Turnover for people who trade in shares

Tax queries 1376 views 3 replies

Ramanathan

Article Assistant

135 Points Joined September 2007

Dear Friends,

one of my friend trade in shares, both intra day and on delivery basis. How is turnover to be determined for tax audit u/s 44AB? is there any specifice circular from the department or is there any case laws for this?

he do have other business in which he has a turnover less than 40 lacs. should i include turnover on shares for which he takes delivery and intraday or should i consider only the shares for which delivery is taken or should i ignore both?

please let me know about the circular or case law ?

Replies (3)

Late CA Sampat Jain

Chartered Accountant

4772 Points Joined March 2007

download /files_display.asp?files_id=3236

CA. O.P. Agarwalla

C.A.

2916 Points Joined November 2007

Sampat Ji Sir, Reply of the above querry is not there in the refered file. I think, if the income or loss from share transactions are liable in the case of assessee for IT as business income or loss, entire amount of sales (irrespective of the fact, whether delivery has been taken or not) will be termed as turnover.

Guest

439655 Points Joined August 2012

According to the guidance notes of the ICAI. FOR TAX AUDIT FOR THIS ISSUE SAYS' WR The contract is settled otherwise and squared up by paying out the difference which may be positive or negATIVE, in such transaction the difference amount is 'turnover' I.E. THE RESULT OF NEGATIVE AND POSITIVE DIFFERENCE. PL