SHARE TRADING ACTIVITY AND AUDIT.

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JAYESH

PARTNER

28 Points Joined September 2012

I have business income turnover Rs.6,50000/- Yearly. And share trading activities like day trading, delivery based short-term trading and future and options share trading activities.
Now my question is this can I have audit
books of accounts. And what is my main business share trading or first
one(jobwork income).
Second think can I claim expenses like brokerage,STT and other charges which was charged by broker in my PnL account.
Or I can filled this income(stock market) as my capital gain income.
I have speculation gain of Rs.19500 with turnover of Rs.10,00,000/-. I have short term gain of 60,230/- with turnover of Rs.80,00,000/-(eight lakhs). I have F&O gain of Rs.5565/- with turnover 15,00,000/-(fifteen lakhs).
Please guide me.
Thank you and ask for a fine reply.

Replies (3)

ayusmita

Tax consultant

5895 Points Joined September 2020

Yes you can aduit your account if you want
first one is your business income then share trading infact if I say both is your income
speculation is comes under business income a long with your business income
yes you claim expenses also

CA. Umesh kumar

ca.umesh11@gmail.com

1465 Points Joined October 2007

Audit is not required. Income from intra day trading is speculative business income and taxable as per slab rate applicable to you. Income from F&O taxable as normal business income, short term capital gain taxable @ 15%. Brokerage and other charges can be claimed as expenditure.

sachin sharma

39 Points Joined July 2019

Umesh sir is apsoutly right Audit is not required in the above case because short term capital gain stt paid is always tax as normal slab rate so there is no question arises for audit