Fire your tax related queries and i would get it solved!!!
its a hard task as most of the officers don't understand the nuances of derivative trading. for that matter most of the CAs dont understand that either!
lack of legal precedents make the matter worse. So what comes into play is:
1: That you present a computation of turnover on the basis of ICAI guidelines
2: Offer an alternative scenario that even if the turnover is not be calculated as per ICAI guidelines, the loss figure is not going to change.
The only bone of contention then left is in the cases where audit has not been done on that the turnover computed as per ICAI guidelines was less than Rs 1 cr. In such cases failure to convince the officer becomes a problem because if the officer goes by gross values, he will definitely add penalty for not getting the audit done.
lack of legal precedents make the matter worse. So what comes into play is:
1: That you present a computation of turnover on the basis of ICAI guidelines
2: Offer an alternative scenario that even if the turnover is not be calculated as per ICAI guidelines, the loss figure is not going to change.
The only bone of contention then left is in the cases where audit has not been done on that the turnover computed as per ICAI guidelines was less than Rs 1 cr. In such cases failure to convince the officer becomes a problem because if the officer goes by gross values, he will definitely add penalty for not getting the audit done.
Hey bhagwan. What is the penalty for not doing audit? And will the losses be allowed to carry forward in that case or will it be forfeited.
Not earned anything in derivatives but now this tension is different. I have some shares and mutual funds too. I am worried what about those transactions. Some I have sold within a month. Most I have in my demat. Would that also need auditing.
Not earned anything in derivatives but now this tension is different. I have some shares and mutual funds too. I am worried what about those transactions. Some I have sold within a month. Most I have in my demat. Would that also need auditing.
Even if your turnover is less (below the thresh hold)
Audit is necessary if you want to show a profit that is less than 8% of your turnover,
now less that 8% also means in case of Loss
Anyway enough of discussion on al this
Cheers :thumb:
Happy
Audit is necessary if you want to show a profit that is less than 8% of your turnover,
now less that 8% also means in case of Loss
Anyway enough of discussion on al this
Cheers :thumb:
Happy
Income from selling of equity (from demat) is not treated as business income and so it will not attract auditing as auditing is required for business and professional income.
Selling of equity (from demat) will be treated as STCG (if you sell within 12 months) or LTCG (if you hold it for more than 12 months) and LTCG is tax free .
I hope you do not trade intraday cash scrips.
Selling of equity (from demat) will be treated as STCG (if you sell within 12 months) or LTCG (if you hold it for more than 12 months) and LTCG is tax free .
I hope you do not trade intraday cash scrips.
Why so much panic. relax guys. Tax department is much more friendly then u think. just make sure you are confident. Keep all material ready. If you get notice, Go into hearing and explain things to AO. If he disagrees and gives some evidence against you, Tell him that you need some time. You will get adjournment easily. As far as people who are worried about penalty is concerned because of failure to get accounts audited and calculation of turnover is concerned , read some previous cases in this link.
https://indiankanoon.org/doc/37797646/
https://indiankanoon.org/doc/37797646/
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