What is the turnover limit beyond which a tax audit is required for stock market trading in India, effective from FY 2019-2020?

Rs. 2 Crores Rs. 5 Crores Rs. 10 Crores Rs. 20 Crores

According to the ICAI guidance note, how is turnover calculated for delivery-based transactions where stocks are held for more than one day?

Total value of purchases Total value of sales Difference between purchase and sale value Average of purchase and sale value

Which of the following is considered the most compliant way of calculating turnover for trading in the stock market?

Scrip-wise turnover Trade-wise turnover Contract turnover Average turnover

Which ITR form is required to be used when declaring trading as a business income in India?

ITR 1 ITR 2 ITR 3 ITR 4

What does a personal balance sheet summarize?

Income and expenses Assets, liabilities, and net worth Trading profits and losses Taxable income and deductions

Which of the following is NOT a typical component of a personal balance sheet?

Cash in hand Outstanding credit card balances Salary income Property value

What does the Profit & Loss (P&L) statement summarize for a financial year?

Assets and liabilities Trading turnover Revenue streams and expenses Taxable income and deductions

Which of the following is NOT considered a valid expense for a trader when calculating the P&L statement?

Brokerage charges Advisory fees Salary income from another job Rent for trading office space

What are the two essential books of accounts that an individual with trading as a business income should maintain?

Sales book and Purchase book Cash book and Ledger book Bank book and Trading book Journal book and General ledger

Is an audit required if the trading turnover is less than Rs. 5 Crore and profits are higher than 6% of the turnover?

Yes, always required No, not required Only if total income exceeds the basic exemption limit Depends on the type of trading (speculative or non-speculative)