Urgent..... Minor loss in intra day trading

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A user is seeking urgent advice regarding a small intraday trading loss of £6 on a turnover of £6819, while their professional income exceeds the tax exemption limit. They are unsure if an audit is required and wish to declare the speculative loss without one. Advice suggests that the speculative loss can be ignored if the turnover is below £1 crore. Alternatively, it can be declared under Section 44AD with a 6% profit margin, or if 44AD wasn't opted for previously, filed under ITR 3 with book loss for carry forward, avoiding a tax audit.

LAXMI SHAKYA

LAXMI SHAKYA (Querist)
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30 July 2022 Dear All,
Assessee has intra day turn over 6819 and loss therein is Rs. 6/- minor loss only one transaction was done.

Whereas Professional Income exceed basis exemption limit...

I'm confused turnover is below 1 CR but speculative loss is Rs. 6/- total income exceed basis exemption limit... What to do of audit..... Pls suggest, how to show this speculative loss of Rs. 6/- without Audit also without further litigation.

Pls suggest urgently....

Thanks
Laxmi

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 July 2022 If turnover of the speculative business is 6819, and has loss, you can neglect it in ITR filing.
File ITR for professional income.
Still if you wish to declare the single transaction in ITR, declare it u/s. 44AD of IT act, with 6% profit margin.

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LAXMI SHAKYA

LAXMI SHAKYA (Querist)
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30 July 2022 But sir as per section 43(5) it is speculative transaction

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 July 2022 Yes, agreed, but it can be declared u/s. 44AD of the act. Its eligible business.

LAXMI SHAKYA

LAXMI SHAKYA (Querist)
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30 July 2022 Sir there is loss, and the same is being reflect in AIS also, in 44AD books profit should be 6%, here books profit is in loss

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 July 2022 Even if you have loss, but section gives you option to declare 6% profit on 6819/- i.e. 409/- & pay tax over it.
Or if you had not opted for sec. 44AD in any earlier 5 years, you can file ITR 3 with books of accounts maintained and book loss, it will be carried forward, at the same time tax audit will not be applicable.

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