Regarding ITR & Tax Audit for Salaried and F&O trading

For FY-20-21, my F&O turnover is around 8 Cr and I I have incurred losses of around 5 lacs.
I am also having a salaried income which falls under taxable slab.

  1. Do I need a tax audit??
  2. Is audit required to carry forward these losses in next FY??
  3. Can I set off these losses in my current ITR against tax deducted from TDS ( due to income from salary & FD’s)??

Hi @ajj1

  1. Tax Audit is not required if your total income is less than 2.5 lakhs and Turnover is up to 10 crore from F&O Trading.
  2. Losses can be carried forward by filing ITR 3 without tax audit too if conditions are met.
  3. Losses from F&O can be set off against FD Income in the current year ITR but not against Salary Income.

Hope this helps!

intraday profit 55000 turnover(56000)
short term (-35000)
charges (-27000)
futures (-10000) turnover(10000)
options (-592000) turnover(5700000)

net loss is (-656000)
salaried person more than 2.5l
do i need to audit to carry forward loss or else can i file in itr itself
as turnover is less than 1 crore but total income(salary) is greater than 2.5 l do i need audit?
if audit is required is zerodha or quicko provide this service and on average how much it costs for audit
thanks in advance

I’m a salaried employee with more taxable income of 6 lakhs after all deduction around
I traded in FnO for the first time and made a loss of 31k and turn over around 32L
I also made short term gains of 10k
Intraday I suffered a loss of -1.36K and turn over was just above 3k
Which ITR should I file? and Is the audit required since I have crossed FnO threshold
and my form 16 doesn’t contain the NPS in which I invested (march 31 2021) , can I specify that now?

Hi @Ramalingam,

Quicko is an online tax filing platform. However, when our customers have audit requirements, we connect them with Chartered Accountants who could conduct tax audit if you want.

Hi @Pravesh_Agarwal,

Since you have a business income of Intraday (speculative business income) and F&O (non-speculative) business income you should file ITR 3.

In case you have made the NPS investment before the financial year ends i.e. 31st March 2021, you can declare it when filing your ITR.


My Salary income is above 10 Lakhs, have dividend and STCG income.

Have Intraday turnover of 317573 with Loss -154460

Is Tax Audit applicable.

Does Quicko provide Tax Audit services.

Hi @Giri,

Quicko is an online tax filing platform. However, when our customers have audit requirements, we can connect them with Chartered Accountants who could conduct tax audit if you want.

What will be the tax audit charges please.

@Giri, if you can share your contact details on Quicko | Contact Us our team will get in touch with you for your ITR filing requirements.

Hi [Nireka],
Can u give me clarifications, in case of Options trading my turnover is the sum of Absolute Profit and premium on the sale of Options.

Suppose: Absolute figures Rs.350000/- and Premium on option sold is 40,00,000/- Total Turnover is Rs.43,50,000. Loss Is -1,20,000 and salary income also 15,00,000

while filing of ITR 3 , i will take tunover is Rs.43,50,000 and loss is Rs.1,20,000/ in profit and loss account of ITR3.

while preparing for Profit and loss account balance sheet for tax audit. Wchi value i have to consider as Tunover is Rs.43,50,000 or 3,50,000/-

Hey @KISHORE9220, the amount of INR 43,50,000 is your turnover amount. As turnover is absolute profit + premium on sale of options and this same amount will also be considered in the case of your tax audit. Hope this helps!

How to show intraday loss or gains in income tax return? I want to show it under normal case. I am not opting for no account case as I have loss from F&O also. Plz guide

Hey @shindeonkar95

Intraday or F&O transactions are reported under business income head as per income tax.

Such gain or losses should be reported under normal business income, other than presumptive income.

Hello Team,

I would like to know about F & O and Commodity Intraday Trading (Gold, Silver, Natural Gas) when the audit required? and also please clarify about how to calculate turnover. (Its actual contract value or just the profit and loss amount calculated as a turnover)

Awaiting for your reply.


Hi @aakash1

Turnover for F&O and Commodity Intraday Trading will be calculated as below:

Futures & Intraday Trading - Absolute value of Profit & Loss
Options - Sales Value + Absolute value of Profit & Loss

For audit applicability you can refer to the below calculator:

Hope this helps :slightly_smiling_face:

I am confused with one thing, which even here it is not mentioned.
If my income comes under taxable slab, and if i have losses in options and turnover is less than threshold… will Audit be applicable here? As in sub section e of 44AB, it is mentioned that if I had opted for presumptive taxation earlier and declared profits of 6% or more, and now if I am declaring less profits, then only Audit will be applicable… right?
If this is my first trading year, then Audit shouldn’t be required… right?

Hi @Sam_1234
Since your total income is below taxable slab i.e 2.5 lakhs, tax audit u/s 44AB will not be applicable if turnover is below threshold (10 Crore from AY 2021-22 onwards) irrespective of any other condition.

You can check your tax audit applicability from the below tool:

Hope this helps :slightly_smiling_face:

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 @Sam_1234

Yes, we recommend a tax audit in such an income situation.

Hope this helps!