Dear Chartered Accountant professionals,
I am not making any allegation against anybody, but I need to state that "there is considerable confusion among practising chartered accountants" on TAX AUDIT OF SHARE TRADING ACCOUNTS causing anxiety and misery to people who consult them. Over the last few years I have sufferred much on account of wrong "expert opinion" by subjecting myself to audit when it was not necessary and not getting audited when it was needed.
I AM IN SHORT SO FRUSTRATED THAT I WANTAN EXPERT WHO REALLY KNOWS TO THE FOLLOWING CAREFULLY AND PL FOR HEAVENS SAKE GIVE ME THE RIGHT ADVICE(MEANING AN OPINION ACCEPTED BY THE INCOME TAX DEPARTMENT)
DATE FOR WHICH OPINION O WHETHER TAX AUDIT OF SHARE TRADING ACCOUNTS ARE REQUIRED FOR FY 2020-2021( AY 2021-2022) :
TOTAL TURNOVER IN SHARE TRADING WITH TURNOVER CALCULATED AS PER NORMS: 94 LAKHS.
NET BUSINESS INCOME(ITR-3) FROM SHARE TRADING AFTER DEDUCTION OF ELIGIBLE EXPENSES: Rs 132000/-.( pl note at this point that share trading turnover is less than 1 crore and income from business does not match upto 6%)
My total income for FY 2021 which includes the above busines sincome, pension, and interest on deposits from bank after deduction of eligible investments etc under sec 80C to 80 U is Rs 391000/-. This taxable income results in a tax of about Rs 4520/- WHICH BECOMES NIL AFTER APPLICATION OF REBATE UNDER SEC 87 A.
Now the second issue to be noted is that I am not paying tax but taxable income before application of 87 A is above the maximum chargeable to tax. My exemption limit as a senior citizen is Rs 3 lakhs.
3 certified CA's say I do not have to auidt my accounts.
2 certified CAs say I have to because although the turnover is less than 1 crore , my total income breaches the taxable limit. THEY REFER TO SEC 44 AB AND 44 AD.
Honestly as a layman I now have a poor estimation of some CA;s................. cant help it.
CAN ANYONE PLEASE CLARIFY THE ACTUAL RULE- AND JUSTIFY IT WITH REFERENCES TO THE INCOME TAX ACT. ....................................PL HELP.