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Speculation of shares

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my client done speculation of shares.
total consideration above 3 crores.snd purchases also 3 crores.
will he under tax audit purview
Replies (4)
Audit liability arises only if the sum of positive and negative differences exceeds the threshold limit that is 1 crore
44 AB applicable or not

If trades are from intraday then purchase and sale value is irrelevant.
What you need to do is calculate profit and loss on each trade individually (without considering brokerage and other COA expenses)
Now you need to ignore negative value from all loss trades and sum it up
In excel this can be done easily using ABS Formulae

 

Yes, tax audit is applicable.


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