Hi, My total income is above the taxable slab i.e. around 8 Lakh, but have never opted for presumptive taxation in previous year… then is audit needed?
Hi,
Just to clear one thing… as per subsection mentioned in 44AB, Audit in such cases is needed only if we had earlier declared profits 6% or more, right? Otherwise Audit wont be needed
Hi @Sam_1234
We recommend tax audit even if you had not opted for a presumptive taxation scheme in the previous financial year since we have observed ITD serves notices and marks return as defective u/s 139(9) when your total income is more than 2.5 lakhs and you report losses/profits less than 6% of Turnover in Schedule B & P and file ITR without tax audit.
For further queries, you can reach out to us on Quicko | Contact Us
ok Thanks… Don’t know why they will report this, as the same is mentioned under their section of IT Act.
Hi am a housewife and i have been learning option trading in banknifty so here my question is if my turn over is crossed 1cr and my profits are less than 6% and salary is above 2.5lk as per i know tax audit is required so why it is required. What i have to focus if i under tax audit. What are the consequences i am going to face. Am i doing any thing wrong because of that tax audit is required. See i am learning option trading from online source what i have understood that am doing. Like a spectulative kind. Is it illigal in terms of income tax point of view. Please answer my questions. Am really worried about it? Because i may earn good profits in option trading before investing my precious time and foucs i need to know whether am doing right or wrong?
Hey @Hanuma_Soumya, Tax Audit under Section 44AB of the Income Tax Act is the examination and review of the books of accounts of a taxpayer having income from business or profession. The taxpayer should appoint a practicing CA i.e. Chartered Accountant to audit the books of accounts. The tax auditor would ensure that books of accounts have been maintained correctly, report observations, and required information in the tax audit report. The applicability of tax audit depends upon the turnover/sales/gross receipts of the business or profession.
Furthermore, if you do not have your books of accounts audited as per requirements of Section 44AB, the Assessing Officer may impose a penalty under Section 271B. The penalty is lower of the following:
(a) 0.5% of Sales / Turnover / Gross Receipts OR
(b) INR 1,50,000
However, if the assessee can provide a valid justification and prove a reasonable cause for not getting a tax audit, the Assessing Officer may not impose any penalty.
You can read more about tax audit from the below article:
You can also reach out to us at help@quicko.com for any further help you may need.
Hi,
My Salary income is above 10 Lakhs.
Have Intraday turnover of 1.5 cr with Loss -9 lacs
Is Tax Audit applicable.
From… amit bangar
Hey @Amit_Bangar, we would recommend to have your books of accounts audited from the details provided by you.
Hello @TeamQuicko,
I’m a salaried professional and have been in F&O trading. My turnover is 30 Lakhs and have a loss of Rs. 83,000. I have tax audit applicable. Few questions regarding this, please clarify.
- Is tax audit mandatory and does IT dept strictly verify this(I remember a video by QUICKO where it was mentioned that it is lenient).
- What is the benefit of tax audit?
- What is balance sheet. Is it mandatory to give bank balance, balance with broker etc.
- I called quicko helpdesk enquiring about auditing cost. I got a reply to transfer the amount to a account and login to quicko once done. How does the payment to quicko get validated? Is the auditor payment separate and quicko payment separate.
Thanks!
Hello @nithin_h,
If turnover is not exceeding 2 crores, Tax Audit is mandatory if tax payer fulfils all the below mentioned conditions:
- The taxpayer has incurred a loss or the profit is less than 6% or 8% of Turnover / Sales and total income exceeds the basic exemption limit.
- The taxpayer has opted for presumptive taxation scheme in any of the previous 5 years.
Please refer to this article for further clarification.
Balance Sheet is a presentation of your assets and liabilities as on a given date for a particular business. Yes, It is mandatory to give bank balance, balance with broker, etc.
As per ICAI regulations, Tax Audit can be carried out by a practicing Chartered Accountant and Quicko being a company cannot accept Audit fees.
Can I declare profit at 6% under 44ad for F&O trades to avoid audit, even if incurred loss in trades and also turnover is less than 1 cr.
My total Stocks, F&O turnover for FY 2020-21 is 6.05 Lakhs with P&L of 1.19 Lakhs(Loss) and my Gross total income(including F&O and Salary) is 3.14 Lakhs. Is tax audit applicable for me.
@TeamQuicko @Quicko I have salary income of 11L and loses from FnO, my FnO turnover is 30L and loss is 93000, when i tried to file itr with quicko it said tax audit applicable, but it allows me to opt out of tax audit, so when quicko says that audit is applicable is it mandatory or will be better if available ? do i really need to get a tax audit, if so what will be the charges ?
and i also read from the same website (qna.tax), here Tax Audit Applicability for F&O Trading - #28
If turnover is not exceeding 2 crores, Tax Audit is mandatory if tax payer fulfils all the below mentioned conditions:
The taxpayer has incurred a loss or the profit is less than 6% or 8% of Turnover / Sales and total income exceeds the basic exemption limit.
The taxpayer has opted for presumptive taxation scheme in any of the previous 5 years.
and i have not opted for presumptive taxation scheme in any of the previous 5 years, so i think i dont need tax audit is that correct ?
please advice as soon as possible. Thanks in advance.
Hi,
Please suggest if a tax audit is required or not as my loss is greater than 8% of the turnover in F&O trading.
Salary income > 10 lakhs
ASOS income (bank interest) = 50,000
Chapter VI A saving = 1 lakh
The F&O /Intraday detail is as follows.
Fin Year 20-21:
Short term profit = 1 lakh
Long term profit = 0
Intraday/ speculative profit = 8,000
Intraday turnover = 8,000
Futures profit = -10.75 lakh
Futures turnover = 20 lakh
Option profit = 75,000
Option turnover = 30lakh
Total F&O profit = -10 lakh
Total F&O turnover = 50 lakh
Kindly suggest:
-
Whether tax Audit is required for filing the return? My loss is 20% of the turnover which is greater than 8% of turnover.
-
Whether the Short term profit (1,00,000) be set off with F&O loss (- 10,00,000) during filing? Whether the intraday profit (8,000) be set off with an F&O loss of (- 10,00,000)?
-
What are the charges for (a) tax audit and (b) return filing. And any other charges for filing?
Dear Team, I have below income please let me know the Tax Audit applicability
Salary 4.5 Lakhs
Hi @Vinay_Reddy, you can hop onto Quicko’s tax audit applicability calculator and input all your data there and understand whether a tax audit will be applicable or not.
Also you can refer to the following article to understand how tax audit applicability works.
Hi @iam.p.sampath, please refer to the following answer.
Here is the tax audit applicability calculator and the article you can refer too,
Shall be glad to assist if you have any other queries. 
Hi @suriya_kumar, please refer to the following answer to understand if there’s any audit applicability for you. If there are any further queries shall be glad to assist you.
Hi @K_S, you can use The Quicko calculator to know your tax audit applicability and can refer to this article to understand how tax audit works.
If there’s any further clarification you require please feel free to reach out.