banner_ad

Is this tax audit?

Tax queries 844 views 6 replies

Dear Reader

If I Purchase Share worth 2 Crore and Sell Share woth 2.10 Crore In National Stock Exchange.Do I come Under Tax Audit U/s 44AB?

CG :Short Term Capital Gain

Thanks

Replies (6)

Tax audit is for persons having income from business or profession.

If you are having only income from capital gain, you are not subject to tax audit u/s 44AB.

Originally posted by : Kavyaa Gunalan
Tax audit is for persons having income from business or profession.

If you are having only income from capital gain, you are not subject to tax audit u/s 44AB.

 

From the Act

According to section 44AB of the Income Tax Act 1961 " In the case of any person

a) Carrying on business where the total sales, turnover or gross receipts exceeds Rs.1 crore in the previous year.

b) carrying on any business referred to in section 44AD and claiming his income from such business to be lower than the income prescribed u/s 44AD and during such year his income exceeds the basic exemption limit.

                  In this case you decided that your income will come under the head "Capital Gains". Section 44AB will not invoke in cases of capital gains.So tax audit is not applicable to you.

What is Turnover Limit for a travel agent for getting his books audited? is it total sales or total commission?

It will be noted that the provision relating to tax audit applies to every
person carrying on business, if his total sales, turnover or gross receipts in
business exceed the prescribed limit (Rs.1 crore w.e.f. A.Y. 2013-14)

What is Gross Receipt?

In the case of a travelling agent, the amount received from the clients
for payment to the airlines, railways etc. where such amounts are
received by way of reimbursement of expenses incurred on behalf of
the client. If, however, the travel agent is conducting a package tour
and charges a consolidated sum for transportation, boarding and
lodging and other facilities, then the amount received from the
members of group tour should form part of gross receipts;

ICAI has specifically provided in its guideline that in case of share trading business, turnover limit for section 44AB is to be determined based on profit or loss. So if your profit + loss exceed limit of Rs 1 corer then only tax audit will be applied.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details