Confusing about two bvusiness

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bhanu

student

37 Points Joined May 2017

I have incurred a loss of Rs.40 lakhs in F&O trading.My turnover i.e Sum of credit & debits is Rs.76 Lakhs and my F&O sales is 29cr. .Would you please advice me Which one i take total turnover from following... 1) F&O T.O. 76Lac 2) F&O sales 29Cr. ?????????

Replies (8)

Krishna Singh

20 Points Joined January 2017

Yes, your books of account must be Audited by CA as per income tax act and require to file ITR 3.

bhanu

student

37 Points Joined May 2017

Thank You Sir for your reply, would you pleace advice me that in which base I'll audit my books of a/c's i.e. as per F&O deffinition my T.O. is only 76Lac but as per sec.44ab my sales is 29cr??????

Krishna Singh

20 Points Joined January 2017

29 Cr will be taken as sale for tax audit.

Guest

Your turnover is the sum of credits & debits, 76 lac. And you are not liable for tax audit if your total income is below taxable limit..

bhanu

student

37 Points Joined May 2017

BUT SIR MY F&O PURCHASE IS 30CRORE AND MY F&O SALE IS 29CRORE,TURNOVER AS PER YOU SAID (I.E DEBIT AND CREDIT SETOFF IS 76LAKH). THEN HOW CAN I CLASSIFY WHAT IS PURCHASE ???

gyan chaudhary

15 Points Joined June 2017

turnover for you will be 76 lacs. Assuming you have calculated correctly options part. you will need tax audit since your profits are less than 6% of turnover. Audit will help in carry forward of losses as well

bhanu

student

37 Points Joined May 2017

THANKS SIR, BUT IN WHICH BASE I PREPARE MY F&O PROFIT AND LOSS STATMENT OR BALANCESHEET FOR AUDIT I.E. SALE 29CR. OR T.O. 76LACK. IF 76LAC THEN WHAT ABOUT PURCHASE??????

Guest

The sum of credits and debits is only for determining about tax audit applicability. For profit and loss account, prepare it as per normal accounting process; crediting all gains from settlement and debiting all losses.