Urgent : Tax audit or not

both

Pls explain to me also definition and tax audit impact of F&O?

Neha and Bala.. Please refer below:

/experts/audit-380765.asp

still have any questions can get back to me... no probs..

Hi...

According to me TAX AUDIT is NEEDED ..... Its because as per Sec 44AB   every person carrying on business shall require tax audit to be done if his Gross Receipts , Total Sales , Turnover  exceeds 40lakhs rupees ....

In ur case F&O will be considered as business income and for the purpose of tax auit turnover will be seen inspite of whatever ur profit or loss may be .. ur F&O turnover exceeds rs.40lacs.

ALL THE BEST

Vinay...Please read sections properly......jsut for your knowledge only i m advicing you.

Dear friends

Mr. Shivang is correct. Normally in share business in intraday we take only settled profit or loss of the same day and in same way in F & O we take profit or loss on the day of settlement. But in case U engage in business of trading in shares than only value of purchase & sales will form part of turnover otherwise Profit / loss will form part of T.O. please refer sec. 43(5)and U can read book of ICAI "Issues on Tax Audit"

Surana , Chennai

09952967237

mr shivang i am a investor in fno and cash and my turnover in fno so far in this ay2011-2012 is 1.50 cr  in which i have incurred net loss of around 54000in fno and major loss is in nifty options. so do i need to get a tax audit pls help me .... 

your turnover is below of limit u/s44AB hence not tax audit is require..

Mr shishir.

i guess the turnover in F&O is 1.5 crore and not in lakhs. please correct me if i am wrong.

For F&O you need to check the profit and loss for the scriptts if its a day trading. and i dont think so it will exceed 60 lacs.

you can send me the details.

no tax audit....
 

thank you shivang and pankaj sir .... 

sir but currently i m searching for a job and i do trade till i find a good job so it wont be counted as my business right 

no.. its not considered as business

In F & O or derivative trans. we should take only settlement amount not purchase and sales. therefore U have to take profit/Gross Receipts . If it cross prescribed limit than only it will come under 44AB. and same way in intraday You hav to consider only Gross Receip/Profit from particular trans. not purchase & sales . only squareup profit.