is audit report mandatory, even if you have booked loss of 2.5 lacs in FY 23 - 24 ?
I am a pensioner and have done some F & O trade last year, booked loss and stopped it. Now while filing ITR for FY 23- 24 , is mandatory to have audit report ?
Hey @NAVIN_SURTI,
The applicability of a Tax Audit is determined on the basis of turnover. In case of trading where 100% of the transactions are digital, the turnover limit for audit is 10Cr. Hence, if your turnover exceeds this limit a tax audit would be mandatory for you.
@NAVIN_SURTI same situation is with me but there are many other clauses like books of accounts, please get it clarified as I am also confused and looking for solutions and different tax experts have taken different stand for the same situation. Some say get it audited since you have incurred loss so it is mandatory, some negates it. Some say you need ro maintain account books since you have loss and some say that you do not have to. So, keep on researching
If your total income is below the taxable threshold and you have incurred a loss from F&O trading, an audit report may not be mandatory. However, consult a tax expert or accountant to ensure compliance with tax regulations based on your specific circumstances.
i have heard that the taxman asks for the audit if the assessee wants to show loss ?
Income term here refers to what - Salary income and F&O revenue, profit or just F&O profit or revenue as this will refer to business income.
In my understanding only business income should be seen as limits as when business losses can not be set off against your salary income, then salary income should not be included in calculating the basic exemption limit in context of business operations.
Any thoughts and stand on this?