kindly add the loss and profit of the each transaction through out the year, it will become your turnover of the year. if it cross 1 crore than audit is mandatory and if turn over is below 1 crore then u have to show 8% of the turnover. as u have said there is net loss for all the transactions then you have to for income audit us 44AD
1. According to sec 44AB tax audit is mandatory if a person's gross receipts or T.O exceeds Rs. 1 crore during the PY.
2. Trading in futures and options (F&O) will be a business and any gains or loss from the above business should be reported under the head PGBP.
3. With respect to the applicability of Tax audit under sec 44AB, it is only the T.O or Gross Receipts that should be considered and profit or loss is of no consideration in here.
4. Hence in your case, since your T.O is less than Rs. 1 crore Tax audit u/s 44AB will not be applicable for you.
Please correct me if the above solution has an alternative view.
Dear Suresh ji , Since individuals are cover under section 44AD so don't you think tax audit due 44AD will be applicable to the assessee as his having profit less than 6% and his total income exceeds maximum amount not chargeable to tax