ON TURNOVER... HE IS MAINTAINING BOOKS OF ACCOUNTS SO ACCORDING TO MY OPINION HE IS LIABLE FOR TAX AUDIT,,,,
@ aparna Raja K C : rule said that if you have speculative business and if you are not declaring profit @ 8% then tax audit will be applicable irrelevent of turnover...
If short term trading in share is intra day then it will not be liable to tax audit
and for short term trading in share is considered as normal business income so as he not show 8 % profit then he will be liable to TAX Audit in my opinion.
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