Audit requirement for intraday losses

Summary: For intraday traders in India, a tax audit is mandatory if your annual turnover exceeds ₹10 crore (with >95% digital transactions) or ₹1 crore (if cash transactions exceed 5%). If you use the presumptive taxation scheme (Section 44AD), an audit is required if you declare profits below 6% of your turnover while your total income exceeds the basic exemption limit. Intraday losses are treated as speculative business losses, which can be carried forward for four years if the ITR is filed by the due date.