Requirement of CA certificate

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This discussion clarifies whether a CA certificate is required for Futures & Options (F&O) trading during FY 24-25 for income tax return filing. Generally, it's not needed unless a tax audit is applicable. The applicability of a tax audit depends on turnover limits and profit margins. If turnover exceeds 3 crore but profit is declared at 6% or more, up to 10 lakh turnover, no audit is required. Losses from F&O can be shown under business income, even with high turnover, if it's the first year of trading and audit conditions aren't met.

Keyur

Keyur (Querist)
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04 June 2025 Sir/Madam

Can anyone guide me any CA Certificate is required for FNO transaction made during the fy 24-25 for filling of income tax return.

Profit is taxable under the head Speculative business income??

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 June 2025 In general, not required; but check for tax audit applicability based on turnover and/or percentage of profit/loss.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 June 2025 profit is taxable under normal business income.

Keyur

Keyur (Querist)
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11 June 2025 Turnover means how much limits?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 June 2025 If minimum 6% profit declared then up to 10 lakhs no audit liable.

Keyur

Keyur (Querist)
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12 June 2025 Sir,

Loss occurred and sales value more than 3 crs than tax audit application?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 June 2025 No, if turn over is more than 3 Crs.

Keyur

Keyur (Querist)
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12 June 2025 This was happened in first time only. No F&O transaction in past years..

So no audit is required, just show loss in Business Head under fno transaction?

Keyur

Keyur (Querist)
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12 June 2025 This was happened in first time only. No F&O transaction in past years..

So no audit is required, just show loss in Business Head under fno transaction?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 June 2025 Yes, continue filing without tax audit, provided TO is more than 3 Crs but less than 10 Crs.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 September 2025 Good Luck..

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