Are You Covered Under Tax Audit

Happy_Singh

Happy_Singh

Happy
#252
#252
VJAY

VJAY

Well-Known Member
#255
#255
Reposting Nikhilji's recent post about tax of new thread

In the last year's budget, govt of India amended the section 44AD.

This current post covers the revised tax positions based on the section 44AD as it stands post amendments:

Key changes are as under:

1. The turnover limit under 44AD now stands at Rs 2 CR

2. Once you choose an option ie declaring profit in excess of 8% of declaring profit less than 8% and going for audit, such an option has to be uniformly applied for next 5 assessment years too.

At present the applicability of maintenance of books of accounts and audit is as under:

1. Your turnover is in excess of Rs 2 cr - audit abd maintenance of books is compulsory irrespective of profit or loss.

2. Your turnover is less than 2 cr but you either earn profit is equivalent or in excess of 8% of turnover or even if your profit is less than 8% of turnover but you decide to declare profit equivalent or in excess of 8% of turnover - No audit is applicable

3. Your turnover is less than 2cr but you earn profit less than 8% of the turnover and do not want to declare higher profit and your TOTAL INCOME is LESS than EXEMPTED LIMIT- You need not maintain books of accounts. No Need to get the books audited.

4. Your turnover is less than 2cr but you earn profit less than 8% of the turnover and do not want to declare higher profit and your TOTAL INCOME is MORE than EXEMPTED LIMIT- You have to maintain books of accounts and get the books audited.

The above should cover all possible scenarios.

For clarification, Total Income is Income before deductions like 80C deductions.

Books of Accounts should include:

1. Documentation including contract notes, margin statements etc

2. Ledger including margin accounts, accounting representation of buy and sell transactions, bank statement, other accounts as may be applicable to specific cases like loan account, interest paid, etc etc

3. Profit & Loss Account, Balancesheet, Trail Balance.

Please note that different CAs and lawyers can have a different opinion on questions of law. Whatever opinion you may agree to, please ensure that you have verified your position to the extent possible.
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traderniftybull

Well-Known Member
#256
#256
VJAY said:
is this correct turnover ?means sum of option trading profit+loss+selling premiums?
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Yes, this is the problem with option turnover calculation, ridiculous and full of faults, that suits govt, tax department and tax experts. So no body want to rectify the mistake/error in the calculation. :annoyed:
Aur traders ki koi sunta nahi, they have no voice to raise. :D

VJAY said:
Okey ...you are in loss so why you need audit etc? :D

I think we again wait for nikhilji's reply :)
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Thats another grey point, of our taxation, that suits govt, tax department and tax experts. :annoyed:
 
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traderniftybull

Well-Known Member
#257
#257
Happy_Singh said:
ha ha then why not ask to go through the tax code . . .

no need for the thread or any thread for that matter

badiya hai


Happy :)
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ha ha

What you want to say, that if you want some explanation then I should post all links.
Badiya hai
 
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elwavetrader

Active Member
#259
#259
elwavetrader said:
Nikhil Sir

FM in his budget speech announced a presumptive scheme of 6% (instead of 8% at present) for traders, who use digital (online) means only (something like this). Is this scheme applicable to FnO traders also, as we FnO traders use only online means for our trading. Can you please post details about this. Thanks
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elwavetrader said:
Nikhil Sir

Please point out the incomes that can be adjusted with trading loss, out of the following incomes, namely

1. Salary (not adjustable, I know)
2. Income from house property (any difference between residential and commercial property income)
3. Income from speculative gains
4. Short term capital gains
5. Long term capital gains
6. Income from fixed deposit
7. Savings bank account intrest

Please do add such other incomes, if I have missed some. Thanks
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It is very surprising, no one in the forum is willing to seek reply for these two queries, as these are my personal queries.
Bhayion, these are not my personal queries and answers to these will be useful to every trader here in the forum.
 
FnOtrader80

FnOtrader80

Member
#260
#260
elwavetrader said:
It is very surprising, no one in the forum is willing to seek reply for these two queries, as these are my personal queries.
Bhayion, these are not my personal queries and answers to these will be useful to every trader here in the forum.
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1. Salary - No
2. Income from house property (any difference between residential and commercial property income) - Yes in the same year. If carried forward can only be adjusted against income/loss from house property only
3. Income from speculative gains - Yes But speculative losses can be carried forward for 4 yrs and adjusted against future speculative gains only.
4. Short term capital gains - No
5. Long term capital gains - No
6. Income from fixed deposit - Yes
7. Savings bank account intrest - Yes

PLease refer this link for detailed info : http://www.incometaxindia.gov.in/Tutorials/21- MCQ set off and carry frwrd.pdf
 
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