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)

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)

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)

04 June 2025 profit is taxable under normal business income.

Keyur

Keyur (Querist)

11 June 2025 Turnover means how much limits?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

11 June 2025 If minimum 6% profit declared then up to 10 lakhs no audit liable.

Keyur

Keyur (Querist)

12 June 2025 Sir,

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

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

12 June 2025 No, if turn over is more than 3 Crs.

Keyur

Keyur (Querist)

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)

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)

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)

16 September 2025 Good Luck..

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