Audit of accounts

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  1. jayanthm

    jayanthm New Member

    My wife a house wife trades in shares and commoditie.But incurrrd shortterm capital loss.She had no other income

    Should she file tax return, and should the accoumts be audited. She wishes to be treated this as investment not as business
     
  2. ZED

    ZED Well-Known Member

    I would recommend that return be filed. Otherwise there are chances of seriving her a compliance notice in which they will ask why the return has not been filed
    [You can explain that there was no income, but it would be better if return is filed because the loss can also be carried forward.]

    Further, you will have to submit the response in either way, either by filing return or by responding to the notice.

    Tax audit is not required if the turnover for the previous year 15-16 did not exceeded 1 Crore.


    Whether its a business income or a capital gain will depend upon other facts aswell and not solely by the willingness of the assessee.
    Other facts include the turnover, the frequency of trade, the period for which the investment was held, source of investment (i.e borrowed or own) , intention (to earn dividend or to earn gain by selling)
     
    jayanthm likes this.
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