Is this tax audit?

865 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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
ARTICLESHIP 08 July 2026
Articles

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details