Hi,
My client transacted in commodities and incurred loss of around 50,000/- . His total income including salary and other sources income is above exemption limit. Is tax audit required for him?
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Commodities transactions
Replies (8)
Turnover of commodity transaction?
since loss amount is just 50 k. You don't have to go in for audit.
These are not intra-day transactions so I added all sales value. It came out to rs.22639062.
Is it correct? Also, let me know if tax audit is required or not?
see for f&o transaction audit only is applicable if net. result of trade{profit/loss} is above turnover slab. if not it's not required
My understanding is that these will need to be audited based on your turnover (either turnover crosses the 2 Crore mark or in case the turnover is less than 2 Crore and profits is less than 8% of the total turnover). So in my case turnover is less than 2 crores and since I have losses of 50,000 which is less than 8% of turnover, I need to get the tax audit.
Please guide
what you have said would only be applicable if you had traded in equity shares, that to only if you had taken delivery etc and not for f&o. For futures and options only based on the net result you have capture the profit or loss and not on the base of total volume.
| Originally posted by : Dhirajlal Rambhia | ||
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Turnover of commodity transaction? |
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Sir, turnover is around 3 lakhs (total of profit and losses) and losses are around 50,000.
The turnover of 3 lakhs is below the limit as specified u/s. 44AA....... i.e. no books of accounts required to be maintain, as such no audit mandatory, even if the GTI exceed BEL....
Good Luck ....
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