Q & A: Weather Audit is required for Intraday Share Trading
P.D.RUNGTA
Query: Weather Audit is required for Intraday Share Trading
Dear All,
I have a query regarding that if an individual is having an share transaction i.e intraday share trading exceeding 40 lacs of the volume in an year the same is fall under the audit...means the individual is required to gets his or her accounts audited under section 44AB..
Regards,
CA. Alok Sharma
Reply:1
Dear Sir,Audit in not required for Intraday transaction u/s 44AB if the turnover exceeds Rs 40.00 lacs rather if the NET Income from speculation business (in your case Intraday Transaction) exceeds Rs. 40.00 lacs then only the books need to be get audited, as in intrday transaction are squared off on the very same day, turnover is counted on net basis taking all profits and losses together, please do not deduct the losses from profit to calculate the turnover rather they are added.
Harsh Vardhan Bhardwaj, Partner,
Reply:2
Dear Mr. Alok,
In case of Intraday trading of shares, only the difference between sales
& purchase value shall be considered as turnover for the purpose of Section
44AB i.e. sum total of profit and loss shall be taken into account for
calculating 44AB limits. This has been clarified in ICAI's Guidance Note to Tax
Audit.
Ajay Agrawal
ajayag...@yahoo.com
Reply:3
THE TOTAL OF PROFIT AND LOSS ON SUCH TRANSACTIONS EXCEEDS RS 40 LACS, THEN
THE CASE FALLS UNDER TAX AUDIT AMBIT
SURESHFCA
Best Regards,
Pramod Dayal Rungta
M.Com.,LL.B.,AICWA.,DISA(ICAI).,FCA
Member EIRC ICAI (2010-12)
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