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Itr form and audit

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Giri

Manager

24 Points Posted on 06 April 2012

I’m an individual having income from Interest on STCG, Fix Deposits and Salary.

I had made delivery based 40 transactions in FY 2011-12 (7 to buy and 33 to sell at my online trading account with Sharekhan Ltd.) and total buy value come to Rs.966000.00 while sell value come to Rs.1866000.00 total amounting to approximately Rs.2800000.00. But not a single intraday transaction was made.

My total income is app. Rs.700000.00 Including STCG of Rs.64000.00. I would be in fitness to mention here that I had file ITR 4 for FY 2010-11 as I had lot of intraday trading transaction too. Do I need to get my accounts audit u/s 44AB and which ITR form ITR 2 or ITR 4 should be used to file my income tax return for FY 2011-12? Kindly guide me. Thanks.

Replies (1)

CA Ankit Totla

Practicing Chartered Accountant

469 Points Posted on 06 April 2012

Giri,

Your selection of ITR forms is not based on the form used in the previous year. Since the income for the current year is STCG, FD interest and salary, you are liable to file ITR 2 and audit u/s 44AB is not required.

It should be noted that section 44AB mentions the TURNOVER OF BUSINESS. If u are saying that its STCG it means that the shares have been shown as investments and not as stock and hence the share profit is not a business activity.