Are You Covered Under Tax Audit
- Thread starter canikhil
- Start date
- Tags 44ab 44ad ay 2015-16 tax audit
I am able to understand the Tax Laws part of it, but never been able to digest what that less than 8% is supposed to signify.
Anyway, since Traders are considered as business income ppl, its like having big TO and increasing expenditure to evade tax
Then you can travel first class to attend trading course 2 days and party(for 5 days), then go back home :clap:
Anyway, since Traders are considered as business income ppl, its like having big TO and increasing expenditure to evade tax
Then you can travel first class to attend trading course 2 days and party(for 5 days), then go back home :clap:
Unfortunately the petition has been closed with 1284 supporters. There wasn't much awareness about the campaign. Seems most traders trade very low volumes such that they are not concerned about Section 44AD at all.
Zerodha Campaign is struggling to get 1500 ppl to push this petition
https://www.change.org/p/minister-o...-securities-and-derivatives-from-section-44ad
Ravi Bhai, plz support
https://www.change.org/p/minister-o...-securities-and-derivatives-from-section-44ad
Ravi Bhai, plz support
Unfortunately the petition has been closed with 1284 supporters. There wasn't much awareness about the campaign. Seems most traders trade very low volumes such that they are not concerned about Section 44AD at all.
Many think tht if we make profit then only meet CA.no profit>no tax>no CA.
I also didnt hv idea abt all these things until last tym 1 got notice frm IT,my broker also never discussed all these.Bcuz very rare ppl r actually making money trading f&o.
hi,canikhil,travi & others who knw mch abt this IT stuffs-
I hv few queries,lot of cobwebs is there.pls clear my doubts.I found contradictory replies all over the internet.pls answer it point by point.
When we say 8%-
1)for turnover,8% of 2Crs or 8% of my f&o turnover we are considering?
8% of 2Crs=16L
8% of my f&o turnover 32L=2.56L
44AD-
2)if profit is jst 50k or no trades taken whole yr & we jst hv to show some FD interst,do we file ITR4 using 44AD?or some other section?
mock examples-
3)f&o turnover is 35L,8% of 35L is 2.80L
Profit made is just 1.5L.
Do we need audit?
4)f&o turnover is 35L,8% of 35L is 2.80L
Profit made is 4L
But tax is nil after deduction,Do we need audit?
5) f&o turnover is 35L,8% of 35 is 2.80L
Profit made is 6.68L
Do we need audit?
6)f&o turnover is 1.25Cr,8% of 1.25Cr is 10L
Profit made is 14.33L
Do we need audit?
7)if we have an income above the tax slab(2.5L),we have to do an audit anyhow?
8)if we have an income Zero,but turnover is abv 2Crs,we anyhow have to do an audit?
I hv few queries,lot of cobwebs is there.pls clear my doubts.I found contradictory replies all over the internet.pls answer it point by point.
When we say 8%-
1)for turnover,8% of 2Crs or 8% of my f&o turnover we are considering?
8% of 2Crs=16L
8% of my f&o turnover 32L=2.56L
44AD-
2)if profit is jst 50k or no trades taken whole yr & we jst hv to show some FD interst,do we file ITR4 using 44AD?or some other section?
mock examples-
3)f&o turnover is 35L,8% of 35L is 2.80L
Profit made is just 1.5L.
Do we need audit?
4)f&o turnover is 35L,8% of 35L is 2.80L
Profit made is 4L
But tax is nil after deduction,Do we need audit?
5) f&o turnover is 35L,8% of 35 is 2.80L
Profit made is 6.68L
Do we need audit?
6)f&o turnover is 1.25Cr,8% of 1.25Cr is 10L
Profit made is 14.33L
Do we need audit?
7)if we have an income above the tax slab(2.5L),we have to do an audit anyhow?
8)if we have an income Zero,but turnover is abv 2Crs,we anyhow have to do an audit?
Instead of answering several scenarios you have drawn, follow the simple maxims:
1. If the turnover is above the audit limit (Rs 2 cr at present), the audit is compulsory irrespective of the profit or loss.
2. If the turnover is below 2 cr but the profit is above 8%, then no audit is required. File the return under 44AD (use ITR4 or ITR4s depending on other conditions)
3. If the turnover is below 2cr and the net profit is below 8% of the turnover but the total income (including all sources) (before providing for 80C deductions etc) is above the exempted limit (currently Rs 2.5 lakhs), then audit is required.
4. If the turnover is below 2cr and the net profit is below 8% of the turnover but the total income (including all sources) (before providing for 80C deductions etc) is below the exempted limit (currently Rs 2.5 lakhs), then no audit is required. In such a scenario, another factor that arises is that you are not required to file the tax return either (as per section 139). However, it is advisable to file the return every year to account for all the incomes irrespective of taxability
1. If the turnover is above the audit limit (Rs 2 cr at present), the audit is compulsory irrespective of the profit or loss.
2. If the turnover is below 2 cr but the profit is above 8%, then no audit is required. File the return under 44AD (use ITR4 or ITR4s depending on other conditions)
3. If the turnover is below 2cr and the net profit is below 8% of the turnover but the total income (including all sources) (before providing for 80C deductions etc) is above the exempted limit (currently Rs 2.5 lakhs), then audit is required.
4. If the turnover is below 2cr and the net profit is below 8% of the turnover but the total income (including all sources) (before providing for 80C deductions etc) is below the exempted limit (currently Rs 2.5 lakhs), then no audit is required. In such a scenario, another factor that arises is that you are not required to file the tax return either (as per section 139). However, it is advisable to file the return every year to account for all the incomes irrespective of taxability
Similar threads
-
Broker requiring minimum margin for covered call
- Started by lonstud
- Replies: 0
-
Which broker gives margin benefit if you have full lot of shares in your demat for covered call?
- Started by curiousv
- Replies: 2
-
Do you guys know any mutual fund that writes covered calls for stock holding.
- Started by IDHAR
- Replies: 0
-
-