Audit Requirement for Short Term Capital Gain

1282 views 6 replies

Hi All,

I am a Salaried person. If I buy stocks and hold them for days/weeks/months (but not for a year), then I understand it's a Short term Capital gain or loss when I sell them.

Now where I looking for more clarity is that some of the internet posts say if this is shown as a business income and the turnover meets a certain value in crores, then it is subject to an Audit. But some other posts day, if it is shown as a Short Term Capital gain/loss then it doesn't need an audit. So my question is how this type of income/loss is to be shown? Does it depend if the person is Salaried or not?

Thanks in advance.

Replies (6)
It depends on various factors.

If you buy on a particular day and sell after one day or more then you are not required to go for Audit since it is capital gains.

If you are into options trading and intraday then there can be requirement to get accounts audited.

Better take help from professionals
If you have earned capital gain or loss,it will be treated as investment gain or loss and not required for audit but if you are dealing in option or derivatives it will became business income and in such a case audit should be required.
Sec 112A read . In excess of Rs.1 lac 10%
If there is no options trading & equity intraday trading then you may consider entire amount as capital gains.

Now everything is simplified.You will get tax report from broker for tax purposes
You may not get tax report . All of a sudden there may be instances of a notice if it exceeds rs. 1 lac for individual. In case of aop it has a different rule.
One must have practical knowledge on this to answer the query..Every broker is giving tax report on trading activities for tax filing purposes..You need not mannually calculate it

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details