If my delivery based trading turnover is 3 crore but I have incurred a net loss. My intraday and F&O turnover are less than 50 lakhs with a profit of 275,000. Is the Tax Audit applicable?
Tax Audit as per Income Tax Act is required to be determined only if the equity delivery trading is treated as business income. Since the turnover for business income is less than 1 Cr and profit is less than 6% of turnover, tax audit would be applicable only if the total income from all sources is more than the basic exemption limit.
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