Traders - Compliances under Revised 44AD

#11
How is it even possible to declare less turnover when everything is tied to PAN at the broker/NSE?
Sir , the CA of my friends have shown less turnover & shown 8% profit on it & filed the return . It has happened because my friends & myself don't know about Taxation regarding markets .

I think many CA's do these kind of things to avoid audit.

Let's wait for Nikhil sir to clarify the implications & do share if you know something about it .

Thanks
 
#12
Nikhil sir , waiting for your reply on above 2 posts.

Thanks
 
#13
I do not understand, when one has legal ways to avoid audit in case of loss or profit less than 8%, (by keeping total gross income within/below taxable limit) then why resorting for illegal means, that may have severe implications.
 
#14
I do not understand, when one has legal ways to avoid audit in case of loss or profit less than 8%, (by keeping total gross income within/below taxable limit) then why resorting for illegal means, that may have severe implications.
How can one keep gross income less than 2.5 Lakhs per annum....they don't consider deductions here.That means earn less than 20 K per month ?It is better to earn more and pay Rs 10 K for audit and get it done .

Smart_trade
 

aja

Well-Known Member
#15
I do not understand, when one has legal ways to avoid audit in case of loss or profit less than 8%, (by keeping total gross income within/below taxable limit) then why resorting for illegal means, that may have severe implications.
I had the similar doubt.
Small traders ke liye yeh ek Vardaan hai samzo.Har baar loss ho raha hai upar se CA ko 15-20k do,yeh bohot painful hota hai.Agar profit hai to bhai khushi-khusi 20k de dega naa.
 
#16
How can one keep gross income less than 2.5 Lakhs per annum....they don't consider deductions here.That means earn less than 20 K per month ?It is better to earn more and pay Rs 10 K for audit and get it done .

Smart_trade
Sirji

This is for those, whose are not even earning anything, from trading and loosing their capital (loss makers) or earning less profit, less than 8%

ek karela duje neem charha

on one side they are loosing capital or earning meager profit and above it they have to spend hefty sum on audit fees,

and paying that too, to those (many of them, not pointing to learned ones) who do not know auditing for FnO accounts

However, this plan may not be applicable/suitable for every one.
 
#17
I do not understand, when one has legal ways to avoid audit in case of loss or profit less than 8%, (by keeping total gross income within/below taxable limit) then why resorting for illegal means, that may have severe implications.
Sir , the small retail trader don't know anything about Taxation leave apart audit etc . When the situation is as such & CA does wrong things , what can the retail trader do?
This is the situation with some of my friends, so asking the guidance of Nikhil sir as the filing has already been done .

Thanks
 
#18
Sir , the small retail trader don't know anything about Taxation leave apart audit etc . When the situation is as such & CA does wrong things , what can the retail trader do?
This is the situation with some of my friends, so asking the guidance of Nikhil sir as the filing has already been done .

Thanks
My dear friend,
not knowing about a law, that is
ignorance is no excuse, anywhere.

I myself has faced such a situation, when I entered in business field (not fno trading), with no commerce background, long time back. In the time, when there was no internet, bought taxman books and tried to understand atleast basics. These days many websites on tax are providing all sort of knowledge, basic to very advanced. So only for knowledge purpose, spend some time there and gain some knowledge. It will be very helpful, not only for now but future course of time also.

You will understand a CA advice in a better way, only and only if you know atleast basics, or better some thing advanced as well. Otherwise everyone from your accountant to taxman (if anyone of them has bad intentions), will try to suck you.

BTW, in your case I am still unable to understand how a CA will reduce turnover, so as to avoid audit. BUT, if you meant that your CA deliberately tinkering with the numbers and posting lower turnover in ITR, instead of actuals, then it is a very serious issue and may prove costly.
 
#19
Sir , he lowered the actual turnover & paid 8% tax on it as my friend is having loss . The most important thing here is that there is no evasion of income tax but only to avoid tax audit , he lowered the turnover .

So what may be the implications ?

Thanks
 

Subhadip

Well-Known Member
#20
Sir , he lowered the actual turnover & paid 8% tax on it as my friend is having loss . The most important thing here is that there is no evasion of income tax but only to avoid tax audit , he lowered the turnover .

So what may be the implications ?

Thanks
if they find out with no audit, fine of 1.5 Lakh....that is all as far as i know..
 

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