By Nithin Kamath Anyone who actively invests in the stock market has to file income tax returns showing trading as a business income using the ITR-3 form. What this means is that even a small retail investor trading completely digitally is now subject to all the requirements of a full-fledged business while filing income tax returns. This also means that a small trader has to comply with tax audit requirements — maintain books of accounts, get a chartered accountant to audit, etc. — of a mid-sized business. CALCULATING TURNOVER WHEN TRADING When trading and investing, the Institute of Chartered Accountants of India guidelines say that turnover is the sell value of equity delivery trades and the absolute sum of P&L for all other types of trades. As you would imagine, this turnover can rack up quite fast for someone who is actively trading the markets. Currently, the audit requirement is mandatory when turnover is over Rs 2 crore (increased to Rs 5 crore in Budget 2020). While this increase from next year will help avoid an unnecessary audit for some traders, almost all active traders will reach this Rs 5 crore number quite easily. Hence, almost all of them are… Read full this story
- Amazon to escape UK digital services tax that will hit smaller traders
- The Hill's 12:30 Report - Sponsored by The Air Line Pilots Association -Trump enters debate week after NYT obtains his tax returns
- Donald Trump Took Advantage of Barack Obama-Era Laws to Avoid Paying Taxes
- Blow to business but Covid curbs needed, say traders as Punjab extends night curfew from today
- Masan marching towards building a leading consumer-retail platform
- 'Small traders lost Rs 4-5 lakh crores in lockdown'
- Deloitte weighs sale of restructuring arm as audit conflicts bite
- Braving the challenges of foreign private equity investment in Nigeria
- Opponents of S.F. real estate tax measure raise over $2 million. Here’s why
- Footfall on UK's High Streets drops by 3% in a week with visitor numbers down by 41.3% as local lockdown restrictions deal new hammer blow to recovering retailers
Draconian tax audit and retail equity traders have 329 words, post on economictimes.indiatimes.com at March 3, 2020. This is cached page on Technology Breaking News. If you want remove this page, please contact us.