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Tax Audit Limit fno

CA Raj Doshi (Practising CA) (8799 Points)

23 May 2021

Can we carry forward trading intraday/F&0 loss without audit? If so under what conditions/circumstances?

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8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 23 May 2021

Loss under Intraday Trading can be claimed if Tax Audit u/s 44AD is performed by a professional Chartered Accountant. The loss can be carried forward and set off against future profits to reduce the income tax liability. Non-Speculative Loss can be carried forward for 8 years

veerendar singh (tax consultant) (3301 Points)
Replied 23 May 2021

In case of loss in speculation loss or fno business loss the audit becomes mandatory.

there is only one condition which can relieve the tax payer from auditbrequirement- if his total income is below BEL.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 23 May 2021

Agree

1 Like

anil jain (Partner) (1067 Points)
Replied 24 May 2021

can you pl provide with the related provision under which section this is required.

veerendar singh (tax consultant) (3301 Points)
Replied 25 May 2021

44ab and 44ad

1 Like

anil jain (Partner) (1067 Points)
Replied 25 May 2021

but in those sections, no where it is mentioned that in case of loss in FnO/speculation, tax audit is required.

If some one is in different view, please quote the related section.

Thanks

veerendar singh (tax consultant) (3301 Points)
Replied 25 May 2021

It does not have a specific mention of speculation business.

but cant you make from the general provisions which are applicable for all businesses, which requires audit in case of loss.