Applicability of audit for turnover greater than 5cr and less than 10cr for FY 2020-2021

In budget 2021 turnover limit for audit was increased to 10cr, is this limit applicable for FY 2020-2021?

Hi @d.r,

The increased limit for turnover to INR 10 crore announced in Budget 2021 will come into effect from AY 2021-22.

Does this mean if the turnover is about 9cr in FY 2020-2021 an audit is required?

Hi @d.r,

The updated limit of INR 10 crore comes into effect from AY 2021-22 i.e. FY 2020-21. Have rectified the same in the previous answer. :sweat_smile:

Hi, I’m a student
For fy - 20-21
my tax slab is under 2.5lakhs
F and O turnover is 4.8crore
Loss from F and O is 50k,
total loss including expenses is around 2.5lakhs
Should I file IT Return?
If yes, is tax audit Applicable?
To carry forward my losses should I maintain books of accounts?

Hi @Akash,

To carry forward the losses, it is mandatory to file your Income Tax Return and report the losses before the due date.
Since your total taxable income is less than the basic exemption limit and the turnover is below the threshold of INR 5 crore for FY 2020-21, tax audit is not applicable.
You can use this tool to determine if a tax audit is applicable to you:

F&O trading is considered as a non-speculative business activity, therefore F&O losses can be carried forwarded to the next 8 years,

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“Not for Individuals having Turnover more than Rs. 5 Crore / trading entries more than 250.”
I wanted to buy ITR for equity Intraday and f&o plan
What does trading entries mean? Is it number of orders placed?

Hey @Akash,
Trading entries are the Number of Buy / Sell orders placed during the year.
If you can share your contact number or email id on this link or help@quicko.com, one of our team members can get in touch with you for details, pricing and process. :slight_smile: