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Audit requirement

Aman Mishra (Manager (Accounts)) (24 Points)

11 December 2018

Dear Sir

A person having commodity trading and F&O Turnover is 10 Lakh geting losses of Rs. 32000/- any one tell me audit is requred

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2 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 12 December 2018

Audit is required when turnover crosses 1Cr.

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 09 July 2019

As per section 44AB Tax audit is required if the total turnover of business exceeds Rs. 1 Crore or gross receipts from profession exceeds Rs. 25 .Lakhs.

As per section 44AB both the business and profession would not be covered under tax audit as it does not exceed the limit.

But there is another clause added to section 44AB that assessee carrying on business claiming income to be lower than 8% has to get his books audited

So losses from F&O trading i.e losses from business is covered under this clause and tax audit would be applicable.

And - " Tax audit for Income below 8% is not applicable for professional Income'. So you cannot club the business losses and professional income and check the 8% applicability.