TMI BlogApplicability of Tax AuditX X X X Extracts X X X X X X X X Extracts X X X X ..... A person is a salaried professional having taxable salary of Rs.15,00,000/-. He also deals in shares, whereby his Capital gain is Rs.7,00,000/-(S.T.C.G.) Speculation Profit is 5,00,000/. His cost/Sale Price of total shares purchased/sold during the year exceeds 40,00,000/-( say SP-42 lacs cost 30 lacs plus cost of shares in stock worth Rs.4 lacs purchased during the year). Is provisions of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 44AB , Tax Audit applicable? If yes, under which criteria he is covered for Tax Audit? kindly advise. - Reply By Markesh Antony - The Reply = There can not be two things at once. On the one side, you are stating that income from sale and purchase of shares is short term capital gain on the other side you discuss about section 44AB . Section 44AB is applicable on for business turnover. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Once the sale and purchase activity is falling within the category of capital gains, the monetary limit of tax audit u/s 44AB can not apply. Now, therefore, you should ascertain the nature of your activity. Indeed, it is true that determination of correct category may be difficult. But given certain principles by the CBDT or case laws, you may determine the same and decide accordingly. - Applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability of Tax Audit - Query Started By: - HARSHA JOSHI Dated:- 12-5-2009 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
