Discussion on section 44AD of IT Act

[Smart_trade]

1) "What is turnover for derivatives"---
Dept. does not define the word turnover for trading purpose. ICAI defined it in it's TAX audit guidelines issued for the benefit of members ,An ITO is not bound to accept the turnover calculation procedure as stated in guidelines similarly An Auditor may not accept any other calculation procedure except as stated in guidelines.
So first Dept should define the word TURNOVER for trading business or if they cann't should expressly accept the definition as given by ICAI.

2) " Difficult to find reliable, knowledgable and reasonable Ca"--U won't find ALL at a time , if CA is reliable, knowledgable , his/ her fees may be high.:lol:

In the abscence of clear defination of Turnover from IT department, it is best to go with ICAI defination so that the assessee does have some valid basis for calculating the turnover and need for audit.

Smart_trade

 

[mmca2006]

In the abscence of clear defination of Turnover from IT department, it is best to go with ICAI defination so that the assessee does have some valid basis for calculating the turnover and need for audit.

Smart_trade

Yes ST , I support ur view , atleast assessee can show some basis.
But in many aspect Dept. remains silent for which assessee become victim of ITO !!

 

[TradeJoker]

:lol::lol: Actually the rule is not formed for trading business , it was earlier formed for retails business , and the rule is perfect for any retail business , later on the scope of the section extended to other business and the word business created the actual problem . hope this time FM may exclude trading business from sec 44AD,

'What is margin trading' is a topic we learn in 12th level, poor IT guys :lol:

 

[pakatil]

Not this FM alone, next 25 FMs also wont change this.

Ambiguity is minimum requirement for all our Laws. How will this world survive without Litigation.

After all it is bread & Butter for Politicians, Advocates, Tax Practitioners.

Cheers

 

[Steve]

Not this FM alone, next 25 FMs also wont change this.

Ambiguity is minimum requirement for all our Laws. How will this world survive without Litigation.

After all it is bread & Butter for Politicians, Advocates, Tax Practitioners.

Cheers

You are bang on target, that's the bitter reality of our country.

 

[TradeJoker]

Its better to meet ambani bros. for the purpose,they knows how to influence govt. and change policies of govt.

 

[Mungerilal]

I was in loss this year and hardly made 15-16k profit.By the end of March expecting to make 30k profit.So,all in all,my this year profit will be 45k.

Do I need an audit ST Sir and friends?
I'm newbie fulltime trader in F&O.

 

[Mungerilal]

and how much will they charge for auditing(if it requires?)

 

[TradeJoker]

and how much will they charge for auditing(if it requires?)

Profit or loss,if turnover is above 1cr,
and if turnover is below 1cr and profit is below 8%, u need audit
Gr.profit less than 2L, no audit (if turnover is below 1cr)
and abt charges, abt Rs.18k + 2k Tax that means even if want to pay tax u have to pay extra taxes

 

[lemondew]

If 8% of your turnover < 2.5 lacs and you have no other income. Then you can show an income of 8% of turnover and pay no tax, do no audit.
Eg turnover = 10 lacs, profit = 10000
8% = 80000

My other income = 1 lac.
Total income = 1lac 80000 which is not taxable. No audit required

PS: not a CA just writing what i understand

I was in loss this year and hardly made 15-16k profit.By the end of March expecting to make 30k profit.So,all in all,my this year profit will be 45k.

Do I need an audit ST Sir and friends?
I'm newbie fulltime trader in F&O.