Tax Audit in case of F & O LOSS for SALARIED PERSON

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If you're a salaried individual with F&O losses, a tax audit may be necessary depending on your turnover and declared income. While filing ITR-3 and declaring F&O trades as business income can sometimes avoid a formal audit, it's crucial to maintain proper books of accounts. If you don't declare at least 6% of your F&O income, a tax audit might be mandatory.

BHAVESH

BHAVESH (Querist)
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27 June 2022 Tax audit applicablity, in case of Salary is above Taxable Limit and F & Loss is 50K and F & O Turnover is 11 Lakh (for 1st time.). Last ITR is ITR-2 and not 44AD.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 June 2022 Tax audit not applicable in such a case

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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28 June 2022 If you declare 6% income on F&O trading then no need of audit otherwise books need to get audited.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 July 2022 File ITR 3 declaring F&O trade under Business income, with books of accounts maintained. No tax audit applicable, but loss would be carried forward.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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07 July 2022 Same will be rejected as made in one of my case.

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