Comment on Classifying Your Market Activity

Nithin Kamath commented on 23 Jun 2016, 08:08 AM

Use ITR4, yeah you will need an audit because you have intraday trading where your profit is less than 8% of the turnover. Alternatively, if your intraday trading is very less, instead of showing a loss, declare a profit of 8% of the turnover and get away from need of an audit. So if your intraday turnover is Rs 1lk, show 8% as profit, which Rs 8000. The tax slab you are in, you will need to pay 20% of this as tax, or Rs 1600. This will be cheaper than going for an audit which might cost anywhere between 5k to 15k.
Ideal way would be to get an audit done.

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