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if my clients delivery sales is about 12lakh
and my derivative profit is 40 lakh
and my derivati loss is 20 lakh
so does my client comes under???????????????????
i.e whether i shall take my gross recipt as 52 lakh(12+40)
or i shall consider gross recipt as 32 lakh (12+40-20) .
please reply..........

From India , Mumbai
Hi Ankit.
I didnt understand ur question. However, I believe u wanna know whether tax audit is applicable to u. Right?
Friend, my advice will be that if ur client is a share broker then take the total turnover and if it exceeds the said limit then tax audit will be applicable. However, if he is a investor then there r two options -
Option 1 - He is a trader in that case the income will fall under the head Income From Business & Profession.
Option 2 - He is a investor. The Capital Gains will be applicable and thus Tax audit is not applicable.
Last thing I would like to say is that, volume or quantum of operation is not the criteria for determining whether he is a investor or trader in share.
Warm Regards.
Vikas Goel

From India , Mumbai
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