tax audit or normal return..

if a person having INCOME FROM 1)salary (2,00,000)&
2)also doing share market.
a)(EQUITY_dealt with intraday,short-term)
(buy value=3,00,00,000
sale value =2,97,00,000
Loss =3,00,000)


Loss 50000 from intraday, &250000 from short-term(holding more than 1day)



b)FUTURES& OPTIONS
(LOSS_RS.5000)..


please advise..

1)tax audit is applicable??
turnover is considered a or b.
a) sale value (2.97cr) or
b) loss value(3lakhs)...

I searched in google..few are saying a few are saying b..

so please share exact information
2)WHICH ITR??3/2/1.
Replies (7)
Accordingly, the aggregate of both positive and negative differences is to be considered as the turnover of such transactions for determining the liability to audit vides section 44AB, whether the differences are positive or negative.

DETERMINATION OF TURNOVER IN RESPECT OF NON SPECULATIVE TRANSACTION

Determination of turnover in case of F&O is one of the important factors for every individual for the income tax purpose. Turnover must be firstly calculated, in the manner explained below:

1. The total of positive and negative or favorable and unfavorable differences shall be taken as turnover.

2. Premium received on sale of options is to be included in turnover.

3. In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.
thanks..in this case net loss is 3lakhs.. so no tax audit.. right??.. & ITR NO 3 RIGHT??..
First compute turnover as stipulated above for example Purchase sale net profit or loss 100 150 50 100 80 -20 120 90 -30 150 120 -30 Here the total turnover is 130 and not (-30).
thankyou once again..
could you please advice below 5..
1)I understood above point. i will calculate turnover like above.. if turnover is exceed 1crores then tax audit is mandatory..??
2) ITR NO Please..
3) can I carry forward current year loss of 3lakhs..(earlier year loss is 1.5 lakh..) TOTAL 4.5 LAKHS..
4) IS IT EFFECT THE CREDIT RATING IN FUTURE OF TAX PAYER..
5) i think it is affect credit rating.. so can I simply ignore all these.. and just income tax return only for 2lakhs of his salary..
THANKS IN ADVANCE..
1. If turnover doesn't exceeds 2 crores, either you have to declare 6% of turnover or you have to audit if your total income exceeds 2.5 lakhs
2. If you opt for 44ad then go for ITR 4 else ITR 3
3. Yes, for that you need to file ITR within time under 139(1)
4. maybe, no idea
5. if you ignore share trading, then there's possibility that your ITR may be selected for scrutiny
Hi,
Turnover calculated as per procedure is 98LAKHS..so no tax audit...small doubt..u r saying turnover 2crs, I googled tax audit limit is 1cr.. Could you please elaborate/confirm..

Further,
1)IS STT (securities transactions tax) ALLOWED..

2) INTERSET ON LOAN WHICH WAS TAKEN FOR INVESTING SHARES..IS IT ALLOWED...

3) INTERSET ON DELAYED PAYMENT CHARGES TO SHARE BROKER..IS ALLOWED...
4) is brokerage allowed...

5)IN ITR 3 ..I FOUND ONLY CAPITAL GAIN SECTION ( FOR MORE THAN 1DAY PROFIT & LOSSES )
BUT I DIDN'T FOUND SPECULATION COLUMNN.( FOR INTRADAY PROFIT OR LOSSES)..WHERE I NEED TO PROVIDE ... please tell me the column number/path...

THANKS..
For tax audit, the limit is 1 cr. If you wanna opt for 44ad, your turnover shouldn't exceed 2 cr. 1. Not allowed 2. Yes 3. Yes 4. Yes 5. In the schedule for p & l account, sl. No. 65

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