Audit Income Tax
February 27th, 2009
Question: U/s 44ab of the Income tax act, do the day traders of shares have to get audit for turnover above 40 lakhs?
There is an article, link http://www.moneycontrol.com/india/news/tax/declare-investments-nowsave-tax-later/03/15/289586 which says it is not necessary, but my CA says I need to audit.
Answer: if u are dealing in shares, buying them, keep for some time and then sell them audit is not required. but if u buy and sell the same day without taking delivery and ur trun over exceeds 40 lakhs and u make a profit audit is required.
In futures and options segment, as there is no delivery of physical shars, an audit is neccessary.
but in both case only when u make profit. .
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