Comment on Notice under Section 139(9)? - Possible reason

Nithin Kamath commented on 02 Sep 2013, 05:39 AM

Hi Kumar,

There is no clarity on this and ideally what we need to follow is a path which is as close to being compliant. Income tax department even doesn’t have guidelines on how to calculate turnover and ICAI is probably the closest.

Yes stock trading is not a traditional business and shouldn’t not be treated as one, but we have to go by what IT department says. A lot of notices have been received and probably will only go up in the future and the best way to avoid is to have the books audited if you make profit less than 8% of turnover or if turnover above Rs1cr.


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