Fire your tax related queries and i would get it solved!!!

[Trade2Learn]

Technically speaking even 1 trade requires that you have an audit done if the profit is less then 8% of the turnover.

Don't u think this can be misused as one can say that his profit is more than 8% of turnover and file the return without audit.
Do u think the IT guys go into each and every details of every return filed by a trader where they cross check each and every trade and calculate the complete turonver and profit and loss ??

 

[Gandhar.]

Don't u think this can be misused as one can say that his profit is more than 8% of turnover and file the return without audit.
Do u think the IT guys go into each and every details of every return filed by a trader where they cross check each and every trade and calculate the complete turonver and profit and loss ??

each thing is linked to pan nos.....
u can have a software which can filter such people its too easy if all the data is in electronic format 1 click will do all the work

 

[Kabira 21]

it means suppose u did 2 trades in futures one has a profit of 3000 and the other has loss of 1000 then ur turnover is the absolute sum of profit and loss which is 4000.I m not sure if this is correct way of calculating,kindly confirm from other sources

then that way my profit+loss will never reach 1cr in a year..that means I don't need any audit,right?

 

[Trade2Learn]

then that way my profit+loss will never reach 1cr in a year..that means I don't need any audit,right?

wrong.
U need an audit if ur turnover is above 1 crore or
turnover is less than 1 crore and profit is less than 8% of the turnover.
If ur profit is more than 8% of turnover then u do not need audit.
Pls go througth the ealier posts in the thread.I have been also asking same question.

 

[Trade2Learn]

In that case file your returns without auditing.
Declare all the income honestly. Do not hide any income.
In the worst case scenario also, you may have to get your accounts audited in case you receive a notice from the department but no penalty should be levied.

Is there any clause mentioning any type of penalty if the auditing is missed and one gets a notice from the IT dept.??
If there is a penalty what is that ??I have read some where else that its 1% of the total turnover.
Pls clarify.

 

[RavishReport]

each thing is linked to pan nos.....
u can have a software which can filter such people its too easy if all the data is in electronic format 1 click will do all the work

You are 100% right. PAN no. is the key to track.

 

[shravank30]

Is there any clause mentioning any type of penalty if the auditing is missed and one gets a notice from the IT dept.??
If there is a penalty what is that ??I have read some where else that its 1% of the total turnover.
Pls clarify.

The penalty MAY be imposed under Clause 271B of the Income Tax act wich is 0.5% of the turnover or Rs 1.50 lacs, whichever is less

Section 271B confers discretionary power upon Assessing Officer to impose penalty, as the word used
in the section is 'may' .
* Besides above, section 273B provides that notwithstanding anything contained in section 271B {besides
in other penal provisions under the Act}, no penalty shall be imposed on the person or the assessee,
as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure.

 

[Trade2Learn]

The penalty MAY be imposed under Clause 271B of the Income Tax act wich is 0.5% of the turnover or Rs 1.50 lacs, whichever is less

Section 271B confers discretionary power upon Assessing Officer to impose penalty, as the word used
in the section is 'may' .
* Besides above, section 273B provides that notwithstanding anything contained in section 271B {besides
in other penal provisions under the Act}, no penalty shall be imposed on the person or the assessee,
as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure.

lol then paying penalty is much cheaper then going for an audit of 3-4 trades of turnover of less than 20000:clap:
thanks a lot for ur complete help and quick responses in this issue:thanx:

 

[kumarsemails]

My Tax query:

I want to know
1. Do I have to get audited?
2. how to calculate short, speculative, long term gains. Is there a software which can calculate and give me all the results?

My profile is something like this
I do NSE, BSE Equity cash Trading, Equity Futures (Indiainfoline), Equity Options (india infoline), Currency futures (icici direct).
My volume (stock rate * lot size) is huge Equity and Equity Futures is huge. each crossing more than 1 crore.
I am software engineer by profession. and trading i do out of interest and time pass, it is not my primary source of income.
Earning in Equity futures and currency futures in negative.
Earning in Equity Cash is like 7 lakhs.

Please tell me.

Would be very thankful.

 

[Smart_trade]

My Tax query:

I want to know
1. Do I have to get audited?
2. how to calculate short, speculative, long term gains. Is there a software which can calculate and give me all the results?

My profile is something like this
I do NSE, BSE Equity cash Trading, Equity Futures (Indiainfoline), Equity Options (india infoline), Currency futures (icici direct).
My volume (stock rate * lot size) is huge Equity and Equity Futures is huge. each crossing more than 1 crore.
I am software engineer by profession. and trading i do out of interest and time pass, it is not my primary source of income.
Earning in Equity futures and currency futures in negative.
Earning in Equity Cash is like 7 lakhs.

Please tell me.

Would be very thankful.

All the above questions are answered in this thread. Read the old posts.

Smart_trade