Tax audit and itr

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 Sir/Madam,
I am a intraday trader of shares and employee.i trade daily i.e 95% intraday.all sale amounts of intraday crossed 2 crores in the fy 2016-17.so it will required tax audit.and which ITR is required to submit..
Thanks in advance...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 June 2017 Form ITR - 3 may be used.

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 Thanks for reply and what about tax audit

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 July 2025 For intraday trading in shares, here’s how tax audit rules apply:

* As per **Section 44AB**, if your **gross turnover (sale + purchase)** exceeds ₹1 crore (₹2 crore limit is for other businesses), tax audit is **mandatory**.
* In case of intraday trading, **turnover means total of absolute profits and losses or total of all sales and purchases** depending on the method you use for calculating turnover.
* Since your **sale amount crossed ₹2 crore**, tax audit **is applicable**.

**Which ITR to file?**

* Use **ITR-3** (since you have income from business/profession, i.e., trading).

**Summary:**

* Tax audit: Yes, required.
* ITR form: ITR-3.

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