Audit Rules For Income in Share Market

This discussion addresses audit requirements for partnership firms trading in the share market, particularly when incurring losses or profits. If your firm's turnover exceeds Rs. 1 crore, a tax audit is generally compulsory. However, if cash receipts and payments are within 5% of your total turnover (up to Rs. 10 crore), an audit might not be necessary. Alternatively, you can declare 6% of your turnover as income under Section 44AD to avoid an audit.