Hey Sneha,
Tax Audit is not applicable when the total income is less than the basic exemption limit and the trading turnover is less than INR 1 Cr. So in your case, Tax Audit will not be applicable.
You can read more about Tax Audit on trading income on our Learn Center !
If my delivery based trading turnover is 3 crore but I have incurred a net loss. My intraday and F&O turnover are less than 50 lakhs with a profit of 275,000. Is the Tax Audit applicable?
Hey Hariharan,
Tax Audit as per Income Tax Act is required to be determined only if the equity delivery trading is treated as business income. Since the turnover for business income is less than 1 Cr and profit is less than 6% of turnover, tax audit would be applicable only if the total income from all sources is more than the basic exemption limit.
Read more about how to treat Sale of Shares as Capital Gains or Business Income on our Learn Center.
I am a full-time investor …No Salaried Income…in the financial year 2019—2020. I incurred a loss of around 4 lakh rupees…I only buy shares in delivery… That is the cash market. Non-speculative. Trading…my total income was a loss of rs 4 lakh. Turnover was less than 50 lakh.
So do I need to go for a TAX AUDIT?
Dixita
Hey Dixita,
Tax Audit is applicable in case:
You can also check your tax audit applicability using the Determine Tax Audit Tool 
If my total income for FY 2020-2021 is zero. However, I have an F&O trading loss (Business Loss) of Rs 2,36,168 with sales turnover of Rs 1.5 Lakh and also, I have intraday trading loss (Speculation loss) of Rs 3,85,295.
In this case, do I need to get my income tax audited?
Hi @b500
In the above case since the total income is less than the basic exemption limit and turnover does not exceed the limit. Tax audit shall not be required.
Hello Quicko Team,
I am Salaried Individual. My Annual salary is greater than 250000.
I also do Intraday and F&O Trading. I have suffered following losses for FY 2020-2021:
Speculative (Intraday Trading Loss) : 15085
Turnover : 86537
Non-Speculative (F&O Trading Loss) : 65892
Turnover : 315918
Overall Loss is around 20% of total Turnover.
I have read various articles regarding Tax Audit but I am not sure about Tax Audit is required or not
Do I need to get Tax Audit done ?
Thanks in advance for your response.
Since your income is greater than basic exemption limit of 2.5 lacs and you have incurred losses from trading, you will have to get a tax audit done.
Hope this helps.
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. 
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,
“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.
My total turn over in fno is 5 lakhs and profit 80k for 20-21. Is audit required? Is there anything specific to be done to opt for presumptive scheme or it’s just if criteria is fulfilled so i can file itr 4? Am salaried and salary income is 15lakh.
If I gift some amount to my mother and she earns profit in FnO with that money. Will the profit be clubbed with my income to pay tax?
She is housewife.
Tax Audit is not required since profit is more than 6% of Turnover and Turnover is not exceeding the ceiling limit of 10 crore. You can opt for the presumptive scheme and file ITR 4. Nothing specific required.
Gift to relative is exempt from Tax. Clubbing shall not apply on anything earned on gift money.
