I want to understand about an Audit applicability for F&O trading in different cases as posted. Please share your expert views to come out of the biggest confusion.
20 December 2022
In all the cases 1,2 & 3 when turnover is below 10 Crs. tax audit is not applicable, whether there be profit or loss. In last case when turnover is above 10 Crs, tax audit is applicable.
22 December 2022
Dear Sir, Thank you very much for clearing most doubts. One more thing please clarify. Whether turnover is between 1 Cr to 2 Cr, will 44AD be optional or mandatory? Can we take benefit of "Carry Forward Loss" in case?
23 December 2022
Dear Sir, If you can continue few words in this series, I would like to ask that can an IT Department send us notice towards non audit compliance in case of Loss or below profit to 8 or 6%? Can an IT Department levy penalty towards non audit compliance? If yes then what should an assessee do to counter such harassment? Thanks in an anticipation for your valuable output.
23 December 2022
The audit liability is specified in sec. 44AB of the act. If you are liable to audit as per the section rules, you must comply it. But in case you are not liable to audit as per act, you need not worry for any non compliance, may there be any query from department or not.
23 December 2022
Secondly for any loss or profit less then 8/6% sec. 44AD also plays its part. So, if you had not opted the presumptive assessment in any preceding FIVE years, the audit liability under sub sec. 44AB(e) [r.w.s. 44AD(4&5)] is not applicable.
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