Whaty is the criteria for the person doing trading in futures and options ?
When audit is applicable ?
3 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14916 Points)
Replied 31 July 2018
Provision of Income tax apply when trader would be requried to prepare normal books of accounts under section 44AA of the income tax act , Moreover if the turn over is more than 1Crore or if the profit is less than 8% taxpayer would requried to get accounts Audited under section 44AB of the income tax act and for each year which the turnover exceeds 1 Crore .
Manish Ghiria
(CA )
(42 Points)
Replied 31 July 2018
The answer is correct.
I would like to add to your answer.
If the person is trading and showing it as business income then only audit would be applicable. If the person is showing it as investment then audit is not applicable. The word turnover signifies only buisness income.
Ashok Kumar
(16 Points)
Replied 07 August 2018
person doing in f&o then it will be treated as business income 43(5).
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