Audit query derivatives options trading - Urgent reply requested, IT return last date is 31st Dec.

Manoj Punjabi (Accountant) (210 Points)

18 December 2021  

Sir, please guide me if Audit is compulsory for individual IT returns in below mentioned case:

Gross Salary income is 6 Lacs

Taxable Income after deduction is 4 lacs (no Tax payable)

Options trading turnover is 2 crores.

Options trading loss is 2 Lacs.

I get confusing results in search from different sites: 

1) some say option trading turnover above 1 crore means Audit, some say from AY 21-22 trunover limit for Audit is above 5 crores in case of options trading.

2) some say because you have gross income 6 lacs, which is above thresh hold IT limit, so you have to go for Audit, some say your actual Total taxable income is 4 lacs, which is below thresh hold IT limit so you don't have to do audit.

Please guide me if I can file returns without audit, also whether I can show & carry forward option trading loss of 2 lacs in IT returns.

Regards

Manoj Punjabi