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Discussion > Income Tax > Tax queries >

Income Tax Audit Rules for Derivative Traders

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[ Scorecard : 24]
Posted On 12 June 2011 at 17:29 Report Abuse

Hi ! I am a Salaried Employee with Salary Income of Rs 21 Lakhs. I have been dealing in F&O Trades where the Turn over is Rs 18 Lakhs and Loss is Rs 1.8 Lakhs for AY 2011-12. I have STCG of Rs 20000 by way of short term sales of Shares and other Income of Rs 12000 by of Interest on Bank FDs. I have doen e filing for previous years and has Carry Forward Losses. I have not done Auditing of my accounts for previous years. However, my accounts are maintained as these are done online.

Now My query is, Shall I have to do Audit for AY 2011-12 under new rules for 44AD as the income declared is less than 8%?

I will be filing ITR 4 E returns and require clarity whether Audit of Accounts are required or not ?

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[ Scorecard : 2767]
Posted On 12 June 2011 at 17:38

Section 44AD is applicable on business income, assuming you are not trading in F&O as broker you doesnt have any busines..........

so u need NOT to get your accounts audited since 44AD is not applicable in your case(so no question of lower than 8%)


[ Scorecard : 8286]
Posted On 12 June 2011 at 17:57

Yes, as per my opinion since u haveing F&O Turnover of Rs. 18 lacs on which loss is rs. 1.8 so if u want to carried forward then Tax Audit is compulsory. . . . . . . . . . .

CA Ravi Kumar Murugesh

[ Scorecard : 748]
Posted On 04 August 2012 at 14:00

There is no tax audit requirement to individual who are not doing business.

 It is not applicable, if you do the share trading on your own not on behalf of others.

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