Audit u/s 44AB of the I. T. Act

[Kishor Deshpande]

One of my client is dealing in shares. However, he is doing his share transactions on delivery basis, intraday basis and f&O basis. So, for the sack of consideration of turnover for the purpose of audit u/s 44AB  of the IT Act, how the turnover is considered for all the above mentioned three types of transactions.

AI Summary

Turnover under section 44AB: delivery by gross sales, intraday as speculative net sales, F&O by net gains.
Computation of turnover for audit under section 44AB distinguishes transaction types: delivery-based transactions use aggregate sale and purchase consideration and are typically capital gains (subject to being treated as business if turnover is high); intraday trades are speculative with turnover as net sales; F&O/non-delivery transactions use the net total of all gains and losses as turnover.