F & O and Equity 5 Cr Purchase and sale 4.9 C

Save Share

This query is : Resolved

Quick Summary

This discussion addresses tax implications for a friend trading F&O and Equity with a turnover of ₹5 crore in FY 2023-2024. It clarifies that with an aggregate turnover exceeding ₹3 crore, ITR 3 must be filed, including a Balance Sheet and Profit & Loss statement, rather than opting for presumptive taxation under Section 44AD. While a tax audit isn't mandatory for turnovers below ₹10 crore, professional advice is recommended for accurate F&O turnover calculations.

Vijith Sourav

Vijith Sourav (Querist)

29 July 2024 Dear Experts

One of my friend is doing F & O and Equity, He did a 5 Cr Purchase and sale 4.9 C in the FY 2023 - 2024. Do we need to maintain Tally? In ITR 3 do We need to provide balance sheet and Profit & Loss .? Or else can we update no accounts option?

Can you please help me

Thank you
Vijith T K

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 July 2024 Check the total turnover of F&O trading::
under F&O trading, the turnover of futures will be the absolute profit, which is the sum of positive and negative differences.

Futures Turnover = Absolute Profit (sum of profit and loss made on various transactions throughout the year)

The turnover of options can be calculated by adding the premium obtained on selling the options to the absolute profit.

Options Turnover = Absolute Profit + Premium obtained on selling the options

If the aggregate turnover is below 3 Crs., you can opt for sec. 44AD IT act.
No books of accounts to be maintained. You can file ITR 4.

Vijith Sourav

Vijith Sourav (Querist)

29 July 2024 Sir, But the aggregate turnover is 5Crs in this case do we need to maintain books of accounts and which ITR need to use for the same.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 July 2024 File ITR 3 with Schedule BS & P&L ....

Vijith Sourav

Vijith Sourav (Querist)

29 July 2024 Noted sir, Thank you. Can I file myself or else auditor is required? since this is more than 5Crs is tax audit is applicable?

Note: i didn't receive any money to my bank account and also it's loss for me end of the march 13L Rs. Through F & O

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 July 2024 You can file it yourself, provided you are familiar with turnover calculations of F&O. Otherwise take help of any professional.
Tax audit is not applicable in your case when Turnover is below 10 Crs.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now