Source of income

Sir, I have two questions: 1) If a salaried person does intra-day trading in stock market on mostly daily basis then in return of tax under which head the income will have to be shown?

2) In case of intra-day trading, how will the limit for deciding whether tax audit applies or not be decided: on the basis of turnover of the daily transactions or the profit portion only? Turnover can easily cross the limit of Rs. 60 lakhs currently for tax audit in intra day transactions.

Awaiting your reply.

asked Mar 29 '11 at 14:17 by Priya 111

It will be treated as specualtion business income and tax as your other business income. ITR-4 will have to filled in that case.

In case gross receipts from business exceed 15 lakh in a particular year, tax audit is required.

answered Mar 29 '11 at 14:47 by Pankaj Batra 5.2k320


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Asked: Mar 29 '11 at 14:17

Seen: 1,653 times

Last updated: Mar 29 '11 at 14:47