my client sold shares for consideration of 1.20 crores.. major are short term. weather tax audit applicable. but net realised profit is 5.6 lakhs. simply file the return showing profit. pls. clarify.
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A client sold shares for a consideration of 1.20 crore rupees, with the majority being short-term gains resulting in a net profit of 5.6 lakhs. The core question is whether a tax audit is applicable. If treated as capital gains from a personal investment, no audit is typically required, regardless of the sale value. However, if considered business income, an audit may become mandatory.