Applicability of Tax Audit in India

Income Tax Tax Audit
84

Hi @Ramalingam,

Quicko is an online tax filing platform. However, when our customers have audit requirements, we connect them with Chartered Accountants who could conduct tax audit if you want.

85

Hi @Pravesh_Agarwal,

Since you have a business income of Intraday (speculative business income) and F&O (non-speculative) business income you should file ITR 3.

In case you have made the NPS investment before the financial year ends i.e. 31st March 2021, you can declare it when filing your ITR.

86

My salary income 9lakh, f&o loss 21000 on turnover of 27000, intraday profit is 22000 on turnover of 75000. Is tax audit required?

87

Hey @Sharta,

Tax audit is applicable in case there:

  1. Turnover is above the threshold
  2. Profit is less than 6% of the turnover and total taxable income is above the basic exemption limit.

Read more

88

Hii I want to know whether I need audit or not
My conditions

  1. Turnover is greater than 2 crore in f&o
  2. loss is above 4 lakh
  3. no other source of income
  4. money taken from parents
89

Hi,

My Salary income is above 10 Lakhs, have dividend and STCG income.

Have Intraday turnover of 317573 with Loss -154460

Is Tax Audit applicable.

Does Quicko provide Tax Audit services.

90

Hi @Chandra,

91

Hi @Giri,

Quicko is an online tax filing platform. However, when our customers have audit requirements, we can connect them with Chartered Accountants who could conduct tax audit if you want.

92

What will be the tax audit charges please.

93

@Giri, if you can share your contact details on Quicko | Contact Us our team will get in touch with you for your ITR filing requirements.

94

Hi [Nireka],
Can u give me clarifications, in case of Options trading my turnover is the sum of Absolute Profit and premium on the sale of Options.

Suppose: Absolute figures Rs.350000/- and Premium on option sold is 40,00,000/- Total Turnover is Rs.43,50,000. Loss Is -1,20,000 and salary income also 15,00,000

while filing of ITR 3 , i will take tunover is Rs.43,50,000 and loss is Rs.1,20,000/ in profit and loss account of ITR3.

while preparing for Profit and loss account balance sheet for tax audit. Wchi value i have to consider as Tunover is Rs.43,50,000 or 3,50,000/-

95

Hey @KISHORE9220, the amount of INR 43,50,000 is your turnover amount. As turnover is absolute profit + premium on sale of options and this same amount will also be considered in the case of your tax audit. Hope this helps!

96

Is the tax audit clause of section 44AD applicable to all eligible assessees or only to those who opt for the presumptive taxation scheme?

97

Hey @NotAtAllSatwik, Section 44AD is the presumptive taxation scheme for business. A business with turnover up to INR 2 Crore can take the benefit of presumptive taxation under Section 44AD. You can read up about it from this article:

1 Like
98

How to show intraday loss or gains in income tax return? I want to show it under normal case. I am not opting for no account case as I have loss from F&O also. Plz guide

99

Hey @shindeonkar95

Intraday or F&O transactions are reported under business income head as per income tax.

Such gain or losses should be reported under normal business income, other than presumptive income.

100

Hello Team,

I would like to know about F & O and Commodity Intraday Trading (Gold, Silver, Natural Gas) when the audit required? and also please clarify about how to calculate turnover. (Its actual contract value or just the profit and loss amount calculated as a turnover)

Awaiting for your reply.

Thanks
Aakash

101

Hi @aakash1

Turnover for F&O and Commodity Intraday Trading will be calculated as below:

Futures & Intraday Trading - Absolute value of Profit & Loss
Options - Sales Value + Absolute value of Profit & Loss

For audit applicability you can refer to the below calculator:

Hope this helps :slightly_smiling_face:

102

Hi,
I am confused with one thing, which even here it is not mentioned.
If my income comes under taxable slab, and if i have losses in options and turnover is less than threshold… will Audit be applicable here? As in sub section e of 44AB, it is mentioned that if I had opted for presumptive taxation earlier and declared profits of 6% or more, and now if I am declaring less profits, then only Audit will be applicable… right?
If this is my first trading year, then Audit shouldn’t be required… right?

103

Hi @Sam_1234
Since your total income is below taxable slab i.e 2.5 lakhs, tax audit u/s 44AB will not be applicable if turnover is below threshold (10 Crore from AY 2021-22 onwards) irrespective of any other condition.

You can check your tax audit applicability from the below tool:

Hope this helps :slightly_smiling_face: