Comment on Taxation Simplified

commonman commented on 20 Dec 2013, 09:35 PM

Nithin , I think you are making a big mistake – For those who are in the business of futures and options and are declaring profits(or losses ) less than 8% of turnover(as defined ie absolutes of profits + absolutes of losses) you have been mentioning that they too need to get their accounts audited even if their turnover is below the 44AB limit of 1 Crores.But I urge you to please see the guidance note issued by the CA institute on 44AB page 30 which mentions that this will not apply to a person carrying on profession as referred to in sub-section (1) of section 44AA;Now if you see this 44AA(page 33) you will find “(vi) Stock and share broking and dealing in shares and securities – CIT v.Lallubhai Nagardas & Sons [1993] 204 ITR 93 (Bom)” . I suggest you please clarify this so that those who are below 1 Crs to limit but whose profits are <8% need not get their accounts audited at all (not just tax audit but no need of any audit ) .

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