Tax audit and taxability of capital market transactions

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1) if a client does transactions in derivative segment then for tax audit purpose the turnover is :

a) the absolute sum of loss and profit ( 70 lakhs) ( if profit is 40 lakhs and loss is 30 lakhs)? or

b) the difference of  profit and loss ( 10 lakhs) ( if profit is 40 lakhs and loss is 30 lakhs)?

 

2) if the client does transactions in cash segment then for tax audir purpose the turnover is :

       a)if the client treats the transactions under business head:

       i) the absolute sum of buy value and sell value ( 70 lakhs) ( if buy value is  40 lakhs and sell value is  30      lakhs)? or

      ii) the difference of buy value and sell value  ( 10 lakhs) ( if buy value is  40 lakhs and sell value is  30 lakhs)?

        

       b) if the client treats the transactions under capital gains:

        i) the absolute sum of buy value and sell value ( 70 lakhs) ( if buy value is  40 lakhs and sell value is  30      lakhs)? or

      ii) the difference of buy value and sell value  ( 10 lakhs) ( if buy value is  40 lakhs and sell value is  30 lakhs)?

      iii) only sale value

 

3) If a client does transactions in derivatives as well as cash segment, then for tax audit purpose then how is the turnover decided?

a) the absolute sum of loss and profit ( derivatives )( 70 lakhs) ( if profit is 40 lakhs and loss is 30 lakhs)? or

b) the difference of  profit and loss ( derivatives)  ( 10 lakhs) ( if profit is 40 lakhs and loss is 30 lakhs)

 c) if the client treats the cash market transactions under business head:

       i) the absolute sum of buy value and sell value ( 70 lakhs) ( if buy value is  40 lakhs and sell value is  30      lakhs)? or

      ii) the difference of buy value and sell value  ( 10 lakhs) ( if buy value is  40 lakhs and sell value is  30 lakhs)?

4) If a client does transactions in derivatives as well as cash segment, then for tax audit purpose then how is the turnover decided?

a) the absolute sum of loss and profit ( derivatives )( 70 lakhs) ( if profit is 40 lakhs and loss is 30 lakhs)? or

b) the difference of  profit and loss ( derivatives)  ( 10 lakhs) ( if profit is 40 lakhs and loss is 30 lakhs)

 c) if the client treats the cash market transactions under capital gains:

       i) the absolute sum of buy value and sell value ( 70 lakhs) ( if buy value is  40 lakhs and sell value is  30      lakhs)? or

      ii) the difference of buy value and sell value  ( 10 lakhs) ( if buy value is  40 lakhs and sell value is  30 lakhs)?

      iii) only sale  value

 

 

Replies (2)
Explain in lehman language bro... not as per British language

Any ca, tax consultant or accountant can do complete accounting of stock market transactions in 3 hours max, irrespective of turnover, with the help of attached reports. All the required information is given in the covering letter. For any queries feel free to contact me.

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