Hi,
I am sorry to ask this question since you might have replied similar question earlier ,I couldn't read all the posts.
My Questions are:
1.I trade in intraday,short term and in F&O,so how to calculate the turnover for each?
2.Do i need to maintain any book of accounts,if yes how is that done
3.while filing return do i need to submit all the electronic contract notes printouts?
4.how to add this income in my salary income?
5.when is tax audit applicable in each case that is intraday trading and F&O.
please guide,it will be helpful to me.
Dear,
1.) Tax audit is to be done when one's turnover is above 40 Lacs...For those in other industry it is the basic sale achieved....But in the case of transactions of F&O there is a difference...
For the purpose of F&O transactions the limit of 40 Lacs is the profit or loss in absolute terms...Let me explain with an example....
Suppose you bought one lot of 150 shares of Financial Technology at Rs. 3000...Then you sold it at 3100....Therefore your profit is 100*150=15000...
Now you bought one lot of 1400 shares of HCC at 100 and then sold it for 110...so your profit if 10*1400=15000...
Third, you bought one lot of 8000 shares of IFCI at 60 and then sold it for 50...so you incur a loss of Rs. 10*8000=80000...
therefore for the purpose of determining the total turnover you achieved would be 15000(FTIL profit) + 14000(HCC profit) + 80000(IFCI loss) = 1,19,000....
it would not be the total transaction values but the absolute profit or loss incurred in the transactions...
I hope it is now clear .....
2.) Books of accounts are required of the income from business exceeds 1,20,000 so judge from yourself....In any case i suggest maintenance of books.
3.) NOTHING is to be attached with your ITR.....absolutely NOTHING !!!
4.) Very simple.....simply add both the incomes and then calculate the tax payable on them....
5.) Tax Audit is required when the sale exceeds 40 lacs....determine it according to the formula given to you in the Answer 1....