Applicability of Tax Audit in India

Income Tax Tax Audit
144

Check this clearly mentions if you don’t opt for 44AD then the limit is 10cr for cashless transaction.

Since Fno is completely online there is no part of cash transactions applicable.

Kindly don’t opt for 44AD because you may have to show the income less than 2 cr. Suppose you trade more then it will not be applicable if turnover crosses 2cr and then if you make a loss then you are eligible for audit.

Kindly read more on 44AB and 44AD 44AB(e) the limit is 10CR no Audit required.

Fill ITR-3 To carry forward and set of losses. No questions asked if turnover is less than 10Cr

145

Thanks Man. Much appreciated.

Just wondering whether Quicko has outdated information/rules. @TeamQuicko, @Quicko please clarify.

1 Like
146

I guess if you have earlier opted for 44AD. Then you need to have audit of income is more than 2.5 lpa.

If you are filing it for first time. Then opt out.

147

Hi Akash

You will have to file ITR-3 since you have an intraday turnover which is a speculative business.
You cannot opt for presumptive scheme since your income is > 2.5 lacs.
Tax Audit will be applicable u/s 44AB because you’ve incurred speculative losses.

You can carry forward this loss of INR 500 for 4 years and set-off against any speculative gains in the consecutive years.

Hope this helps.:slight_smile:

148

Hello, In fy 20-21 income from business is 235000 and net agriculture income is 300000 and turnover of business is 6600000. Pls inform me that tax audit is required although earlier 44Ad was opted from last 3 years.

149

How to get my trading account Audited ? I don’t know any Chartered Account.
Does Quicko provide reference to Chartered Accountants ?

150

Hi @Rahul_1992, Quicko is a DIY tax planning and filing platform. In cases where an Audit is required, a practicing CA has to review your books of accounts and prepare an audit report.
On users requests, we connect them to a practicing CA who can help them with their tax requirements.

151

Hi @Kapil_Kochar, tax audit will depend on your incomes and earning. I suggest you use the tax audit tool to understand whether tax audit will be applicable to you or not.

152

Hi

I do have an salary income of 6lakh and I made FNO loss of 1 lakh for turnover of 30 lakhs.

Is tax audit applicable for me ?

if yes , does quicko provides service of tax audit ?

Please give some hints on that.

Thanks

153

Hi @Rakshit_Shah

Yes, tax audit under section 44AB will be applicable to you since you’ve incurred a loss on your F&O turnover and your income is above the basic exemption limit.

@Yash_Kaviya does Quicko provide Tax Audit services? :thinking:

154

Hi @Rakshit_Shah, as @vinith.r correctly mentions, a tax audit shall be applicable to you.
Quicko is a DIY tax planning and filing platform. In case users request, we can connect them with a practicing CA who can help them with their tax requirements.

155

Will they audit my account .?

156

@Rakshit_Shah since your books require an audit, a CA will audit your books and file an audit report with the IT Department.

157

Hi… Expert.

I am Salaried drawing 8.00 lacs/annum total CTC income from salary.

Intraday/Speculative profit = +12105.15
Short Term profit = +83489.05
Intraday/Speculative turnover = 13655.15
Other Credits & Debits = 742.36

Options Realized Loss = -760384.8
Futures Realized Loss = -16762.5
Options Turnover = 45438518.05
Futures Turnover = 33112.5

In above scenario is tax audit applicable for me AY- 2022-2023 …???

Pls suggest

158

Hi @Mayank_Soni

  1. Your income > 2.50 lacs (basic exemption limit)
  2. You have incurred a loss on your F&O turnover i.e., Non-speculative Loss.

For the above reasons, you’re liable to get your books audited u/s 44AB for A.Y 2022-23.

Hope this helps.
Let me know if you need any further clarification. :slight_smile:

159

Hi,

I have option turnover of ~Rs 3Cr. My questions below:

  • Is audit required for my book of accounts?
  • Can I opt for presumptive taxation scheme and show my income as 6% of Rs 3Cr = Rs 18 lakhs?

Many thanks in advance.

160

Hi @soodgaurav

  1. No tax audit will be applicable to you if: (any one condition to be met)
    A. Total Taxable Income upto 2.5 lakhs.
    B. If Net Profit greater than 6%. (18 lakhs)

  2. 44AD can be opted only if your turnover is upto 2 cr. Therefore, you are not eligible for 44AD.

Hope this helps. :slight_smile:

161

businesses can get registered for the MSME benefits with udyam udyog aadhar registrations and can get various advantages of state and central government benefits schemes , cheaper bank loans atc .

i am into business of share stock market trader !

how can i make myself eligible for such schemes and benefits ?

pls enlighten !!

@Sakshi_Shah1

162

Hi @HIREiN

To check if a stock market trader is eligible to get registered under MSME or Udyog Aadhar, the MSME Act must be checked. You can check the same here - Udyam Registration : Zero cost, No Fee and Free Registration of MSMEs. This is official website of Govt. of India, Ministry of MSME. No other website/portal/app is official. MSMEs are requested to do MSME Registration here only

If you need help with taxation for stock traders, reach out to us.

163

If I have losses from F&O Trading, is Tax Audit mandatory?