Comment on Notice under Section 139(9)? - Possible reason
commented on
06 Jul 2014, 01:30 AM
Thanks Nitin. Kindly provide few more clarifications. I would be consulting a CA also but I want to have my basic understandings right.
1) From the discussions above I understand that trading turnover is sum of abstract value of profit and losses. Since I traded frequently my turnover would be about Rs. 25 lakhs while I made a net loss of Rs. 2.5 lakhs. Please clarify whether deduction of business expenses is allowed from the turnover or net profit/loss. Considering a business expense of Rs 2 lakhs my taxable income would be Rs 23 lakhs ( this would be sort of imaginary income) in first case and (-) 4.5 lakhs in second case (meaning zero tax)
2) In Jan 14 my wife transferred shares worth Rs. 4 lakhs from her demat account to mine. Will it be taxable.
3) A layman’s question in the end : Is tax audit and book audit ( as required as per sec 44 AD) same for share trading business.
Regards
Pranay