hi
I am salaried employee having 6 lakh package. I got profits of 25k from selling of IPO and incurred a loss of 31k in F&O (This is my only trade so turnover is around 35k). Now i want to set off my STCG profit with F&O loss .
My question is , is tax audit is necessary because i am showing less than 6% profit .
Thank you
Hey @lakshman_kumar,
As the turnover is below ₹10Cr, tax audit is not mandatory. In case you opted for the presumptive taxation scheme in any of the previous years, then the rules would would differ.
Hi @Surbhi_Pal
Are there other stipulations like P&L turnover should be at least 6% of the total profit to avoid Audit? In effect, if trading in F&O results in loss should that be subjected to audit straight away irrespective of the turnover? Appreciate your clarification
Hi @gdshan,
If you have not opted for the presumptive taxation scheme in any of the previous years and the transactions are all cashless (which is the case for F&O trading), the only criteria to determine audit applicability is the business turnover. If it exceeds ₹10Cr, a tax audit will be mandatory.