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Turnover of Delivery Based Trading covered under Audit

Vinod Kapoor (Taxpayer) (112 Points)

16 September 2021

More often than not,the turnover in Delivery Based Trading,crosses the limit of Rs 2 Crores.
Is this turnover in delivery based trading cones under the ambit of 'Audit Requirement ?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 16 September 2021

Even if you have the shares trading business (be it delivery based); but till your total receipts & payments (which include other than these business also) are digital, or say more than 95% by banking channels; in that, case tax audit not applicable for turnover up to 10Crs.

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Vinod Kapoor (Taxpayer) (112 Points)
Replied 20 September 2021

Thanks sir for your guidance.
Kindly also guide that in case of delivery based trading,if I frequently buy and sell the equity of a particular company and thus the sum total of equity acquired of that particular company exceeds Rs 10 lakhs;then would it be treated as a 'High Value Transaction' ?
If yes,then almost all the traders of delivery based equity would come under the preview of' 'High Value Translations' ?

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