Discussion on section 44AD of IT Act
- Thread starter lemondew
- Start date
Re: General Trading Chat
Some CAs do that calculation but charge another 15-20 K for this calculation apart from Audit fees....no CA will do it free....I know few traders maintaining excel sheets tradewise...but these traders do may be 100 trades in a year....
But I am hoping that Govt will atleast comeout with Turnover defination and end this ambiguity.
ST
Some CAs do that calculation but charge another 15-20 K for this calculation apart from Audit fees....no CA will do it free....I know few traders maintaining excel sheets tradewise...but these traders do may be 100 trades in a year....
But I am hoping that Govt will atleast comeout with Turnover defination and end this ambiguity.
ST
Re: General Trading Chat
Lets see. I can tell you a small script can be created which will read excel and calculate the total turnover. i.e buy/sell qty * buy/sell value for each row in excelsheet All you ll need is an excel sheet with all trades in 1 year. Anyways lets see how it goes.
Lets see. I can tell you a small script can be created which will read excel and calculate the total turnover. i.e buy/sell qty * buy/sell value for each row in excelsheet All you ll need is an excel sheet with all trades in 1 year. Anyways lets see how it goes.
Last edited:
Re: General Trading Chat
I came across this article on taxation on futures and options trading.
http://trak.in/tags/business/2012/07/09/tax-return-filing-futures-options-fo-trades/
For calculation of turnover it says:
Turnover Calculation
Now, here comes the point calculation of turnover. Determination of turnover in case of F&O is one of the important factors for every individual for the income tax purpose. Turnover must be firstly calculated, in the manner explained below:
The total of positive and negative or favorable and unfavorable differences
shall be taken as turnover.
Premium received on sale of options is to be included in turnover.
In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.
Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.
I came across this article on taxation on futures and options trading.
http://trak.in/tags/business/2012/07/09/tax-return-filing-futures-options-fo-trades/
For calculation of turnover it says:
Turnover Calculation
Now, here comes the point calculation of turnover. Determination of turnover in case of F&O is one of the important factors for every individual for the income tax purpose. Turnover must be firstly calculated, in the manner explained below:
The total of positive and negative or favorable and unfavorable differences
shall be taken as turnover.
Premium received on sale of options is to be included in turnover.
In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.
Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.
Re: General Trading Chat
My CA told me we have reasonable cause for not auditing books.
What is the penalty for not getting the accounts audited as required by section 44AB?
According to section 271B, if any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB, the Assessing Officer may impose a penalty. The penalty shall be lower of the following amounts:
(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such year or years.
(b) Rs. 1,50,000.
However, according to section 273B, no penalty shall be imposed if reasonable cause for such failure is proved. Such penalty can be imposed only after giving the taxpayer a reasonable opportunity of being heard.
- See more at: http://taxguru.in/income-tax/faqs-t...income-tax-act-1961.html#sthash.epQYVMY2.dpuf
My CA told me we have reasonable cause for not auditing books.
What is the penalty for not getting the accounts audited as required by section 44AB?
According to section 271B, if any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB, the Assessing Officer may impose a penalty. The penalty shall be lower of the following amounts:
(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such year or years.
(b) Rs. 1,50,000.
However, according to section 273B, no penalty shall be imposed if reasonable cause for such failure is proved. Such penalty can be imposed only after giving the taxpayer a reasonable opportunity of being heard.
- See more at: http://taxguru.in/income-tax/faqs-t...income-tax-act-1961.html#sthash.epQYVMY2.dpuf
Re: General Trading Chat
The above says min of 0.50% of total turnover or 1,50,000.
So 20 lac turnover means 10000 penalty if they prove ushd ve audited.
how did u get 10 lac figure now.????
trading to fir bhi kar lenge magar ye tax ka kya kare :rofl::rofl:
The above says min of 0.50% of total turnover or 1,50,000.
So 20 lac turnover means 10000 penalty if they prove ushd ve audited.
how did u get 10 lac figure now.????
trading to fir bhi kar lenge magar ye tax ka kya kare :rofl::rofl:
10 lac IT penalty or 6 months imprisonment wich one you choose ? 
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