Tax Audit Applicability - Case

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This discussion clarifies tax audit applicability for a salaried individual who also trades in derivatives and equity. Despite having a loss in derivatives and short-term capital gains, the individual is not liable for a tax audit as it's their first year of filing their Income Tax Return (ITR) and they haven't opted for presumptive taxation in previous years.

Vineet Kumar

Vineet Kumar (Querist)
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22 March 2023 Hello Sir/Mam,

I am a salaried employee. I have also traded in Delivery and Options. Below is my financial situation:

Taxable Salary: 6,00,00
STCG in Equity: 5,000
Turnover in derviatives: 2,70,000
P&L in derivative: -75,000

If i want to carry forward my losses, am i applicable for a tax audit by a CA?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 March 2023 No. Not applicable unless you had audited your books for discontinuation of presumptive assessment u/s. 44AD in any preceding five years.

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Vineet Kumar

Vineet Kumar (Querist)
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23 March 2023 No sir, this is my first year of filing ITR. Thanks for answering.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 March 2023 In that case no tax audit liability. Good Luck..

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