If a housewife can do it,then how much profit she exempted ?.
There is no change except a benefit of tax rate. The total income of a woman below the age of 65 years exempt from tax is Rs 1,35,000 whereas in case of male below 65 years, is Rs 1,00,000
Whether it clubs to short or long term capital gain/loss ?
Derivative trading is business income now , so its treatment for computing total income is same as that of any other business.Capital gains are added for tax rate purpose.
If derivatives turnover is 700 lakhs per year then is the audit necessary ?
Previously , speculative transactions were not forming part of total Turnover for the purpose of section 44AB which makes it mandatory for tax audit.This issue had come up in case of Babulal Enterprise vs ACIT before Mumbai bench of ITAT [1999-2000] wherein it was held wher the actual delivery was not taken and difference in price was settled on the basis of contract note,the turn over can not include those transactions. Another decision of Mumbai Tribunal expressing similar views was in case of Growmore Exports Ltd vs ACIT [78ITD 95] .
However, in my view, its better , in view of the amendment in Section 43(5) of the I T Act by which derivative trading has been made Business Income, You should get your accounts audited, It will not only make your accounts clear of any doubt and discrepancies, controversy shall also not arise thus lead to less problems.
What are various the penalties for e.g if A.O found 1000 rs. discrepancy in set off ?.
If you mean penalty u/s 271(1)(c) for concealment, formula prescribed in 100 % to 300 % of the Tax Evaded . Thus , if A.O found Rs 1000 of discrepancies , and you come with 30 % tax bracket , then approximately @100 % Rs 300 will be penalty. But most important thing about penalty ,you must know are :
1. Not every discrepancies found by A.O can bring penal provision in action.
The discrepancies which are routine or technical errors can not make you liable to penalty u/s 271(1)(c) .
2. The A.o can not impose penalty without giving you an opportunity of being heard.
