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Urgent 44ad query

Ramandeep singh (CA-final,M.com (Final)) (59 Points)

29 July 2011

whether 44AD Will be applicable on the shares bussiness. If a person engage in share trading bussiness and has a sale of share is 30 Lakh and he has a loss from sale of share whether he is required to get audit or have to show 8% Profit( Share income is the income which is very clear because the transaction always goes from d-mat a/c)

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2 Replies

Dheeraj (Learner) (1100 Points)
Replied 29 July 2011

yes, it attracts audit

furthur intra day transactions' sale purchase don't amount to sale purchase in normal course

only profit on intraday add in total sales

Dhawal Vora (Self Employed) (64 Points)
Replied 29 July 2011

Please note the following

1. Remove the intra day trades and only add profit or loss from those trades into your considered sale.

2. After that compute 8% of your Sales/Gross Receipts, if you do not fall under the Taxable Bracket then you don't need to Audit your file in order to show a loss or even claim less than 8% as nett profit.

(As per my working, if you are a Male and your Sales/Gross Receipts are less than 2000000 (20 Lacs) you don't need to audit your file for claim loss or less than 8%)