How to Prepare Trading & Profit & Loss Account for F &O Trading in Case of Tax Audit Futures and options (Non-speculative transactions) In Normal scenario, turnover for Futures & Options is determined as follows – The total of favorable and unfavorable differences shall be taken as turnover Premium received on sale of options is also to be included in turnover In respect of any reverse trades entered, the difference thereon should also form part of the turnover. For understanding the above Turnover is taken as “Calculated Turnover”. My question is when an assessee opts for Tax Audit in F & O Trading; Turnover to be credited in Trading & Profit & Loss Account shall be Normal Turnover or Calculated Turnover. If we have to go for Option (1), Normal Turnover shall be credited in the Trading & Profit & Loss Account and normal Purchase value along with all the expenses such as Securities Transaction Tax, Stamp Duty, Brokerage, Exchange Transaction Charges, GST, SEBI Turnover Fees etc. shall be debited in the Trading & Profit & Loss Account , the balance being the Net profit/Loss. But if we have to go for Option (2), Calculated Turnover shall be credited in the Trading & Profit & Loss Account. But how to account for the difference in Turnover (Normal Turnover Vs Calculated Turnover) .   Suppose Normal Turnover (Sell value) in case of F&O Trading is Rs. 250.00 Lacs and Calculated Turnover comes at Rs. 50.00 Lacs   Now, since we have to credit Rs. 50.00 Lacs in the Trading & P & L A/c (Calculated Turnover), How to adjust the difference of Rs. 200 Lacs (250 – 50)?   Shall the difference be adjusted with the normal purchase value?   Whether all the expenses such as Securities Transaction Tax, Stamp Duty, Brokerage, Exchange Transaction Charges, GST, SEBI Turnover Fees etc. shall be debited in the Trading & Profit & Loss Account?

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FORM 3 ISSUED. HAVING BALANCE IN PD ACCOUNT WITH THE INCOME TAX DEPARTMENT DUE TO CASH SEIZED AND ASSESSMENT MADE. CAN I PAY FROM PD ACCOUNT UNDER DTVSVS.

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Facts Demand raised against the assessee after assessment u/s 143(3) First appeal preferred and order in favour of assessee. Amount refunded by department as no addition sustained for refund as well as demand paid along with interest u/s 244A. appeal preferred by the department against order of CIT appeal before Honourable ITAT Meanwhile assessee settled the dispute under VSVS by paying 50% Now revised form 3 received seeking to recover 244A interest already granted to assessee on earlier interest paid and also seeking to collect 234D interest @ 0.5% from date of refund to date of payment under VSVS. Question Whether department can recover 244A already granted and can also collect 234D on refund. I am aware of Bombay High Court judgement on similar issue in case of Cooperative Robobank U A. However the judgement leaves open 234D and 244(3).

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my son who is canadian PR holder has gifted a sum of Rs. 5 Lac in FY2020-21 to me. how can i show this in ITR & claim the exemption?

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Assessee is partnership firm engaged in the business of construction and development of housing project. Assessee firm has filed the Return of Income for AY 2018-19, 2019-20 and 2020-21. While filling the Return of Income as per advice of CA, added back the difference in stamp duty valuation and actual consideration u/sec 43CA of the Act.  While making this disallowance, assessee firm has added the difference even though the same is less than 10%. Since the disallowance was huge, assessee firm has uploaded the Return with out making payment of self assessment tax. All the returns are processed u/143(1A) of the Act and demands are raised. Whether assessee firm can file petition  u/sec. 264 of the Act for all the 3 years. ? Whether there is any other remedy ? Pl guide.  

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If assessee get redeveloped flat today against his old flat and same is sold after 2 years , the cost of acquisition would be stamp duty value as on today?

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MY CLIENT IS REGISTERED UNDER THE COMPOSITION SCHEME AND SELLING GOODS HAVING A TOTAL TURNOVER OF RS. 18 LAC IN THE CURRENT FINANCIAL YEAR AND PAYING TAX AT THE OF 1%. I HAVE PROVIDED SERVICES OF RS. 100000.00 WHAT RATE OF TAX WILL BE APPLICABLE AND UNDER SUCH SECTION AND NOTIFICATION PLEASE REPLY.

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Sir, Thanks for providing us the updated judgements. Whether these are now not updated, as after April’2021 we are not able to see any update in judgements. Please confirm & clarify

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When Mr A wants to sell a ownership flat received free by him on surrender of tenanted flat at the time of redevelopment  . What is its cost and what is period of holding ?  

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1.Penalty  of Rs.5,00,000 u/s 271(1)(c) was deleted by CIT appeal on the ground that penalty order passed by A.O. was passed after six months u/s 275(1)(a) . 2.The revenue is in appeal before ITAT on the ground that i) The penalty order was received late by CIT ii) The case is covered under exception to small tax effect circular of CBDT para 10(a) iii) Appeal admitted by the High court in quantum case is not relevant since withdrawal application has been filed by the assessee as per Vivad  se Vishwas scheme. 3. On behalf of the assessee it was submitted before ITAT i) no evidence by the revenue that the order was received late  by the CIT was submitted ii) Order of CIT appeal interpreting the provision of section 275 does not amount to interpretation of constitutional validity and therefore is not covered in para 10(a)  of CBDT circular. iii)Since substantial question of law in quantum case was framed by the high court application for withdrawal of appeal in view of Vivad se Vishwas scheme application does not alter the legal position on framing of substantial question of law that additions in quantum case are disputed. Case before the ITAT is fixed in next week . Your valuable guidance will be highly appreciated.

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