Good Cas who can file properly

[aja]

If we do F&O,we are likely to attract audit anyhow(specially option trading) and many CA's are not skilled in filing traders return because our trader community fall in rare of rarest.We are minority
They dont see us,many of us even dont need a return.My CA once commented on me,bhai isse paise bante bhi hai kya?Hamare idhar aajtak koi share market ka return file karne hi nahi aaya.
Now you can get the picture.

Ok,my question on Equity is,If my profit is 4L and Loss is 1.5L then turnover will be 5.5L
8% of this 5.5L is just 44,000.
Ab actual profit 44k ke upar hona to audit nahi lagega.Ab maan lo mai trading se 100% loss me hu,lekin mera FD interest hi 1L hai jo iss 44k se jyada hai,mane mai audit nahi karega.???

Equity se turnover badhta hi nahi hai.Maan lo turnover 15L hai,uska 8% hoga 1.2L,ab 1.2L se jyada profit badi nahi hogi.(FD interest+small Equity profit).

Fir yeh Equity me audit kab karna hota hai,pls batao bhai.

 

[lemondew]

Check this thread for audit required or not required. Answering tho not asked me
http://www.traderji.com/taxation-matters/98969-you-covered-under-tax-audit.html

If we do F&O,we are likely to attract audit anyhow(specially option trading) and many CA's are not skilled in filing traders return because our trader community fall in rare of rarest.We are minority
They dont see us,many of us even dont need a return.My CA once commented on me,bhai isse paise bante bhi hai kya?Hamare idhar aajtak koi share market ka return file karne hi nahi aaya.
Now you can get the picture.

Ok,my question on Equity is,If my profit is 4L and Loss is 1.5L then turnover will be 5.5L
8% of this 5.5L is just 44,000.
Ab actual profit 44k ke upar hona to audit nahi lagega.Ab maan lo mai trading se 100% loss me hu,lekin mera FD interest hi 1L hai jo iss 44k se jyada hai,mane mai audit nahi karega.???

Equity se turnover badhta hi nahi hai.Maan lo turnover 15L hai,uska 8% hoga 1.2L,ab 1.2L se jyada profit badi nahi hogi.(FD interest+small Equity profit).

Fir yeh Equity me audit kab karna hota hai,pls batao bhai.

 

[aja]

lemon bhai,my logic above is if someone doing Equity Trading then he'll never need to do an audit.

 

[aja]

maan lo kisi ka Equity se turnover 60L hai.
60L ka 8% hoga 4.8L

Ab bhai jiska Equity se 60L turnover hai aur profit 8% ke niche hai,aisa ho hi nahi sakta.
60L turnover banane tak banda bohot kuchh sikh gaya.He survived a game.
Uski FD's bhi hogi aur kam se kam 2-3L profit bhi kama liya hoga.Kyu ki Equity trading se 60L turnover tak jana majak nahi hai.

Option trading me selling premium add hota hai isliye turnover badhta hai.
Equity me aisa nahi hai.Isliye Equity trader ko kabhi audit karna hi nahi padega.

 

[lemondew]

equity trading turnover is available at Zerodha q - TAx p-l. Baki ur questions are answered in the first post of nikhil thread .

lemon bhai,my logic above is if someone doing Equity Trading then he'll never need to do an audit.

 

[aja]

equity trading turnover is available at Zerodha q - TAx p-l. Baki ur questions are answered in the first post of nikhil thread .

Thats a nice thread by Nikhil Bhai.But first page itself is confusing.
Why?
Because he quoted 44AD limit there(which was 1 Cr),but did not cover the trading turnover of an individual with example.

Case 2

Turnover: below Rs 1 cr
Gains: Rs 50000 (assumed)
Salary: Rs 250000

Audit required as condition of income exceeding maximum exemption limit and profit less than 8% fulfilled

Here he quoted 44AD limit only and on that basis he said Audit is required.

The fact is-
Case 2
Turnover is Below 1 Cr
Gains: Rs 50000 (assumed)
Salary: Rs 250000
Total=Rs 300000

may be someones trading turnover is just 5L(assumed)
8% of 3L=40000.

So,Audit not required at all.

He demonstrated 8% of 1Cr only,that is why that thread has repeated queries with lot of confusion.He ignored trading turnover of individual.

 

[canikhil]

Thats a nice thread by Nikhil Bhai.But first page itself is confusing.
Why?
Because he quoted 44AD limit there(which was 1 Cr),but did not cover the trading turnover of an individual with example.



Here he quoted 44AD limit only and on that basis he said Audit is required.

The fact is-
Case 2
Turnover is Below 1 Cr
Gains: Rs 50000 (assumed)
Salary: Rs 250000
Total=Rs 300000

may be someones trading turnover is just 5L(assumed)
8% of 3L=40000.

So,Audit not required at all.

He demonstrated 8% of 1Cr only,that is why that thread has repeated queries with lot of confusion.He ignored trading turnover of individual.

Dear Aja,

Yes. there is an error in the example to the extent that I should have also mentioned that I am assuming turnover large enough to make actual profit less than 8% of the turnover.

 

[aja]

equity trading turnover is available at Zerodha q - TAx p-l. Baki ur questions are answered in the first post of nikhil thread .

no no,I'm not asking question.
My point was towards Xray Bhai that if someone is trading only Cash Market,chances are less that he'll attract audit.But option traders are likely to do audit anyhow due to addition of sell side's premium.Then why so much confusion.

 

[aja]

Dear Aja,

Yes. there is an error in the example to the extent that I should have also mentioned that I am assuming turnover large enough to make actual profit less than 8% of the turnover.

Nikhil Bhai,Please do one thing if you have time.Re-create the examples using 2Crs limit in a new thread.

 

[lemondew]

Cash only trding takes so much more STT(tax) so you are paying more on every transaction. Turnover wd be larger if you hold for few days(entire sell side). Not every1 does intraday. better to avoid cash if theres volumes and one is doing swing.

if you do intraday futures too turnover will be less...
Are you talking about investors then in that case audit is unlikely....

no no,I'm not asking question.
My point was towards Xray Bhai that if someone is trading only Cash Market,chances are less that he'll attract audit.But option traders are likely to do audit anyhow due to addition of sell side's premium.Then why so much confusion.