Cap.Gain or Intra-day?

It would be capital gains only as the beneficiary of the pool account is the individual only.

i.e you are talking about BTST sales of shares Buy Today Sale Tomorrow.

BTST® is a facility whereby the customers are being allowed to sell their shares against their receivable position in the same shares from the same Exchange. However, in case there is a short delivery from the Exchange for the earlier buy transaction, then the BTST® customers will also be giving short delivery for their sell transaction. The Exchange would either give delivery of shares bought earlier through market auction or shall closeout the buy transactions as per the Exchange Regulations. However, this would not help the customer in meeting his sale delivery obligations already committed by him as even if he receives the shares bought earlier through auction settlement, by that time the securities pay-in date for his sell transaction would be over. In such case, the customer will have to face auction proceedings against his sale transaction and will have to bear the auction losses, auction penalties and any other incidental charges etc.

Exchange does not net off subsequent sell transaction against the previous buy transaction across the settlements and all the settlement obligations are settled settlement wise.

agreed with Aditya Ji.

In this case capital gain is arise becasue short delivery in your pool account.

agreed that it should be treated as short term cap gain but what about the turnover? is tax audit of the same is required? if i treat the shares turnover of Rs.47 lacs as shares sold as part of cap.gain transactions then do i need to cover it within tax audit bracket? & besides this the client has intraday loss of Rs.70000 which is a speculative business loss. So do i need to consider the turnover of the speculative business for deciding if tax audit applies or not?

plz reply

As far as act is concerned, for the purpose of 44AB the turnover of the business is to be considered. Speculative & Non- Speculative both. Hence the turnover of 47 Lacs should not be considered for audit purpose as it is capital gains. Again, the turnover for the speculative business is to be considered for audit purpose. But practically i have come crossed the case where the client has not considered the turnover of share & has not undergone any audit. 

Thank You

@ CA.Hemant Baja:

Sir, so  the crux is I need to consider the turnover of regular business transactions as well as the speculative business transactions for the tax audit purpose, right?

Tax Audit is assessee-based & not business based. Depending on this, do i need to consider the total turnover of intraday transactions while drafting the assessee's tax audit report? or I can term it speculating business profit or loss without disclosing turnover figure?