Question ID :
40825
Tax Audit for Multiple Businesses
I have an assessee who is carrying on 2 businesses
1. Photo Development Service - T.O (12 lakhs)
2. Commodity Trading (Futures Intraday, delivery is not there, squared off daily) - T.O (56 Crores)
For 2nd business, he incurred 3 lakhs loss and intend to carry forward this speculative loss, hence tax audit is applicable here - Even sum of absolute figures (Profit/loss) per transaction also more than 1 crore, tax audit is inevitable
In this case, how to proceed for tax audit. Is it possible to disclose speculative loss and avail presumptive taxation scheme for 1st business or both turnovers needs to be aggregated?
For 2nd business what is the Turnover to be disclosed in ITR - Full sale - 56 crore, sum of absolute figures - 2 Crore?
Plesae guide me in both tax audit and filling of information in ITR perspective also.
Need experts help in proceeding further. Thanks in advance.
Posted by
UDAY KIRAN
on
Sep 11, 2020
Filed Under
AUDIT
1. You can file presumptive taxation for Photo Devlopment Service and do a tax audit to claim the speculative loss.
2. The turnover for the purpose of Income tax act would be only the commission income (sum of absolute figures Rs.2 Crores) and not the full sale Rs.56 Crores as per Guidance note issued by ICAI.
For Practical example refer https://cleartax.in/s/fo-trader-return-filing
Posted by
Ananthanarayanan on
Sep 16, 2020