Comment on Taxation Simplified

sharan commented on 09 Jun 2013, 02:46 PM

Dear Sir,

I read the latest update regarding section 44AD. I am an engineer and have no accounting knowledge. I would like to know what are all included in the “books of accounts”. As per your post I understand books of accounts include contract notes, bank statements and DP statements.
Are only these 3 things enough (I assume these are electronically generated and I can get this through back office). Also could you specify more precisely what all DP statements are required (is it only PL statement and ledger or are any other statements required).
Could you kindly LIST ALL the things (SPECIFICALLY) included in maintaining “books of accounts”.

Also as per 44D calculating turnover has basically become mandatory for everyone. So with respect to turnover calculation, do I have to painstakingly calculate (by hand) the gross profits and gross losses?
If that is the case it is a nightmare because I may have averaged or added to positions and exited them in 2 or 3 parts and traded the same share many times a day… but the average price and quantity of buy and sell for the day are only given (which does not constitute turnover).
So how do I go about calculating my turnover in such daytrading of a single share?

Thanks for this support on taxation. This article and thread is the best resource available online for taxation on trading yet!

Sharan.

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