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Tax Audit of Shares

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  • VISAWADIA.YATIN@MAHINDRA.COM
    Dears As per the Guidance Note for Tax Audit from ICAI, daily trading known as speculative transaction are subject tax audit. However, as per that guidance
    Message 1 of 1 , Sep 1, 2009
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      Dears
       
      As per the Guidance Note for Tax Audit from ICAI, daily trading known as speculative transaction are subject tax audit. However, as per that guidance note, only the net impact(either loss or profit) should be taken for calculating Rs 40 lakhs. (here more clairity is needed as the guidance note say that the aggregate of the net result has to be seen). In my opinion, the aggregate means, considering the object of of Sec 44AB, the absolute value of both loss and profit should be added. Say Profit of Rs 15000 and Loss of Rs 20000/- results ultimately to net loss of Rs 5000/- as speculate loss. But, for turnover purpose, My humble opinion is to take as Rs 35000/- as turnvoer.
       
      Elite members may kindly comment on the above intrepretation please.
      .
       
      One more thing, guidance note is not mandatory in nature. Hence, Act only prevails, In income tax act, there is no definition for sale or turnover. If you have such confusion, better attach Tax audit report on safeside to avoid penaty....
       
       
      thanks and regards
       
      nss


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