Traders - Compliances under Revised 44AD

[travi]

I have 2 CA's.
CA 1-Always say-Bhai,you are a trader,loss ho-profit ho,audit kar liya karo.Yeh 8%,10% yeh-voh ispe dhaan na do.Audit se aap ka hi fayda hai.

CA 2-Turnover 1Cr ke niche hai,8% declare kar dete hai,audit jaruri nahi hai.

Now,ps tell me,maine kya karna chahiye?
CA 2 1000-1500rs me nipat jaata hai. :rofl:

But which way is right? This is a grey area which varies from CA to CA.

bhai CA2 ki tho....
1000-1500 mein niptega uski fees...
woh excess 8% laane ke liye tax kaun bharega, uska baap ?

 

[princy01]

Audit or no audit, can we file returns immidiately after 31st March?

I have lots of tax to pay, paid some advance tax, but it will not be sufficient, so I want to file returns immidiately to avoid interest

 

[princy01]

I have 2 CA's.
CA 1-Always say-Bhai,you are a trader,loss ho-profit ho,audit kar liya karo.Yeh 8%,10% yeh-voh ispe dhaan na do.Audit se aap ka hi fayda hai.

CA 2-Turnover 1Cr ke niche hai,8% declare kar dete hai,audit jaruri nahi hai.

Now,ps tell me,maine kya karna chahiye?
CA 2 1000-1500rs me nipat jaata hai. :rofl:

But which way is right? This is a grey area which varies from CA to CA.

1 crore turnover and 8% tax is 8 lacs, why do u care for now?

 

[travi]

1 crore turnover and 8% tax is 8 lacs, why do u care for now?

its not 8% tax, its 8% of TO.
On that all IT slabs, deductions etc apply
no system is foolish to demand 8% tax on TO

 

[traderniftybull]

I have 2 CA's.
CA 1-Always say-Bhai,you are a trader,loss ho-profit ho,audit kar liya karo.Yeh 8%,10% yeh-voh ispe dhaan na do.Audit se aap ka hi fayda hai.

CA 2-Turnover 1Cr ke niche hai,8% declare kar dete hai,audit jaruri nahi hai.

Now,ps tell me,maine kya karna chahiye?
CA 2 1000-1500rs me nipat jaata hai. :rofl:

But which way is right? This is a grey area which varies from CA to CA.

IMO
Both of them are correct to some extent, but not fully.

CA 1 - Its good to get accounts audited, loss ho-profit ho. But who will pay the audit fees. If he is ready to charge normal fees, then its good.
CA 2 - Suggestion of declaring 8% profit of total TO is good so as to avoid all problems, but who will pay the tax. If the difference is marginal after all calculations of deductions etc, then second option is good.
---------------------------------

But

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.

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.

 

[wisp]

Dear CANikhil,
What documents need to be provided to the auditor as far as F&O is concerned. Would the Tradewise Turnover statement and P&L statement from the broker be enough?

Thanks for your help.

 

[travi]

Dear CANikhil,
What documents need to be provided to the auditor as far as F&O is concerned. Would the Tradewise Turnover statement and P&L statement from the broker be enough?

Thanks for your help.

He has quoted this in last para of first post

Books of Accounts should include:

1. Documentation including contract notes, margin statements etc

2. Ledger including margin accounts, accounting representation of buy and sell transactions, bank statement, other accounts as may be applicable to specific cases like loan account, interest paid, etc

3. Profit & Loss Account, Balancesheet, Trail Balance.

Basically all documentation regarding sources of income and all docs pertaining to expenses.
If you are claiming internet bill under expenses, be sure to have bill receipts.

Generally, CA will get acquainted over time, so no need to carry separate bill printout as you have e-statement and pay by ECS through your linked bank a/c etc. Infact in last 2 filings, never printed a single doc.
They've moved to google/dropbox file share

 

[wisp]

He has quoted this in last para of first post

Basically all documentation regarding sources of income and all docs pertaining to expenses.
If you are claiming internet bill under expenses, be sure to have bill receipts.

Generally, CA will get acquainted over time, so no need to carry separate bill printout as you have e-statement and pay by ECS through your linked bank a/c etc. Infact in last 2 filings, never printed a single doc.
They've moved to google/dropbox file share

I have been paying income tax on other income, but FNO audit this is my first. So want to know what needs to be given to the CA for FNO audit. If it is contract notes then, there will be one for every day! Do all these have to be printed out and given, unfortunately, my CA is not familiar with FNO, so this will be first time for him as well!

 

[traderniftybull]

I have been paying income tax on other income, but FNO audit this is my first. So want to know what needs to be given to the CA for FNO audit. If it is contract notes then, there will be one for every day! Do all these have to be printed out and given, unfortunately, my CA is not familiar with FNO, so this will be first time for him as well!

IMO
You should go with a CA, who is familiar with F&O audit, and not a newbie.

 

[travi]

I have been paying income tax on other income, but FNO audit this is my first. So want to know what needs to be given to the CA for FNO audit. If it is contract notes then, there will be one for every day! Do all these have to be printed out and given, unfortunately, my CA is not familiar with FNO, so this will be first time for him as well!

If you are getting a tax pnl from your broker I don't think your CA (or any) should have a problem.