Avoiding tax audit in case of intraday equity losses and STCL

I am a Salaried employee (annual income over 10L). I have day Trading losses of 3300 with an annual turnover of 3400. Short term capital loss are also present of about 40k.

I am seeking help with taxation. Please correct me wherever i am wrong.

1. Day Trading is a speculative business Income. Tax audit is necessary in my case as total turnover is 3400 ( < 2 crores ) and Net profit is -3300 ( < 6% of Total turnover ). Use of ITR 2 is not possible if i report my losses.

2. To be fully compliant, I have to use ITR 3 and get the tax audit done.

I dont want to carry forward the losses and avoid tax audit. Here i seek advise from all of you. I feel, I have following options.

1. Use ITR 2, Report STCL and Salary income, Ignore day trading losses.

2. Use ITR 3, Report STCL and Salary under appropriate schedule. Though i have incurred loss from day trading, I report profit of more than 6% of my annual turnover ( In this way i can avoid tax audit ) and pay required taxes.

Please advice me on what would be the best path to follow. Any other suggestions except above are most welcome.

Also, while filing the return which ITR should i file under? Under ITR 3 i see that there is a section of selecting whether tax audit has been done or not - here should i say it has not been done? Will that not cause any issue?