Applicability of Tax Audit in India

Income Tax Tax Audit
211

Hi, I have a short question; In the 6% of turnover calculation for audit applicability, is the Net profit just the trading profit (difference between sell and buy prices) OR is it the trading profit less deductible expenses? I am asking since I seem to have turnover of 5L, trading profits (sell-buy) of 35K, and deductibles (brokerage, STT etc.) of 15K.

Appreciate it if you help a newbie out

212

Hi
FY 2021-22 is my 1st year in trading. Before that only salary.
Non-Speculative turnover is 91L loss 60k
Speculative turnover is 5L loss 1L
Capital Gains 5k
Above for F&O,intraday equity and STCG only

Is tax audit applicable?

Thank You.

213

so this option is in Quicko but is there something like opt out from tax audit in Income tax portal? or its mandatory (because quicko is saying its aplicable in my case)

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214

I have F&O turnover of about 60L and a loss of -14,000, taxable income is more than 3L. Can I skip audit if I don’t wish to declare and carry forward losses?

215

Hey @Laxmi_Navlani , can you please help here?

216

Hi
FY 2021-22 is my 1st year in trading. Before that only salary.
Non-Speculative turnover is 91L loss 60k
Speculative turnover is 5L loss 1L
Capital Gains 5k
Above for F&O,intraday equity and STCG only
Is tax audit applicable?

Thank You.

217

I have F&O turnover of about 60L and a loss of -14,000, taxable income is more than 3L. Can I skip audit if I don’t wish to declare and carry forward losses?

218

Hey @A_das @sim, if your turnover is below INR 2 crore, then tax audit under Section 44AB(e) will be applicable if all the below conditions are satisfied:

  • Incurred loss or profit is less than 6% of turnover
  • Total income is more than basic exemption limit
  • Taxpayer has opted out of presumptive taxation scheme in any of the previous 5 financial years

Here’s an article that talks more about Tax audit applicability for traders

Hope this helps

220

From above its clear audit is applicable, but my question is whether it can be skipped because I am not clubbing loss income with any other income (i.e I am not offsetting the loss anywhere).

221

I have F&N losses, I have to file ITR3 but Tax audit is applicable. so i want to know the due date to file ITR. and kindly help me with tax audit. how to find CA for tax audit.

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please help me

222

@Nireka @TeamQuicko kindly help me with information.

223

Hey, the due date to submit tax audit report for FY 2021-22 is 30th September 2022 while the due to file ITR where tax audit is applicable is 31st October 2022.
You can write to us at help@quicko.com and we will get in touch with you regarding your audit requirements.
Hope this helps

1 Like
224

Hi Sreetama, I have raised a support request (request id 20891) for audit, but havent heard anything from Quicko yet on it. Please help.

Thanks

225

Sure, we are looking into it

226

Hi,

My turnover is 6.5 Cr (99.5% non-cash transactions) which is less than 10 Cr for permissible cases. Profit is 10 Lakh. Do I need to get audit done? I read that audit is mandatory if taxable income less than 6% of turnover?

227

I have net income from salary about 5.5 lacs per anum whereas, the F&O transactions is about 49 lacs (with a loss of about 1.6 lacs). Do I need to file Audit report? Please refer DAQ of Income Tax department. Please help.

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228

Hey @Surabhi_Choudhury @Indranil_Chowdhury,
Tax Audit is applicable u/s 44AB if

  1. Turnover > 10Cr or
  2. Turnover < 2 cr
    2a) Profits < 6% of turnover
    2b) Taxable Income above basic exemption (2.5 lacs)
    2c) opted out of the presumptive scheme in the preceding 5 years

Here’s an article that you might find useful

230

Thanks. This is helpful. A further query:

If the turnover is 6 Cr in AY 23 and may have a loss,
Turnover was 1 Cr in AY 22 and person opted for presumptive taxation at 6%.

Will audit be applicable for FY 23?

My understanding: The criteria says no as turnover this year is above 2 Cr and below 10 Cr. So the fact that person opted for presumptive taxation in the last year is irrelevant.

Kindly confirm this understanding is correct?

231

Hi Team,

I have income from salary and FNO losses. The Turnover falls < 25 Lakh and losses are <=6%. So, In this case tax audit is applicable. My query is that what if I choose to opt-out during filing? If I need to opt-in the audit, then what will be the minimum fee I have to pay to CA. If Quicko can help in this matter.
Alok

232

Tax Audit is applicable u/s 44AB if

Turnover > 10Cr or
Turnover < 2 cr
2a) Profits < 6% of turnover
2b) Taxable Income above basic exemption (2.5 lacs)
2c) opted out of the presumptive scheme in the preceding 5 years

However, it is up to the user to opt-in or opt-out of tax audit. Incase you need assistance with tax audit, you can write to us at help@quicko.com and our team will get in touch with you for the same