I trade in BTST. What is best way of assessing taxation.
Should I go for business income and get my account audited by CA or should I simply pay short term gain tax on my realized income.
Because my turnover is 25 lac and realized profit is just 50000/- . Because my profit is below 8%, If I opt for business income then my account has to be audited by the CA.
regards
Shiva
BTST income has to be normally considered as Short term capital gain unless you trade on them frequently. But if its in the very normal course, then you cannot treat it as Short term capital gain, but to be treated as business income and get your books audited.
Like Roopa has said, since you would be selling shares without taking delivery, it will be considered as speculative and hence you will have to declare this as a business income. If Rs 50,000 is your total income (no other income you have), you will not need an audit as you don't fall under the tax slabs.
One of the ways to avoid an audit (if your turnover is less than 1crore and if your income is over Rs 2lks) would be to declare presumptive income of 8% of the turnover and pay taxes accordingly without an audit, under section 44 AB. Check these posts.