F&O TRADING INTRA DAY EQUITY TRADING AND INVESTMENT IN SHARES

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  1. Om Prakash Batra

    Om Prakash Batra New Member

    IF TOTAL TURNOVER DURING FY 15-16, FOR TRADING IN DELIVERY BASED TRANSCTIONS IN SHARES IS 7 LACS AND IN INTRADAY JOBBING , TURN OVER FOR GAINS AND LOSS IS 20000/- AND IN FUTURE AND OPTIONS TRADING FOR TURN OVER OF 4 LACS, LOSS IS 1.15 LACS, AND SALARY INCOME IS 5 LACS, WHETHER BOOKS OF ACCOUNTS FOR SUCH SALE PURCHASE OF SHARES AND FOR F&O TRADES IS ESSENTIAL AND WHETHER AUDIT IS ESSENTIAL BEFORE FILING RETURN IN FORM ITR-4 ( FOR CARRIING FORWARD LOSS).
    IF YES, PLEASE GUIDE UNDER WHICH SECTION AUDIT IS ESSENTIAL AS WELL AS UNDER WHICH SECTION KEEPING BOOKS OF ACCOUNTS IS MANDATRY.

    REGARDS.
     
  2. ZED

    ZED Well-Known Member

    Did you transacted such business in the preceding Financial year? If then how much was the turnover and how much was the profit? Further, whether any profit was claimed u/s 44AD [Presumptive basis]


    Delivery based transaction is a normal business transaction and not a speculative transaction.

    This is a speculative business transaction.

    This ones also a normal business transaction (not a speculative transaction)


    [regarding maintenance of books]
    S.44AA (2) (i) if his income from business or profession exceeds one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds ten lakh rupees in any one of the three years immediately preceding the previous year;

    (ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed ten lakh rupees, during such previous year;


    In any case, the loss from the speculative business can be carried forward for 4 years and can be set off against the income from the speculative business only. Therefore , you will be required to maintain books of accounts to ensure that only the loss of speculative business is being used for speculative business and not the vice versa.


    As for audit, I need to know as to whether in ANY preceding previous year, the profit were shown u/s 44AD or not?
     
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