One of the client is engaged in business of Textile garments Reail trading where turnover is 35 lacs but he is also engaged in trading of equity shares as side business where turnover exceeds 60lacs.
Query is whether Tax Audit is applicable in this scenario where Trading in equity share is side business.
Some consultants are saying YES, its applicable where some are saying NO because its not the main business.
Pls. advise
Hey,
I Think if both turnovers are shown under the same organisation, Tax audit is applicable. If turnover from Trade of textile garments is shown in a different business name, tax audit u/s 44 is not applicable.
Thanks
.
Tax Audit will be applicable.
Income from all source of trading activites will be added to check the limit of 60 lakhs.
tax audit will be applicable for both
You carry out trading m your terminal or through a stock broker???????
Coz, if you r showin d share trading income in capital gains, den tax audit is nt applicable, otherwise yes
Tax Audit Applicable if he do shares trading as business.
Dear Friend
Tax Audit is not compulsory. Share Trading is part of capital gain.
if some one says Tax Audit is compulsry i will suggest that tell them also to take TIN (VAT Registration Number also) because there is applicablity of Rs. 10 lakhs transaction.
So as per my views only conclude Textile business.
Regards
| Originally posted by : kaushal (taxbykk) | ||
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I do not understand the concept of main business. Business is business. If a transaction comes u/s 2(13) the income is charged under the head business. Trading in equity shares + trading in textile, if combined turnover exceeds 60 L audit is compulsory. https://taxbykk.blogspot.com/ |
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Dear Friend,
Lawfully it is Applicable.
But I Suggest You to Show Trading in Equity Share as Investment Activity as Capital Income.
so You Can Escape From Tax audit.
I am a salaried employee and the tax is deducted at source. My income for this year may exceed 1 Cr due to execise of ESOP. Am I liable of compulsary tax audit?
its nt applicable, since d income is nt taxable u/h PGBP
If the turnover from indivudual business doen't exceed Rs. 60 Lakhs then tax audit will not be applicable.
It is nowhere written in section 44 that tax audit will be done assesse-wise. It is business-wise. S
So in your case it will not be applicable.
As per section 44AB the agreegate income from all source is taken for limit of 60 lakh...
So Applicable.
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 6 [sixty lakh rupees] in any previous year 7 [***]; or
It is clearly mentioned in Section 44AB that turover of Business exceeds Rs. 60 Lakhs. It is nowhere written that income of assessee or businessess will be taken into consideration while determining the applicability of this section.
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