Comment on Taxation Simplified

Abrar,

The turnover calculation comes into play only for deciding if your books need to be audited or not. Since there is no clear rule on how to calculate turnover, my advise would be to keep your books and have it audited to avoid getting blanket notices that IT department has started sending from this year, especially if you are an active trader.

Yes you can keep your long term buys in a separate ledger and not consider that for turnover calculations for your active trading portfolio. So you need to clearly demarcate between the trading and investment portfolio.

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