Comment on Taxation for Traders - Introduction
commented on
27 Jul 2013, 09:56 AM
Your answers:
1. If you are just a trader, audit shouldn’t cost more than 10 to 15k. It is actually a very simple process, take your p&l statement from the broker, your bank statements and any other loan statements. It is not tedious at all for a CA.
Yes you can show a profit o 8% on turnover and pay taxes accordingly, it is a loophole in the system,but i’d advise not to because you are not showing the data correctly.
2. Audit, is basically a CA certifying what you have filed is correct.
Last year there have been 10lk notices sent by the income tax department and this will definitely go up. The penalty is 0.5% or Rs 1.5lks whichever is lower of the turnover. It is always best to avoid any such penalty however small the amount, especially in this electronic age.
Cheers