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Tax Audit

Tax planning 1081 views 4 replies

CA Vinay Saraf

148 Points Joined January 2008

I would like to know whether there is any specific criteria for tax Audit for the person who buy and sell shares on a large scale (say daily base of 20 lacs )

Replies (4)

CA. Amit Daga

Finance Controller CA. CS. CFA. CIFRS.

9017 Points Joined October 2007

Vinay buy and sell shares are covered in the speculation. One income/Loss is always covered under only one head

parthasarathy

Practising C.A

188 Points Joined August 2007

Hi, Income from Speculation business is an income under head :Profits and gains of Business or Profession", As per Section 44AB, "Assessee carrying on any business where total sales/turnover/gross receipts exceeds Rs.40 lakhs" is liable for tax Audit. Speculation business is covered in the phrase "any business". Hence if you deal in share trading, i.e buying and selling of shares, in intra day without taking delivery, and your gross turnover exceeds Rs. 40 lakhs, you are liable for Tax Audit U/s 44 AB.