Any member of Mudraa may please clarify my doubt.
As per Sec 44AB of IT Act, any person engaged in any profession say in our case it is share business,
if his turnover exceeds Rs 1 crore, he has to get his accounts audited.
Turnover is defined as under:-
(1) If share business done on delivery basis, we have to include both profits and losses. Whereever
gains are there, we have to include sales pertaining to that gain also.
(2) For intraday trading, all losses and gains should be taken into account.
(3) For FNO trading, in respect of Futures, all losses and gains should be added to turnover.
However in respect of Options, all gains, losses and also all premiums received on option sales
should be added to turnover.
If turnover as above is less than Rs 1 crore and total income like salary, business income as above
is less than Rs 2.5 lakhs ( Rs 3 lakhs for senior citizens ), no audit is required.
My question is if Turnover in share business is less than Rs 1 crore, but taking into account others
like salary, interest on Bank Deposits etc if total income exceeds Tax exemption limit viz Rs 2.5 lakhs
( Rs 3 lakhs for senior citizens ) will I require Tax audit to be done?