Please suggest if a tax audit is required or not as my loss is greater than 8% of the turnover in F&O trading.
Salary income > 10 lakhs
ASOS income (bank interest) = 50,000
Chapter VI A saving = 1 lakh
The F&O /Intraday detail is as follows.
Fin Year 20-21:
Short term profit = 1 lakh
Long term profit = 0
Intraday/ speculative profit = 8,000
Intraday turnover = 8,000
Futures profit = -10.75 lakh
Futures turnover = 20 lakh
Option profit = 75,000
Option turnover = 30lakh
Total F&O profit = -10 lakh
Total F&O turnover = 50 lakh
Whether tax Audit is required for filing the return? My loss is 20% of the turnover which is greater than 8% of turnover.
Whether the Short term profit (1,00,000) be set off with F&O loss (- 10,00,000) during filing? Whether the intraday profit (8,000) be set off with an F&O loss of (- 10,00,000)?
What are the charges for (a) tax audit and (b) return filing. And any other charges for filing?