How to get Tax Audit 44AB done for F&O trading?

I am being advised to get the Tax Audit done by @TeamQuicko, because of my F&O turnover of around 1.4 cr Rs.
What is the process to get it done?
How much time does a CA takes to do this?
What is the usual fees asked by a CA to do this?
Please suggest if I can reach CA online from any platform.

Thank You

Hi,

How about this case:

The turnover in FnO is 1.5cr and loss 4lakhs and taxable income more than 2.5 lakhs.

This is way below the 10cr limit also I have not spent more than 5% on any transaction.

How will the audit be applicable pls clarify.

This depends on lot of factors very confusing.

I am no expert, but I have been investing some time on Quicko. In there I can see following table to determine whether tax is applicable or not :

So, basically your case is same as me, you also have a turnover between 1-2 Cr. and have a loss (which is less than 6% of turnover).

Afters hours of research found this.

1.If you are a Fno trader classifying this income under business for a salaried person. The limit has been increased to 10Cr provided you don’t make any cash transactions >=5%.

Only turnover more than 10cr you will need an audit(should not have opted for sec 44ad presumptive tax scheme for last 5 years).

  1. If you have opted for presumptive tax scheme you need to show the profit of 6%(since we are presuming the income and paying tax only on this income at fixed percentage).

In this case you make a loss then you have to go for audit - also the turnover should be less than 2Cr - here the audit is applicable.

  1. Also that your net income if is more than 2.5 LPA and you opted for presumptive tax scheme then audit is applicable.

  2. If your net income is more than 2.5LPA but you have not opted for presumptive scheme and have incurred loss then just file ITR-3 - NO need for audit until 10Cr limit. You can carry forward and set off losses.

The only catch here is don’t opt for the 44AD until you make 6-8% returns on fno for 5 years consistently.

If you make a loss the next year and turnover is less than 2 cr then you have to get the audit done.

For business income less than 400cr the tax are also less. So don’t fall in trap of 44d if you are making losses.

Hope we can end this thread here.!

Screenshot_2021-12-29-02-45-24-250_com.android.chrome|230x500

Look at the above screenshot hope this clears the doubts.

@Ankit_Chauhan

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

Thanks Man. Much appreciated.

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

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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.