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Applicability of Audit incase of Salary and F&O Loss

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G RAKESH

Article Assistant

75 Points Posted on 26 August 2021

Hi,

One of Client Gross salary for the FY 20-21 is RS. 833000/- and Net Taxable Income except FnO is Rs. 442000/- after all Sec 80C Deductions, FnO Loss is Rs. 674000/-, ( FnO Turnover of Rs. 94 Lakhs ).

So when i am trying file in ITR-3 form it is showing as validation error as "Tax Payer Claimed Loss under the head of PGBP/No account case(Part B)of P&L, however he has not filed the Part A-BS and Part A-P&L and has not got the Books of accounts audited"

Part A- BS and Part-A of P&L also Filled.

But in the FY 19-20, we have filed in same manner as Loss of Rs. 14 L in F&O and with Gross salary as Rs. 6.5 Lakhs,

But this time showing this error. or is it a Technical Glitch ??

Please Help.

Replies (8)

Quick Summary

This discussion addresses an ITR-3 filing error encountered when claiming a loss from Futures & Options (F&O) alongside salary income. The error message indicates a requirement for audited accounts when F&O losses are declared, even with turnover below the typical audit threshold. While some users suggest an audit is necessary, others believe it's a technical glitch, especially as the same filing method worked previously. The thread explores whether salary income can offset F&O losses and offers potential solutions, with one user reporting successful filing without an audit after resolving the issue.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121407 Points Posted on 27 August 2021

Whether the return filed last year has been processed? If not, you may get defective notice for same.

Well, this year it will not get through. You need to get accounts audited.

CA. Umesh kumar

ca.umesh11@gmail.com

963 Points Posted on 31 August 2021

Audit required, as you declare profit less than 8/6 percent

MANISH DAMANI

Commodity Trader

38 Points Posted on 06 September 2021

No audit required as turnover below 1 crore. Same issue I am facing while filing itr3. And salary income cannot be adjusted with fno loss. Audit only required if fno turnover crossed 1 crore and cash recreipt or payment is 5℅ more. What was happening with you is technical glitch. You are not alone we are on same boat.

MANISH DAMANI

Commodity Trader

38 Points Posted on 06 September 2021

Originally posted by : MANISH DAMANI
	No audit required as turnover below 1 crore. Same issue I am facing while filing itr3. And salary income cannot be adjusted with fno loss. Audit only required if fno turnover crossed 1 crore and cash receipt or payment is 5℅ more. What was happening with you is technical glitch. You are not alone we are on same boat.