I wanted to ask that i know if a person does shares trading of turnover of 60 lakhs in a year than tax audit on his account is compulsory.

I read a couple of years back that tax experts used to suggest to maintain different trading account for both short term trading(mainly covering buy sell within a year of purchase) and genuine selling long term or sometimes selling within a year.

In short so as to avoid business taxation (30% on profit) on genuine profit selling on non-speculative trades.

Now i wanted to ask.Suppose i open a new account with some broker.And purpose of that account is purely trading.

Now suppose within a month on daily basis i trade worth rupees 30,000 into various stocks.With strict stop loss.And booking profit on target achiveing.I suppose make 15 such tradings in a month worth of 30,000 each .So in all a gross trading of 4 lakh 50000.In a month.Around 54 lakh rupee worth of trading in a year.

Plus on top of that my trading in my another long term accounts sums too 8 lakhs.

So in all more than 60 lakh worths of shares trading in a year.

So only my trading account goes for audit or my whole account goes for audit.

I guess i got some answer.Its not the principal which counts while deciding the gross.
Its the profit or loss(removing the negative sign).To decide the turnover.

Hence in a way it sorts out the issue to much extent.

Hence i feel i got my answer.If someone have doubt now than you can ask me.