Are You Covered Under Tax Audit

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canikhil

Well-Known Member
#11
#11
Anyways, for a more structured response, you should understand that for tax purposes, the concept of including loss in income comes from various judgments including that of Supreme Court of India such as CIT vs. Harprasad & Co. Pvt. Limited (1975) 99 ITR 118 (SC)

Many writers have tried to argue that loss should not be equated as income. You can refer to an article like this one https://www.bcasonline.org/articles/artin.asp?1127 by P Nayak.

But such articles or not, it is settled that a Supreme Court Judgment is the law of land. So while grammatically income and loss may stand against each other as antonym, for anyone who is an accountant or a tax con, it is a simple system - when expenses exceed revenue, it is a loss and when reverse happens, it is a income. The tax laws clearly provide for what to do in each case.
 
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oscaramandus11

New Member
#12
#12
canikhil said:
Anyways, for a more structured response, you should understand that for tax purposes, the concept of including loss in income comes from various judgments including that of Supreme Court of India such as CIT vs. Harprasad & Co. Pvt. Limited (1975) 99 ITR 118 (SC)

Many writers have tried to argue that loss should not be equated as income. You can refer to an article like this one https://www.bcasonline.org/articles/artin.asp?1127 by P Nayak.

But such articles or not, it is settled that a Supreme Court Judgment is the law of land. So while grammatically income and loss may stand against each other as antonym, for anyone who is an accountant or a tax con, it is a simple system - when expenses exceed revenue, it is a loss and when reverse happens, it is a income. The tax laws clearly provide for what to do in each case.
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Hi,

Thanks for your informative reply, appreciate it. The link's article is interesting, confusing and puzzling.

Any ways a very good article to read and understand that legislators use rather twist words and frame sentences, which requires apex court intervention to simplify.

Tax laws have been, are and will be ambiguous.

Thanks again.

Rgds,
Oscar
 
C

canikhil

Well-Known Member
#13
#13
Oscar,

only if everything in the world could be reduced to simple sentences, lawyers and chartered accountants would be rendered useless.

So for all the discomforts that it may cause, I would prefer the law to remain as complicated as it is till the time I have to depend on this profession for my living :)
 
C

canikhil

Well-Known Member
#14
#14
mechtrader said:
Hi CA nikhil,

Gr8 informative post by you.
Can you pls explain how do we calculate turnover here assuming we trade only in Futures.

Thanks,
MT
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Dear MT,

For futures, you need to compute turnover as follows,

For each contract, first compute the profit/loss. Then multiple each loss figure with -1. Then these absolute values of loss and profits need to be summed up.

For eg:

you enter into two contracts. On first contract, you have a net profit of Rs 100 and on the other, Loss of Rs 50. (in excel the loss will appear as -50). So multiply -50 by -1.

So your turnover will be Rs 100 + (-50*-1) = 150
 
E

eku

Well-Known Member
#15
#15
canikhil said:
Case 1.

Turnover : Below Rs 1 cr
Gains/Loss from Business: 240000
Salary Income: No
any other income: Nil

Audit not required as condition of income exceeding maximum exemption limit not fulfilled
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Nikhil Sir,I fall under case 1.


My query is-1)Is it really mandatory to file a return when my income from trading+other sources is below 2 Lacs.
2)Last year I didnt file the return(AY 2014-15).If I want to file it,is there any fine?

-eku
 
Relish

Relish

Well-Known Member
#19
#19
Hi I fall in category 1

But if we had losses ( as i Had) How can we claim if we don't audit our books? Please guide. Thank's.
 
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