Tax Audit u/s 44AB is require if the Assessee has done Intraday-(Speculative) transaction

[Haresh Raithatha]

Dear Freinds

One of my client (who is an Employment in MNC) has carried out Share market transaction and his turn over intra day for the Finacial year 13-14 in equity market Was ₹ 15.50 crore and Net result of the Transaction is ₹ 1.50 lac Profit. Is he liable to get his account audited u/s 44AB...Assessing officee is insisting to impose penalty U/S 271 B...

Please advise and give some relevant case laws....

Regards

Haresh

[Ganeshan Kalyani]

Sir, provison states Business or Professional turnover as a condition for getting audit done. Whether speculation in shares amounts to business or Professional ?

AI Summary

Tax audit applicability for intraday speculative trading hinges on whether such transactions constitute business turnover. Whether intraday (speculative) equity transactions attract the statutory tax audit depends on whether such dealings are characterised as business or professional activity; if characterised as business, gross turnover from those transactions counts toward the audit-turnover threshold, potentially triggering an audit and attendant penalty proceedings initiated by the assessing officer.