Are You Covered Under Tax Audit

[travi]

then audit the deductions ....

Audit therefore means "full audit", can't be partial :thumb:

 

[travi]

For calculating TurnOver, we don't consider taxes and other charges paid?

Also, can someone give some examples of Options TurnOver calculation?

Futures TurnOver calculation is clear to me if we consider only buy and sell price for individual contracts.


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Go through the post again.
Your F is supposed to be SUMOF(ABS(S - B)) , sum of all profit or loss trades(Don't subtract the loss, added. Its called absolute value)
For O,
1. All the SELL, ie., absolute sum of all SELL trx plus
2. where in trx, SELL - BUY > 0 (which means profit), sum of all absolute(profit)
Total O TO = 1+2

 

[tarun1313]

Go through the post again.

Your F is supposed to be SUMOF(ABS(S - B)) , sum of all profit or loss trades(Don't subtract the loss, added. Its called absolute value)

For O,

1. All the SELL, ie., absolute sum of all SELL trx plus

2. where in trx, SELL - BUY > 0 (which means profit), sum of all absolute(profit)

Total O TO = 1+2

For O,

If I sell 75 qty @110 and then buy @100

Does that mean TurnOver =
75 * 110 + 75 * (110-100) = 9000?


And what about taxes and other charges?


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[travi]

For O,

If I sell 75 qty @110 and then buy @100

Does that mean TurnOver =
75 * 110 + 75 * (110-100) = 9000?

And what about taxes and other charges?
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Correct, but, if you made loss, don't subtract that amount bcos as per your current formula, that will happen.

TO will not include any taxes, brokerage etc.
All the tax, brokerage etc will be added to Business Expense and deducted there against your gross income.

So, in above trx your Income = 750,
less expenses, say. brokerage tax etc = 200
So net profit = 550

 

[tarun1313]

Correct, but, if you made loss, don't subtract that amount bcos as per your current formula, that will happen.



TO will not include any taxes, brokerage etc.

All the tax, brokerage etc will be added to Business Expense and deducted there against your gross income.



So, in above trx your Income = 750,

less expenses, say. brokerage tax etc = 200

So net profit = 550

F&O Gross Profit - 17,000
TurnOver - 1,96,000 ( greater than 8%)

Total Charges - 24,000

Net Loss = 7,000

So, I can carry forward these losses, right? And I don't even need to go for Audit?


Apart from this, I was having 4,000 Short Term Profit in equity - charges = 400.





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[travi]

F&O Gross Profit - 17,000
TurnOver - 1,96,000 ( greater than 8%)
Total Charges - 24,000
Net Loss = 7,000
So, I can carry forward these losses, right? And I don't even need to go for Audit?
Apart from this, I was having 4,000 Short Term Profit in equity - charges = 400.
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Is your total income from all sources above or below 2.5L ?

 

[tarun1313]

Is your total income from all sources above or below 2.5L ?

I'm already in 20% tax slab.


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[travi]

I'm already in 20% tax slab.
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Then u need audit

 

[tarun1313]

Then u need audit

Post #101 says if gross profit > 8% then we don't need Audit.

Then why I need to go for Audit?

In my case also, profit is more than 8%.


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[tarun1313]

Post #101 says if gross profit > 8% then we don't need Audit.

Then why I need to go for Audit?

In my case also, profit is more than 8%.


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Because of either of these two?

1. I am setting of 7000 profit with charges and brokerages ending up negative net profit?
2. I want to carry over my losses so that I can set it off next year?

If that is the case, can I set off these losses with my other business profit? I am working as a freelancer.


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