Intraday trading - File ITR 3 ? TaxAudit?

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deepanker sachdeva (Querist)
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13 December 2020 Hi,
I am a salaried person and have total income above 5 lac.
I did some intraday trading and had
Intraday Profit - Rs.11
Intraday Turnover - Rs. 3010

As per some articles that I read on cleartax, quicko etc.,
It seems like I should file ITR 3 and since, my Intraday profit is less than 6% of turnover - I am liable for tax audit.

I wanted to confirm regarding the same.
Is it fine to consider it as SCTG and file ITR 2/3 so that I don't have to get tax audit done?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 December 2020 File ITR 3 it's speculative transaction tax audit not applicable for this amount.

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deepanker sachdeva

deepanker sachdeva (Querist)
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14 December 2020 Thank you very much sir for the advice.
One follow up question - While filing ITR3, do I have to put this transaction as Business Income. And what about maintaining Book of Accounts?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 December 2020 Yes, show it under business income. Books of accounts not required for this small amount.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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15 December 2020 Yes you can file your IT return without tax audit because your turnover is less than the tax audit limit.

deepanker sachdeva

deepanker sachdeva (Querist)
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16 December 2020 Hi CA R SEETHARAMAN & Spurto Consultancy,

Thanks for the advice but I found a different opinion on some other articles.
As per that, if I use 44AD and file ITR 4, then I have to show a minimum of 6% of turnover as profit.
Otherwise, I will be required to do tax audit.

If I don't use 44AD and file ITR3, I have to show it as normal income and maintain book of accounts and also do tax audit.

Let me know if that's true.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 December 2020 Intra day trading is speculative business so 44AD not applicable.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2021 I beg to differ, though speculative business, intraday business is eligible for presumptive assessment u/s. 44AD, provided other criteria are satisfied.

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